China Securities Regulatory Commission: Reasonably reduce the level of public fund subscription fees and sales service rates

The Zhitong Finance App learned that on December 31, the China Securities Regulatory Commission revised and issued the “Regulations on the Management of Sales Expenses of Publicly Raised Securities Investment Funds”. The “Regulations” consist of 6 chapters and 29 articles. The main contents are as follows: First, reduce the level of public fund subscription fees and sales service rates in a reasonable manner to effectively reduce investors' costs. The second is to simplify the redemption fee schedule and make it clear that all redemption fees are included in the fund's assets. Third, make it clear that investors will no longer be charged sales service fees for fund shares held for more than one year (with the exception of money market funds), and long-term holding is encouraged. Fourth, set a differentiated upper limit on customer maintenance fee payment rates to encourage vigorous development of equity funds. Fifth, strengthen the regulation of fund sales expenses, make it clear that interest on fund sales and settlement funds is attributable to investors, and require that fund investment operations must not be double charged. The sixth is to establish a direct sales service platform for institutional investors in the fund industry to provide efficient, convenient and safe services for fund managers' direct sales business development.

The original text is as follows:

The China Securities Regulatory Commission revised and issued the “Regulations on the Administration of Sales Expenses of Publicly Raised Securities Investment Funds”

In order to implement the “Action Plan to Promote the High-Quality Development of Public Funds”, further reduce investment costs for fund investors, standardize the public fund sales market order, and protect the legitimate rights and interests of fund investors, the China Securities Regulatory Commission revised the “Regulations on the Management of Sales Expenses of Open Securities Investment Funds” (hereinafter referred to as the “Regulations”), which will be officially implemented on January 1, 2026.

The “Regulations” consist of 6 chapters and 29 articles. The main contents are as follows: First, reduce the level of public fund subscription fees and sales service rates in a reasonable manner to effectively reduce investors' costs. The second is to simplify the redemption fee schedule and make it clear that all redemption fees are included in the fund's assets. Third, make it clear that investors will no longer be charged sales service fees for fund shares held for more than one year (with the exception of money market funds), and long-term holding is encouraged. Fourth, set a differentiated upper limit on customer maintenance fee payment rates to encourage vigorous development of equity funds. Fifth, strengthen the regulation of fund sales expenses, make it clear that interest on fund sales and settlement funds is attributable to investors, and require that fund investment operations must not be double charged. The sixth is to establish a direct sales service platform for institutional investors in the fund industry to provide efficient, convenient and safe services for fund managers' direct sales business development.

Earlier, the China Securities Regulatory Commission publicly solicited comments from the public on the “Regulations”. All parties in the market agree with the direction and content of the revisions to the Regulations and put forward specific amendments. The China Securities Regulatory Commission studies feedback one by one, carefully absorbs and adopts them, and amends and improves the “Regulations”.

In the next step, the China Securities Regulatory Commission will do a good job of implementing the “Regulations”, adhere to the principle of prioritizing investors' interests, and steadily reduce the costs for fund investors.

This article was edited by the China Securities Regulatory Commission, Zhitong Finance Editor: Chen Wenfang.