Article 18 If the solvency adequacy ratio of customers at the end of last quarter is lower than the regulatory requirements, they should adjust their overseas investment strategies in time, and may not continue to invest in or increase their holdings of unsecured bonds, equity instruments, real estate or related financial products.
Article 19 The trustor shall conduct due diligence on the trustee and custodian by himself or by hiring an investment consultant, fully understand the custodian's choice of custody agent, and pay attention to relevant risks.
Article 20 The client shall regularly evaluate the trustee and custodian according to the Measures, these Detailed Rules and the investment management agreement, and review the investment guidelines at least once a year.
Article 21 Where the trustee entrusts insurance funds to other professional institutions controlled by the parent company for investment management, it shall obtain the consent of the trustor and bear the ultimate responsibility for the entrustment.
In addition to the above methods, the trustee shall not entrust the entrusted assets in any name or manner.
Article 22 If the trustee's investment behavior does not conform to the Measures and these Detailed Rules due to market fluctuation, credit rating adjustment and other factors, it shall be adjusted within 3 months.
Article 23 The trustee shall formulate and implement the counterparty selection criteria, which shall be approved by the client. In addition to redeeming securities, the trustee shall choose an institution with a credit rating above A level.
The trustee shall, in accordance with the principle of the principal's best interests, choose an overseas securities service institution with standardized operation and good reputation to act as an agent for securities trading, rationally allocate insurance funds for securities trading, ensure the quality of trading, control the transaction cost, and disclose to the principal the business fees or return names and payment methods charged by securities operating institutions and securities brokerage agencies.
Article 24 A custodian shall reasonably collect custody fees according to the category and scale of assets under custody and the services provided.
In the course of performing their duties, the custodian shall bear corresponding responsibilities if it causes losses of overseas investment of insurance funds due to its own fault or negligence.
Article 25 The custodian or custodian agent shall properly keep the original certificate of ownership of the assets under custody or the original certificate of proof of full ownership. Where the laws and regulations of the place where the investment is located provide otherwise, such provisions shall prevail.
Article 26 When signing an agreement with the trustee or custodian, the client shall comply with the regulatory requirements and general practices, and the laws of People's Republic of China (PRC) or China Hong Kong Special Administrative Region shall apply, and the arbitration institution of China or Hong Kong Special Administrative Region shall make an award.
The agreement mentioned in the preceding paragraph shall be issued by a professional lawyer with more than 3 years of relevant practice experience in the law firm.
Article 27. The parties involved in overseas investment of insurance funds shall not transfer any benefits other than legal commissions and taxes, and shall not use insurance funds to obtain illegitimate interests.
Twenty-eighth insurance funds to invest in overseas real estate and unlisted enterprise equity, should refer to the relevant domestic regulatory provisions of similar varieties, standardize investment behavior, strengthen follow-up management, and guard against investment risks, operational risks and market risks.
Article 29 For overseas investment of insurance funds, derivative products such as interest rate forward, interest rate swap, interest rate futures, foreign exchange forward, foreign exchange swap, stock index futures and stock index options can be used to avoid investment risks, and the following provisions shall be observed:
(1) No speculation, and the total value of the subject matter of the derivative product contract shall not exceed 65,438+002% of the hedged basic assets;
(2) The total fees, option fees and deposits paid by financial derivatives shall not exceed 65,438+00% of the underlying assets to be hedged;
(3) The valuation of OTC contracts on each working day, and the market value exposure with any OTC counterparty shall not exceed 65,438+0% of the total assets at the end of last year;
(4) The OTC counterparty has signed the ISDA master agreement with the trustee, which has been recognized and authorized by the customer. Interest rate futures, stock index futures and stock index buying period are authorized to be listed and traded on the exchanges listed in Annex 2.
Investment guidelines should specify the scope, types, risk limit requirements, counterparty selection, special matters approval, information provision and reporting system, etc.