The China Securities Regulatory Commission (CSRC) revised and renamed its rules on sales fees for publicly offered securities investment funds, rolling out a set of fee reductions and market conduct requirements intended to lower fund investors’ costs and strengthen order in the fund distribution market, effective 1 January 2026. The revised rules lower subscription and purchase fees and sales service fee rates, simplify redemption fee arrangements and require all redemption fees to be credited to fund assets. For fund units held for more than one year, sales service fees must no longer be charged (except for money market funds), and differentiated caps are introduced for the proportion of client maintenance fees that can be paid, with the stated aim of encouraging the development of equity funds. The rules also specify that interest on fund sales settlement monies belongs to investors, prohibit double charging in fund investment advisory business, and establish an industry direct sales service platform for institutional investors to support fund managers’ direct sales operations. The CSRC noted it had previously consulted publicly on the revisions, broadly supportive feedback was received, and suggestions were reviewed and incorporated into the final text. It will now focus on implementation and further cost reductions on an investor-first basis.
China Securities Regulatory Commission 2025-12-31
China Securities Regulatory Commission revises publicly offered fund sales fee rules to cut investor costs from 1 January 2026
The China Securities Regulatory Commission revised rules on sales fees for publicly offered securities investment funds, effective 1 January 2026, to reduce investor costs and enhance market conduct. Key changes include fee reductions, simplified redemption arrangements, and new requirements for fund sales service fees and client maintenance fees. The revisions aim to encourage equity fund development and establish a direct sales service platform for institutional investors.