·New AMAC regulations place restrictions on business scope
·The majority of foreign firms now cannot manage retail capital
·Reforms are building a framework for a more mature fund industry

Update: The positional value of the investment management (IM) WFOE has been reinforced by recent regulatory adjustments by the Asset Management Association of China (AMAC). New regulations will affect foreign and Chinese managers alike. Z-Ben Advisors believes that managers should see these changes as a positive for market development and are also a clear step towards best practices and standards. We expect to see more regulatory movements coming from AMAC in the coming months. These changes should make the field more transparent to foreign managers. Initially leading this field are Aberdeen AM and Fidelity – the only two foreign managers currently with an IM WFOE. Competitive pressure is now mounting.

These reforms matter to foreign managers because……

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