The "SSE Business Guidelines for Operational Risk Management of ETF Management Companies", issued by the Shanghai Stock Exchange (SSE) today (April 6), was SSE's new major measure oriented for the fund market after the release of the "Guide for One-stop Service of ETF Operation" in March this year.
The recent two years have witnessed the rapid development and substantial market of ETF products. The diversified growth of ETFs makes higher requirements on the operation and management of fund management companies. Based on years of practices, the SSE worked out the above guidelines by studying the intrinsic operational rules of ETFs and synthesizing the operation and management experience of various fund management companies.
According to sources, the guidelines requires that fund management companies regulate the operational procedure and anti-risk measures of ETFs by heightening the construction of relevant internal-control mechanisms and specifying the employees and systematical deployment for ETF-related businesses of fund management companies. Moreover, the guidelines requires that a fund manager should do all he can in risk disclosure and investor education for the interests of fund holders.
FTSE Mondo Visione Exchanges Index:
Shanghai Stock Exchange Adopts New Measure For Fund Market
Date 09/04/2012