China implements new online marketing rules for financial products

New regulations regarding the online marketing of financial products are set to take effect on September 30. Following the announcement of the ‘Measures for the Administration of Online Marketing of Financial Products’, the Shanghai Securities Regulatory Bureau has issued notices to fund managers, asset management institutions, and fund sales agencies to ensure implementation.

Key provisions of the new rules include a ban on collaborating with any organizations or individuals, such as internet influencers (known as ‘Big Vs’), for financial product marketing outside of authorized third-party internet platforms. Financial institutions must maintain business independence, technical security, and data confidentiality when working with these platforms. Specifically, third-party platforms are prohibited from intervening in investor solicitation, account opening, transaction processing, clearing, or fund sales.

Furthermore, payments to third-party platforms cannot be linked to business metrics such as account openings, transaction volumes, or commission fees. Institutions are also encouraged to strengthen their own mobile applications to ensure service continuity during technical failures on third-party platforms. Existing cooperation with transfer channels that have not completed information technology system filings must be rectified within one year of the measures' implementation.