GUANGZHOU (Fund China) – To enhance the quality of investment funds, to prevent and reduce investment risk management, and earnestly safeguard the interests of fund investors, fund management companies have established a comprehensive risk control mechanisms and risk management systems, and contracts and in fund prospectuses be clearly defined.

(1) fund management companies with risk control committee (or compliance review and Risk Control Committee), and other risk control mechanisms responsible for the overall operation of the control of the risk.

(2) establish internal risk-control system. Major include: strict accordance with the laws, regulations, and the Fund’s investment ratio stipulated in the contract to invest and not to engage in investment regulations prohibit fund business; Upholding the principle of independence, the fund management company to manage the assets of the funds and fund management companies owned assets should be mutually independent accounting systems, corporate accounting strict separation and fund accounting; a centralized trading system, each transaction must have a written record and time stamping chapter; to strengthen internal control information, a space isolation and access control system, an important internal information to prevent leaking; prospects and background departments should operate independently, and so on.

(3) the audit of internal control. The purpose of the audit is the examination, evaluation of internal control systems and the operation of the legitimacy of investment companies, compliance and effectiveness of internal control oversight of the implementation of the system, reveals internal management and investment operation of the risk in the timely submission of improvements, ensure that national laws and regulations and the public Secretary for the effective internal management system implementation and safeguard the legitimate rights and interests of fund investors.

Copyright Fund China 2009.

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