Following on the amendment of the PRC Securities Investment Funds Law on June 1, 2013, on June 21, the China Securities Regulatory Commission (CSRC) and the China Insurance Regulatory Commission (CIRC) jointly issued the Pilot Measures for Establishment of Fund Management Companies by Insurance Institutions. The Measures regulate the establishment of fund management companies by insurance companies incorporated in China and remove previous restrictions on insurance companies being majority shareholders of fund management companies. Insurance companies can now either establish new fund management companies or acquire majority interests in existing fund management companies. Although the Pilot Measures permit all insurance companies, including group (holding) companies, asset management companies and other insurance institutions, to establish or acquire fund management companies, initially insurance companies applying to participate in the pilot program will be jointly selected by CSRC and CIRC.

On June 3, CSRC and CIRC jointly issued the Interim Administrative Provisions on the Sale of Securities Investment Funds by Insurance Institutions. The Interim Provisions permit qualified insurance companies, insurance brokerage companies, and insurance agency companies to sell securities investment funds. The issuance of the Administrative Provisions marks closer cooperation by CSRC and CIRC in joint supervision of cross-sector business.