Cybersecurity Law And WFOE PFM: Impact And Adaptive Strategies

On 30 June 2016, Asset Management Association of China ( "AMAC" ) released the FAQs Regarding Registration and Record-Filing of Private Funds (No. 10) ( "FAQ No. 10" ) under the permission of China Securities Regulatory Commission ( "CSRC" ). FAQ No. 10 allows foreign financial institutions to engage in private securities investment fund management business by establishing foreign-invested enterprises in the People' s Republic of China ( "China" or "PRC" ). A certain number of foreign financial institutions have been actively preparing to launch their wholly foreign-owned private securities investment fund management institutions ( "WFOE PFM" ). For instance, Fidelity and UBS have already completed their WFOEs' registration with AMAC to become WFOE PFMs and commenced their businesses accordingly.