Wealth Management To Settle The Ticket "Sword" Appropriateness "Step On Line"

In the past 5.15 national Investor Protection Publicity Day, all parties in the market have targeted publicity and guidance.

According to the twenty-first Century economic report reporter combing, there are two sessions of delegates and members focus on capital market investor protection.

For the information management industry, the chaos that emerged in financial sales in the past is also urgently needed. For example, the recent widespread concern in the whole market of the Bank of China's crude oil treasure event, as well as the previous market violations of promised product revenue, fraud misleading marketing, as well as illegal "spell" sales products and other chaos.

At the previous meeting of the finance committee, many times mentioned the issue of strengthening investor protection in the capital market.

For example, the twenty-fifth meeting of the Finance Committee in April 7th pointed out that it is necessary to resolutely crack down on all kinds of fraud and fraud. In April 15th, the twenty-sixth meeting of the financial committee focused on strengthening investor protection, emphasizing fraud and fraud. In May 4th, the twenty-eighth meeting of the financial committee mentioned the protection of investors' legitimate interests.

Investor protection is being focused again

Not long ago, just 5.15 of the past national Investor Protection Publicity Day, all parties in the market had targeted publicity and guidance.

In May 15th, the China Securities Association, the China Securities Investment Fund Association and the China Listed Company Association issued a proposal to implement the new securities law and strengthen investor protection to all listed companies and securities fund industry organizations. It pointed out that in order to study and implement the new securities law, we should earnestly protect the legitimate rights and interests of investors, and advocate more law-abiding integrity, so as to strengthen investor protection. On the basis of this, we should be more diligent and conscientious in consolidating the main responsibility of investor protection; more people-oriented, and improving the working mechanism of investor protection.

According to the twenty-first Century economic report reporter, Xie Wei, a member of the CPPCC National Committee, a member of the Central Committee of the Democratic League and general manager of the Bank of China Schroder fund, submitted a proposal on the appropriateness management of financial products sales.

In the NPC deputies and CPPCC members, Xie Wei comes from the fund industry.

The crux of investor protection is the management of investors' "appropriateness" or the frequent occurrence of wealth management institutions.

For example, in a judgment issued by the Bank of Beijing branch of the Bank of China in 2019, the sub bank recommended a risk mismatch fund product to its clients during the fund sales process, resulting in a 60% loss of the clients. The court finally decided that the bank would compensate the clients for all principal losses and compensate the corresponding interest losses.

In fact, investor education should not only be concerned with ex post investor protection, but also should be paid attention to.

"Recent heavy meetings have frequently mentioned investor protection, which will further enhance market confidence." Lu Fu commissar, chief economist of Huafu securities, pointed out.

"In terms of investor protection, civil law, litigation and other related legal systems need to be followed up and improved. The protection of investors' interests is a top priority in the upgrading of capital market. Fu Lichun, director of Northeast Securities research, told the twenty-first Century economic news reporter.

Violation is subject to continuous supervision.

Many agencies have been punished by regulators for sale irregularities.

In May 12th, the Xinjiang Supervision Bureau of the SFC announced a penalty. It pointed out that Dou Shichao, a member of the securities company of Urumqi, had committed illegal profits and losses to investors during the sale of fund products during the tenure of Beijing South Road Securities Business Department of Hua Fu securities limited liability company.

Xinjiang securities regulatory bureau decided to adopt supervisory letters to Dou Shichao.

For example, in 2019, the Zhejiang Securities Regulatory Commission issued five letters of decision on administrative supervision measures, and made a regulatory decision to rectify the sales irregularities exposed in the crisis of the information management products of ajian securities.

The existing problems also include the behavior of the staff of the business department to make promises that investors will not lose their assets and obtain the lowest income.

As the main force of fund sales, banks have been repeatedly informed of violations.

In April 16th, the website of the CIRC published a notice on the case of Shanghai Pudong Development Bank and China property insurance against consumers' rights and interests.

According to the circular, there are many violations of consumers' rights and interests by the Pudong Development Bank in the privately sold products sold by agents.

Also in 2019, the Wuhan branch of Everbright Bank and Bank of communications Wuhan Wuchang branch had taken corresponding regulatory measures by the Hubei securities regulatory bureau for violation of the fund's sales process.

Among them, the Wuhan branch of Everbright Bank has some employees who have not obtained the qualification of the fund sales business to engage in the fund sales business; when the sales fund product is not fully disclosed to the individual ordinary investors, the product risk and appropriateness match opinions exist, and there exists the behavior of selling the fund in the form of physical delivery; and fails to complete the supervision report of the fund sales business according to the regulations.

The violations of Wuhan branch of Wuchang Bank of communications include providing investors with a definitive judgement on uncertain matters, and offering investors the risk level that is higher than their risk tolerance.

"A lot of fund companies have been asked by the regulators for self-examination because of the irregularities in sales. Recently, it is obvious that the compliance requirements within the company are more and more stringent." A large public fund market person told the twenty-first Century business reporter.

Regulatory measures continue to be overweight

In recent years, regulatory actions have been carried out by regulators to implement investor protection, and regulations on financial sales are becoming more and more clear.

For example, in February last year, the securities and Futures Commission issued the "Regulations on the supervision and management of securities investment fund sales institutions (Draft)" (hereinafter referred to as the "sales method") and the supporting document "the Provisional Regulations on the management of publicity and recommendation materials for public investment funds".

The "sales method" is the further revision and improvement of the securities investment fund management measures issued by the SFC in 2013, and has adjusted the names of the regulations in the light of the latest amendments.

In fact, the "securities investment fund management measures" is the supporting rules of the Securities Investment Fund Act. It was first issued in 2004 and has been amended two times in 2011 and 2013.

People close to the regulators pointed out that since the implementation of the management measures, they have played an important role in standardizing the sales order of public funds and protecting the legitimate rights and interests of investors. At present, the public fund marketing business has initially built a diversified sales channel covering the field, offline and direct selling, and the individual investor group has been growing. The financial effect of the inclusive financial industry has initially emerged. With the development of the industry, some of the previous measures have not been able to meet the needs of the practical development, and need to be adjusted urgently.

In the "sales method", the SFC has proposed pertinent norms for the new problems emerging in the current fund sales, such as "stable performance", "excellent performance" and "top ranking". It is easy for investors to ignore risks.

It is worth noting that, in view of the hot new sales mode in the market of WeChat group and friends circle, regulators are also adjusting and making up policy loopholes to standardize the development of the industry.

For example, in the notice, it is clear that the Internet should not be used for improper financial marketing activities.

In twenty-first Century, an investigation by the economic news reporter found that many sales staff of financial institutions existed in the circle of friends and WeChat group to distribute related information marketing activities, including product sales and sales promotion, hunger marketing, and illegal publicity products, and so on.

Moreover, in the first quarter of this year, when the "explosive fund" was frequent but behind the marketing chaos, the regulatory authorities also issued a regulatory briefing on "strictly regulate the publicity and promotion activities to promote the healthy development of equity funds", and strengthened the internal control compliance of the fund companies in the process of product promotion.

Among them, we should advocate long-term investment and professional compliance, and strictly regulate publicity and recommendation. For example, we should not emphasize the fund-raising ceiling and the rationing arrangement of fund products with different fonts, and increase the size of the brand names. We should not conduct marketing propaganda as a sales theme, that is, to regulate the phenomenon of "hunger marketing" that the fund companies are keen to emulate in the near future.