What Is a Qualified Trust?

Collective fund trust plan (referred to as trust plan), that is, the trust company acts as the trustee, according to the wishes of the client, for the benefit of the beneficiary, the funds delivered by two or more (including two) the client are centralized management, use or disposal Funds trust business activities.

Collective funds trust scheme

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Collective Fund Trust Scheme (referred to as

Chapter I General Provisions

The first is to regulate the operation of the collective fund trust business of trust companies, and to protect the legitimate rights and interests of the parties to the collective fund trust plan. Develop this approach.

Article 2 A collective fund trust plan (hereinafter referred to as a trust plan) shall be established in the territory of the People's Republic of China. The trust company shall act as the trustee and deliver more than two (including two) trustees in accordance with the wishes of the trustees. These measures are applicable to fund trust business activities involving centralized management, use or disposal of funds.

Article 3 The trust plan property is independent of the inherent property of the trust company. The trust company shall not classify the trust plan property as its inherent property; the trust company's property and income obtained as a result of the management, use or other circumstances of the trust plan property shall be included in the trust. Plan property; if a trust company is liquidated due to dissolution, cancellation or bankruptcy according to law, the trust plan property does not belong to its liquidation property.

Article 4 A trust company that manages and uses the properties of a trust plan shall perform its duties diligently, perform its obligations of good faith, prudence and diligence, and serve the best interests of the beneficiaries.

Chapter II Establishment of Trust Scheme

Article 5 The establishment of a trust plan by a trust company shall meet the following requirements:

(1) The client is a qualified investor;

(2) The trustee participating in the trust plan is the sole beneficiary;

(3) The number of natural persons in a single trust plan shall not exceed 50, and the number of qualified institutional investors is unlimited;

(4) The term of the trust is not less than one year;

(5) The trust funds have a clear investment direction and investment strategy, and are in compliance with national industrial policies and other relevant regulations;

(6) Trust units whose trust beneficial rights are divided into equal shares;

(7) The trust contract shall stipulate the trustee's remuneration. Except for reasonable remuneration, the trust company shall not directly or indirectly use any trust property to make profits for itself or others in any name;

(8) Other requirements stipulated by the China Banking Regulatory Commission.

Article 6 The term qualified investor mentioned in the preceding article refers to a person who can identify, judge and bear the corresponding risks of a trust plan if one of the following conditions is met:

(1) Natural persons, legal persons or other organizations established in accordance with law with a minimum investment of 1 million yuan in a trust plan;

(2) Natural persons whose personal or family financial assets totaled more than 1 million yuan at the time of subscription and were able to provide proof of relevant property;

(3) A natural person whose personal income has exceeded 200,000 yuan per year in the past three years or the combined income of both spouses has exceeded 300,000 yuan per year in the last three years, and who can provide relevant income certificates.

Article 7 A trust company recommending a trust plan should have standardized and detailed information disclosure materials, clearly indicate the risk and return characteristics of the trust plan, fully disclose the risks and risk-taking principles of participating in the trust plan, and truthfully disclose the professional team's resume, professional training, and employment. Experience, must not use any misleading statement that may affect investors' independent risk judgment.

Where a trust company recommends a trust plan in another place, it shall report to the provincial-level agency of the China Banking Regulatory Commission in the place of registration or the place of recommendation before the recommendation.

Article 8 When a trust company recommends a trust plan, it shall not engage in the following acts:

(1) promising in any way that the trust funds will not be lost, or committing the minimum return of the trust funds in any way;

(2) conducting public marketing and publicity;

(3) Entrusting non-financial institutions to conduct promotion;

(4) The referral materials contain content that is inconsistent with the trust documents, or there are false records, misleading statements, or major omissions;

(5) Exaggerating the company's past operating performance or maliciously demeaning its peers;

(6) Other acts prohibited by the China Banking Regulatory Commission.

Article 9 When a trust company establishes a trust plan, it shall conduct due diligence beforehand, and issue a due diligence report on feasibility analysis, legality, risk assessment, and whether there are related party transactions.

Article 10 The trust plan document shall contain the following:

(1) Statement of subscription risk;

(2) A description of the trust plan;

(3) a trust contract;

(4) Other contents stipulated by the China Banking Regulatory Commission.

Article 11 The statement of subscription risk shall contain at least the following:

(1) The trust plan does not promise capital preservation and minimum returns, has certain investment risks, and is suitable for qualified investors with strong risk identification, assessment, and tolerance;

(2) The client shall subscribe for the trust unit with its legally owned funds, and shall not illegally pool funds of others to participate in the trust plan;

(3) Risks arising from the management of trust property by the trust company in accordance with the trust plan documents shall be borne by the trust property. If the trust company loses the trust property due to violation of the trust plan documents and improper handling of trust affairs, the trust company shall compensate for the inherent property; if the trust company fails to compensate, the investor shall bear the burden;

(4) The signature of the client on the subscription risk declaration signifies that it has carefully read and understood all the trust plan documents and is willing to bear the corresponding trust investment risks in accordance with the law.

The declaration of subscription risk is in duplicate, stating that the number of trust units subscribed by the client is held by the trust company and the beneficiary respectively.

Article 12 The description of the trust plan shall at least include the following:

(1) Basic information of the trust company;

(2) the name and main contents of the trust plan;

(3) A summary of the contents of the trust contract;

(4) the referral date and duration of the trust plan and the price of the trust unit;

(5) the name of the recommender of the trust plan;

(6) List and resume of trust managers;

(7) Legal opinions issued by law firms;

(8) Contents of risk warnings;

(9) Other contents stipulated by the China Banking Regulatory Commission.

Article 13 The trust contract shall specify the following matters:

(1) the purpose of the trust;

(2) the name (or name) and domicile of the trustee and custodian;

(3) the currency and amount of the trust funds;

(4) the scale and duration of the trust plan;

(5) Specific methods or arrangements for the management, use and disposal of trust funds;

(6) the calculation of trust benefits, the time and method for delivering trust benefits to beneficiaries;

(7) the commitment of trust property taxes and fees, the calculation and payment of other expenses;

(8) the calculation method, payment period and method of the trustee's remuneration;

(9) the ownership and distribution of the trust property upon termination of the trust;

(10) the rights and obligations of the parties to the trust;

(11) Procedures and rules for the convening, deliberations and voting of the beneficiary conference;

(12) the method of selecting new trustees;

(13) Risk disclosure;

(14) Liability for breach of contract by the parties to the trust and the method of dispute settlement;

(15) Other matters agreed by the parties to the trust.

Article 14 A trust contract shall include the following words in a bold font on the top right of the front page: The trust company shall perform its duties with due diligence in managing the trust property and perform its obligations of honesty, credit, prudence and effective management. Risks arising from the management of trust property by the trust company in accordance with the terms of this trust contract shall be borne by the trust property. If a trust company violates the trust contract and handles trust affairs improperly and causes losses in the trust property, the trust company shall compensate for the inherent property; if the compensation is insufficient, the investor shall bear the burden.

Article 15 Before subscribing for a trust unit, the client should carefully read the entire contents of the trust plan document and sign the declaration of subscription risk to declare that it is willing to bear the investment risk of the trust plan.

The trust company shall provide convenience to ensure that the trustee can consult or copy all the trust plan documents, and provide the trustee with the original text of the trust contract.

Article 16 When a trust company introduces a trust plan, it may sign a trust fund agency payment agreement with a commercial bank. The client entrusts the trust unit in cash, which can be collected and paid by a commercial bank. When a trust company entrusts a commercial bank to handle the receipt and payment of trust plans, it should clearly define the rights and obligations between the two parties. The commercial bank only assumes the responsibility of receiving and paying agency funds and does not bear the investment risks of the trust plan.

A trust company may entrust a commercial bank to recommend trust schemes to qualified investors on its behalf.

Article 17 If the promotion period of the trust plan expires and the conditions for establishment stipulated in the trust documents have not been met, the trust company shall return the amount paid by the client within 30 days after the expiration of the promotion period, and add the bank deposit interest for the same period. The related debts and expenses arising therefrom shall be borne by the trust company with inherent property.

Article 18 After the establishment of the trust plan, the trust company shall deposit the trust plan property into a special account for the trust property, and disclose the introduction and establishment of the trust plan to the client within five working days.

Chapter III Custody of Trust Plan Property

Article 19 The funds of the trust plan are subject to guarantee control. For non-cash trust assets, the parties to the trust may agree to implement third-party custody, but if the China Banking Regulatory Commission provides otherwise, such provisions shall prevail.

During the existence of the trust plan, the trust company shall choose a commercial bank with stable operation as the custodian. The custody account of the trust property and the special account for the trust property shall be the same account.

When a trust company requires the use of trust funds in accordance with the trust plan documents, it shall provide a copy of the trust contract and a description of the use of the funds to the custodian in writing.

Article 20 The custody agreement shall include at least the following:

(1) the name and domicile of the trustee and custodian;

(2) the rights and obligations of the trustee and the custodian;

(3) Places, contents, methods, and standards for trust plan property custody;

(4) the content and format of the custody report;

(5) storage costs;

(6) The custodian's supervision and inspection of the trust company's business;

(7) Other contents agreed by the parties.

Article 21 The custodian shall perform the following duties:

(1) safekeeping of trust property;

(2) Setting up separate accounts for different trust schemes kept to ensure the independence of trust property;

(3) to confirm and execute the trust company's instructions for the management and use of trust property, and to check the trust property transaction records, funds and property accounts;

(4) Recording the transfer of trust funds and keeping a description of the use of funds by the trust company;

(5) issue regular custody reports to the trust company;

(6) Other duties agreed by the parties.

Article 22 When a trust company operates in violation of laws and regulations, trust contracts, and custody agreements, the custodian shall immediately notify the trust company in writing to correct it; when major violations of laws or regulations occur or events that seriously affect the safety of the trust property, the custody People should report to the China Banking Regulatory Commission in a timely manner.

Chapter IV Operation and Risk Management of Trust Plans

Article 23 When a trust company manages a trust plan, it shall set up trust fund utilization and information processing departments that serve the trust plan, and designate a trust manager and its related staff.

Each trust plan is equipped with at least one trust manager. The person serving as the trust manager shall meet the conditions stipulated by the China Banking Regulatory Commission.

Article 24 A trust company shall establish separate accounting accounts for different trust plans for separate accounting and management.

Article 25 Trust funds may be used in combination. The combination use shall have a clear scope of application and investment ratio.

A trust company that uses trust funds to invest in securities shall adopt the method of asset portfolio, formulate investment ratios and investment strategies in advance, and take effective measures to prevent risks.

Article 26 A trust company may use its creditor's rights, stock rights, real rights and other feasible means to use trust funds.

The use of trust funds by a trust company shall be consistent with the investment direction and investment strategy agreed in the trust plan document.

Article 27 When a trust company manages a trust plan, it shall abide by the following rules:

(1) shall not provide guarantees to others;

(2) Providing loans to others shall not exceed 30% of the paid-in balance of all trust plans under its management;

(3) The trust funds shall not be used directly or indirectly to the shareholders of the trust company and their affiliates, except that all trust funds are derived from the shareholders or their affiliates;

(4) No inherent property shall be traded with trust property;

(5) No mutual trust property may be traded;

(6) Different trust plans managed by the same company shall not be invested in the same project.

Article 28 If a trust company obtains the trust income obtained from the management of a trust plan, if the trust plan documents do not stipulate other methods of use, the trust income shall be deposited with the custodian, and no one may misappropriate it.

Chapter V Change, Termination and Liquidation of Trust Plans

Article 29 During the existence of the trust plan, the beneficiary may transfer the trust units it holds to qualified investors. The trust company shall handle relevant procedures for the transfer of beneficiary rights for the beneficiaries.

Where the trust beneficiary rights are split and transferred, the assignee may not be a natural person.

The trust beneficiary rights held by the institution shall not be transferred to a natural person or divided.

Article 30 In any of the following circumstances, the trust plan is terminated:

(1) the term of the trust contract has expired;

(2) The beneficiary conference decides to terminate;

(3) termination of the trustee's duties and failure to produce a new trustee in accordance with relevant regulations;

(4) Other circumstances stipulated in the trust plan documents.

Article 31. When a trust plan is terminated, the trust company shall make a settlement report on handling trust affairs within ten working days after termination, and disclose it to the beneficiary after auditing. If the trust document stipulates that the liquidation report does not need to be audited, the trust company may submit an unaudited liquidation report.

Article 32 The remaining trust property after liquidation shall be distributed according to the proportion of the trust units held by the beneficiary in accordance with the trust contract. The distribution method can adopt the cash method, the maintenance of the original state of the property at the termination of the trust, or a mixture of the two.

In the case of cash, the trust company shall realise the trust property before the distribution date agreed in the trust plan document or before the trust expiration date, and deposit the cash in the beneficiary account.

In the case of maintaining the original state of the property upon termination of the trust, the trust company shall complete the property transfer formalities with the beneficiary within the agreed time after the expiration of the trust period. Before the transfer of trust property, the trust company shall be responsible for its custody. During the safekeeping period, the trust company shall not use the property. The income during the custody period belongs to the trust property, and the custody expenses incurred shall be borne by the trust property being kept. If the trust property cannot be transferred due to beneficiary reasons, the trust company may handle it in accordance with relevant laws and regulations.

Article 33 A trust company shall use the actual trust income generated from the management of the trust plan for distribution. It is strictly forbidden for the trust company to classify the trust income into its inherent property, or to misappropriate other trust property to advance the loss or gain of the trust plan.

Chapter VI Information Disclosure and Supervision

Article 34 A trust company shall disclose information on time in accordance with the provisions of laws and regulations and the agreement of the trust plan document, and shall ensure the authenticity, accuracy and completeness of the information disclosed.

Article 35 The beneficiary has the right to query the trust company for information related to its trust property. The trust company shall provide the relevant information accurately, timely and completely without prejudice to the legitimate rights and interests of other beneficiaries, and shall not refuse or shy away.

Article 36 After the establishment of a trust plan, a trust company shall, based on the difference in the trust plan, produce a report on the management of trust funds, the use of trust funds and a statement of income on a quarterly basis.

Article 37 The trust fund management report shall contain at least the following:

(1) the opening of special trust property accounts;

(2) the management, use, disposal and income of trust funds;

(3) changes in the trust manager;

(4) Explanation of major changes in the use of trust funds;

(5) situations involving litigation or damage to the trust plan's property or the interests of beneficiaries;

(6) Other contents agreed in the trust plan documents.

Article 38 If one of the following situations occurs in a trust plan, the trust company shall disclose it to the beneficiary within three working days after being informed of the relevant situation, and shall submit a written proposal to the beneficiary to the beneficiary within seven working days after the disclosure date Responses:

(1) the trust property may suffer significant losses;

(2) The financial condition of the user of the trust fund has deteriorated severely;

(3) The guarantor of the trust plan cannot continue to provide effective guarantees.

Article 39 A trust company shall properly keep all the information on the management of the trust plan, and the retention period shall not be less than fifteen years from the end of the trust plan.

Article 40 The China Banking Regulatory Commission shall conduct on-site inspections and off-site supervision of the trust company's management of the trust plan according to law, and require the trust company to provide relevant information on the management of the trust plan.

If the China Banking Regulatory Commission finds that a trust company has violated laws and regulations during on-site inspections or off-site supervision, it shall adopt supervision such as suspension of business and restrictions on shareholders' rights in accordance with the laws and regulations of the People's Republic of China Banking Regulatory Law Measures.

Chapter VII Conference of Beneficiaries

Article 41 The beneficiary assembly is composed of all the beneficiaries of the trust plan and exercises its functions and powers in accordance with the provisions of these Measures.

Article 42 Where the following matters occur without the trust plan documents being agreed in advance, a meeting of beneficiaries shall be convened for review and decision:

(1) Early termination of the trust contract or extension of the trust period;

(2) Changing the way of using trust property;

(3) change of trustee;

(4) raising the remuneration standard of the trustee;

(5) Other matters stipulated in the trust plan documents that a meeting of beneficiaries is required.

Article 43 The beneficiary conference shall be convened by the trustee. When the trustee fails to convene or fails to convene, the beneficiary representing more than 10% of the trust unit has the right to convene on its own.

Article 44 When convening a beneficiary conference, the convener shall announce at least ten working days in advance the convening time of the beneficiary conference, the form of the meeting, matters for deliberation, procedures and voting methods.

The beneficiary conference shall not vote on matters that have not been announced.

Article 45 The conference of beneficiaries may be held on-site or by means of communication.

Each trust unit has one vote, and the beneficiary may entrust an agent to attend the beneficiary meeting and exercise the right to vote.

Article 46 The conference of beneficiaries shall be convened only with the participation of beneficiaries representing more than 50% of the trust units; the conference shall make a decision on the matters under review and shall be subject to more than two thirds of the voting rights held by the beneficiaries participating in the conference Passed; but the replacement of the trustee, the change in the use of the trust property, and the early termination of the trust contract shall be approved by all the beneficiaries participating in the conference.

The matters decided by the beneficiary conference shall be notified to the relevant parties in a timely manner and reported to the China Banking Regulatory Commission.

Chapter VIII Penalties

Article 47 If a trust company establishes a trust plan and does not comply with the relevant provisions of these Measures, the China Banking Regulatory Commission shall order it to make corrections; if it fails to make corrections within the time limit, it shall be fined 100,000 to 300,000 yuan; if the circumstances are particularly serious, It may be ordered to suspend business for rectification or revoke its financial license.

Article 48 If a trust company's promotion of a trust plan violates the relevant provisions of these Measures, the China Banking Regulatory Commission shall order it to stop, return the funds raised and add the bank's deposit interest for the same period, and impose 200,000 yuan or more but 500,000 yuan The following fines; if a crime is constituted, criminal responsibility shall be investigated according to law.

Article 49 If a trust company's management of a trust plan violates the relevant provisions of these Measures, the China Banking Regulatory Commission shall order correction; if there is illegal income, the illegal income shall be confiscated and a fine of one to five times the illegal income shall be imposed; If the income is obtained, a fine ranging from RMB 200,000 to RMB 500,000 shall be imposed; if the circumstances are particularly serious or if it is not corrected within the time limit, the company may be ordered to suspend business for rectification or revoke its financial license; if it constitutes a crime, criminal liability shall be investigated in accordance with law.

Article 50 If a trust company does not disclose information in accordance with these Measures or the information disclosed has false records, misleading statements, or major omissions, it shall be ordered by the China Banking Regulatory Commission to make corrections, and shall be punished by not less than 200,000 yuan but not more than 500,000 yuan. Fines; those who cause damage to the beneficiaries shall be liable for compensation in accordance with the law.

Article 51 If there are other illegal acts in the establishment and management of a trust company by a trust company, the China Banking Regulatory Commission may adopt corresponding punishment measures in accordance with the laws and regulations of the Banking Regulatory Law of the People's Republic of China.

Chapter IX Supplementary Provisions

Article 52 If two or more (including two) single fund trusts are used for the same project, the client shall be a qualified investor that complies with the provisions of these Measures and the provisions of these Measures shall apply.

Article 53 Where movable trusts, real estate trusts, and other property and property rights trusts undergo the transfer of beneficiary rights, they shall abide by the relevant provisions of these Measures.

Article 54 The interpretation of these Measures shall be the responsibility of the China Banking Regulatory Commission.

Article 55 These Measures shall be implemented as of March 1, 2007. The original "Interim Measures for the Administration of Fund Trusts of Trust and Investment Companies" (PBC Order [2002] No. 7) is no longer applicable.