Secrets to Obtaining a Financial License for an Asset Management Company Key Steps and Opportunities Revealed

How to Obtain a Financial License for an Asset Management Company Revealing the Secrets and Opportunities Behind It

In the current economic environment, the asset management industry is experiencing unprecedented development opportunities. With the accumulation of household wealth and increasingly diverse investment needs, more and more businesses and individuals are focusing on how to legally and compliantly enter this sector. Obtaining a financial license-especially one for asset management-has become a crucial step for many companies aiming to operate professionally and in compliance with regulations.

So, how can one obtain a financial license for an asset management company? What are the hidden challenges and opportunities behind the process? This article will explore the latest policy developments and market trends to provide you with a comprehensive understanding.

I. Basic Types of Asset Management Licenses and Regulatory Authorities

In China, asset management activities are primarily regulated by the China Securities Regulatory Commission CSRC, the China Banking and Insurance Regulatory Commission CBIRC, and local financial regulators. Different types of asset management companies must apply for corresponding licenses

1. Securities-based Asset Management License

Regulated by the CSRC, this license applies to asset management subsidiaries of securities firms or fund companies, allowing them to engage in collective asset management plans and directed asset management services.

2. Insurance Asset Management License

Supervised by the CBIRC, this license is intended for insurance companies or their affiliated asset management firms, enabling them to manage insurance capital investments.

3. Private Fund Manager Registration and Filing

Overseen by the Asset Management Association of China AMAC, while not a formal license, private fund managers must complete registration and filing to legally raise funds.

4. Local Financial Asset Exchange License

For local asset management companies AMCs, this license can be obtained from local financial regulators to engage in non-performing asset disposal and related activities.

Each license comes with strict requirements regarding regulatory oversight, registered capital, shareholder background, and ongoing operational capabilities.

II. Key Elements and Procedures for Obtaining a License

1. Capital Strength and Financial Health

Regulatory authorities impose clear requirements on registered and paid-in capital. For example, applying for a securities-based asset management license typically requires a minimum registered capital of RMB 500 million in paid-in cash. Applicants must demonstrate strong financial health and profitability to withstand potential market risks.

2. Qualified Shareholder Structure and Corporate Governance

Regulators place great emphasis on the stability and integrity of shareholder backgrounds. State-owned capital and financial institutions are often prioritized, while foreign or private capital must prove a clean financial compliance record. Additionally, the company must have a robust internal governance structure, including independent risk control and compliance departments staffed with qualified professionals.

3. Professional Team and Risk Control System

Asset management is a highly specialized financial service, and regulators set high standards for the qualifications of executives and investment managers. Certain roles may require certifications such as Fund Qualification, Securities Qualification, or the Chartered Financial Analyst CFA designation. Establishing a comprehensive internal control system and risk management framework is also crucial. This includes investment decision-making procedures, information disclosure mechanisms, and client protection measures.

4. Application Process and Timeline

The process from preparation to license issuance can take several months to over a year. Key steps include

Submitting application materials to the relevant regulatory body

Undergoing on-site inspections and document reviews

Providing additional explanations or making required adjustments

Receiving approval and collecting the license

Completing business registration changes and system integration

In recent years, regulatory scrutiny has intensified, with heightened standards for new applicants.

III. Recent Policy Trends and Market Developments

Since 2025, China’s financial regulatory landscape has undergone significant restructuring with the establishment of the National Financial Regulatory Administration NFRA, which has centralized and unified the issuance and oversight of financial licenses. At the same time, the transition period for the Asset Management New Rules AMNR has concluded, officially ushering the industry into the net asset value NAV era. This means asset management firms must enhance their investment research capabilities and risk management practices.

According to reports from Shanghai Securities News, the number of newly registered private fund managers nationwide declined by approximately 15% in the first half of 2025, reflecting a tightening in industry access. However, the business scale of licensed institutions has grown, indicating market recognition of compliant operations.

Driven by emerging areas such as green finance and technology-driven finance, asset management companies that incorporate ESG investment principles or possess fintech capabilities are more likely to gain favor from both regulators and the market.

IV. Strategic Value and Business Opportunities Behind the License

Obtaining a financial license is not only a legal compliance requirement but also a key stepping stone for business expansion and brand enhancement. Holding a license enables a company to legally raise funds and conduct investment management activities, forming the basis of a sustainable profit model.

More importantly, in the context of increasing financial convergence, companies with multiple licenses hold a distinct competitive edge. For instance, large financial conglomerates integrate banking, insurance, securities, and fund resources to build comprehensive service ecosystems, achieving synergies.

For startups, if obtaining a license directly is difficult in the short term, collaboration with licensed institutions through channel business or co-management arrangements can serve as an effective entry strategy, allowing gradual accumulation of experience and resources.

V. Conclusion

Securing a financial license for an asset management company is no easy feat-it is a comprehensive test of a company’s overall strength. However, once obtained, it opens the door to the real financial market and unlocks access to vast, untapped opportunities.

In an environment of tightening regulation and rising competition, only those who uphold compliance and strengthen their core capabilities can thrive in this fertile landscape. The future of asset management belongs to institutions that possess both licensing advantages and innovation-driven momentum.