(1) Reasons for Proposal

To facilitate collective investment schemes investing in real assets, this amendment aims to allow the borrowing and lending of money related to special assets such as infrastructure; allow the profits and losses to be distributed among investors in collective investment schemes; allow the creation and establishment of a closed-end fund with no existence term; reduce the reporting burden by considering reporting changes in the registration information by the managing member as the reporting changes of private equity funds; and otherwise improve and supplement some of the shortcomings that have emerged in the operation of the current system.

(2) Major Provisions

A. Introduce operational, special exceptions of collective investment property for special assets (Article 94 (1) and (2)) 

Prescribe that, to improve the efficiency of collective investment property management, when a collective investment business entity acquires special assets, such as social infrastructure, with a collective investment property or operates a special asset fund, it can borrow money with the property of the collective investment scheme, and allow a collective investment business entity to lend money with a collective investment property to corporations that conduct business related to real estate and special assets.

B. Allow differentiation, such as the distribution of profits and losses from a collective investment scheme (Article 187-2 newly inserted) 

To reflect investors' various preferences, allow a collective investment scheme that the fund, collective investment business entity, etc., that collectively invest in real estate and special assets exceeding a certain percentage primarily takes responsibility for losses to set differently matters concerning the distribution of profit or loss to investors or the priority in profit or loss according to the collective investment agreement.

C. Expand the scope of closed-end funds (Article 230 (1)) 

To improve the efficiency of collective investment property management, allow the creation and establishment of a closed-end fund if there is no concern about damaging the protection of investors and stable operation of collective investment property even though the existence term is not determined.

D. Reduce the reporting burden of the managing member of a private equity fund (Article 249-15 (8) through (10) newly inserted) 

1) Since, currently, any change must be reported if any matters reported at the establishment of a private equity fund are changed, amend to the effect that the changes must be reported for each type of private equity fund for any change in matters relating to the person registered as the managing member of multiple private equity funds.

2) To reduce this reporting burden, require that both changes to registration details of the managing member and financial statements for each business year shall be reported only once, and acknowledge that changes in the matters at the establishment of a private equity fund are reported.