The China Securities Regulatory Commission has proposed rules to strengthen supervision of private investment fund fundraising, including more detailed qualified investor standards and clearer responsibilities for fund managers and sales institutions. The consultation advances the State Council-backed framework for tighter, full lifecycle oversight of private funds and would comprehensively regulate the critical investor entry and fundraising stage. The proposed rules apply the principle that sellers must perform their duties while buyers assume investment risk. They refine investor eligibility tests covering assets, income and investment experience, strengthen look-through supervision, and establish requirements for fundraising methods, documentation and prohibited conduct. Managers and sales institutions would face clearer suitability and risk disclosure duties, while dedicated fundraising settlement accounts, oversight of settlement funds, internal controls, supervisory measures and legal liabilities would support fund security and compliance.

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