What were the key points of the 2021 private fund reform?

To prevent a repeat of private fund scandals such as Lime and Optimus and to strengthen the supply of risk capital, the FSCMA and its subordinate regulations were amended, taking effect on October 21, 2021.

Private funds were reorganized into general and institutional-only funds, and safeguards were strengthened for general private funds in which general investors invest, including delivery of a key product description, oversight of management by distributors and trustees, and more items required in asset management reports. At the same time, the investment rules were unified to give managers more autonomy.