At the end of the year of the ox, some securities companies were punished for fund sales business violations.
received the warning letter from Sichuan Securities Regulatory Bureau
four types of problems in fund sales business
On January 27, the CSRC website disclosed the decision of Sichuan regulatory bureau on Issuing warning letter to Chuancai Securities Co., Ltd.
After investigation, Sichuan regulatory bureau found the following problems in the fund sales business of Chuancai Securities Co., Ltd.: first, the centralized and unified management of the access of the sold fund products is not in place; Second, the language of individual publicity and promotion materials is not standardized and has not been submitted for compliance review; Third, the qualification management of fund sales personnel is not in place; Fourth, the appropriateness management of on-site fund sales investors is not in place.
The above problems violate the provisions of paragraph 2 of Article 16, paragraphs 1 and 2 of Article 17, paragraph 2 of Article 26, paragraph 1 of Article 27 and paragraph 2 of Article 30 of the measures for the supervision and administration of sales institutions of publicly offered securities investment funds (Order No. 175 of the CSRC), It violates the provisions of item (2) of Article 15 of the Interim Provisions on the administration of publicity and promotion materials of publicly offered securities investment funds (CSRC announcement [2020] No. 59).
According to Article 53 of the measures for the supervision and administration of sales institutions of publicly offered securities investment funds, Sichuan regulatory bureau decided to take administrative supervision and management measures to issue warning letters.
Public information shows that Chuancai Securities Co., Ltd., established in July 1988, is a professional securities company approved by the China Securities Regulatory Commission and transformed into a whole by financial bond intermediaries. At present, Chuancai securities is jointly held by China Huadian Group Capital Holding Co., Ltd., Sichuan state owned assets operation and Investment Management Co., Ltd. and Sichuan Hydropower Investment and operation group Co., Ltd.
The business scope of Chuancai securities company covers traditional businesses and financial innovation businesses such as securities brokerage, securities investment consulting, securities underwriting and recommendation, securities self operation, securities asset management, financial consulting, securities investment fund sales, margin trading, consignment sales of financial products, etc.
stricter supervision on the appropriateness of fund sales investors
In fact, in the past month, a number of fund sales institutions have been intensively notified and punished by regulators for violations in the sales process.
Since the end of December last year, Bank Of China Limited(601988) Ningxia Branch, Citic Securities Company Limited(600030) Heilongjiang Branch, Harbin Bank and Longjiang bank have received regulatory fines one after another.
Two days ago, on January 25, Guangdong Securities Regulatory Bureau issued a decision on issuing a warning letter to Everbright Securities Company Limited(601788) (601788) Co., Ltd. Dongguan Nancheng Hongfu Road Securities Business Department.
“After investigation, your business department sells private securities investment funds that are not sold on a Everbright Securities Company Limited(601788) commission basis. The above behavior violates the provisions of Article 6 of the provisions on the administration of financial products of securities companies and securities investment fund management companies (CSRC announcement [2012] No. 34).” The CSRC said.
Guangdong Securities Regulatory Bureau requires it to attach great importance to the above problems, organize staff to effectively strengthen the study of securities laws and regulations, further strengthen internal control and prevent such incidents from happening again.
In many cases of violations, the inadequate management of the appropriateness of fund sales investors is the hardest hit area. According to the guidelines for the implementation of investor appropriateness management of fund raising institutions (for Trial Implementation) (hereinafter referred to as the guidelines), “investor appropriateness refers to that in the process of selling fund products or services, fund raising institutions sell fund products or services with different risk levels according to the risk tolerance of investors, and sell appropriate fund products or services to appropriate investors.”
Therefore, the industry believes that risk assessment seems simple, but it is actually a very serious thing. If fund sales institutions and service institutions do not understand the risk tolerance of investors and blindly recommend products, resulting in losses to investors, the seller’s institution may need to bear certain legal liabilities. Neither institutions nor investors want this to happen.
So how to determine the risk level of fund products? In accordance with the measures for the administration of the appropriateness of securities and futures investors and the guidelines for the implementation of the appropriateness management of fund raising institutional investors (for Trial Implementation), on the basis of comprehensive reference to product type, investment direction and investment scope, liquidity, maturity time limit, structural complexity, raising method and other factors, The risk level of products or services can be divided into different levels (R1 to R5) from low to high according to their risk level, so that investors and sales institutions can understand the risk attributes of products.
It is worth mentioning that the risk assessment results are not always the same. The sales agency will regularly require investors to conduct risk assessment again to ensure that the risk assessment results are updated in time, so as to measure the accurate risk rating of investors.
Of course, with the increase of investors’ age, income, investment knowledge and experience, investors’ risk tolerance will change accordingly. At that time, investors can re evaluate and modify the risk level by themselves.
