China: Regulatory Waivers

The Regulator

The Asset Management Association of China (AMAC) is a self-regulatory body that represents the mutual fund industry under the supervision of the China Securities Regulatory Commission (CSRC).

Requirements to Practice

In 2014, the CSRC issued regulations governing the appointment of senior management in securities investment funds.  One of the requirements is to pass the professional qualification examinations administered by the AMAC.

The professional qualification examinations administered by the AMAC consist of two papers: Paper 1: “Rules and regulations, professional ethics, and business standard of fund investment,” and Paper 2: “Fundamental knowledge of securities investment funds.”

In order to register as senior management in securities investment funds, applicants are required to fulfill the following criteria:

  1. Pass both Paper 1 and Paper 2 of the professional qualification examinations administered by the AMAC, or
  2. Act as an investment manager with AUM over RMB 10 million in the most recent 3 years, or
  3. Pass other professional qualification examination as approved by the AMAC, or
  4. Other circumstances as deemed appropriate by the AMAC.

Note: Applicants who apply for the registration under items #2 and #3 above are required to pass Paper 1 of the professional qualification examinations administered by the AMAC.

The Exemption

In 2016, the AMAC announced that the CFA program is among the approved professional qualification examinations (item #3 above). Please note: The exemption is only available to candidates who are senior managers from hedge funds and private equity companies; it is not available to senior managers from mutual fund management companies.

For more information and announcements (in Chinese):