Private equity funds uniformly file for record with the Fund Industry Association.

　　On October 23, 2012, the draft amendment to the Securities Investment Fund Law was submitted to the Standing Committee of the National People's Congress for its second review. Compared with the first draft, the second draft clarifies the scope of application of the Fund Law: companies or partnerships established for the purpose of securities investment activities, whether through public or private fundraising, and whose assets are managed by the fund manager or general partner, are subject to the Fund Law in their securities investment activities.
　　Meanwhile, the second draft also revised the clause in the first draft concerning the organizational form of funds, deleting the provisions on the council-type and unlimited liability-type. Previously, Article 48 of the draft amendment stipulated that the organizational forms of securities investment funds were contract-type, council-type, and unlimited liability-type. Sun Anmin, Vice Chairman of the Legislative Affairs Commission of the National People's Congress, said that after joint research with relevant departments, the Legislative Affairs Commission believed that council-type and unlimited liability-type funds still belong to contract-type funds, differing only in the internal organizational structure of the fund unit holder's meeting and the form of responsibility assumed by the manager, and therefore do not need to be separately designated as legally defined fund organizational forms.
　　The registration and filing authorities for private equity funds have also been simplified. The previous draft amendment stipulated that fund managers of privately raised funds, whose total amount of funds raised and number of fund unit holders reach a specified amount, should apply for registration with the State Council's securities regulatory agency; those below the specified amount should register with the fund industry association. Sun Anmin explained that according to the above provisions, the State Council's securities regulatory agency and the fund industry association separately register, file, and record fund managers and the amount of funds raised for privately raised funds, which is not conducive to a unified understanding of the situation of privately raised funds.
　　In the second draft, fund managers of privately raised funds should complete registration procedures with the fund industry association; after the privately raised funds are raised, the fund manager should file with the fund industry association; for funds whose total amount of funds raised and number of fund unit holders reach the specified amount, the fund industry association should report to the State Council's securities regulatory agency.
　　In addition, the second draft also added provisions on the rules followed by fund managers in operating fund property and risk prevention; adjustments were made to the fund contract for privately raised funds, the investment scope of fund property, and the regulations on fund managers. To strengthen the protection of investor interests, supervisory bodies can be added within the fund, as can be stipulated in the fund contract.