According to the news on the website of the CBRC on April 29, the CBRC has formulated the measures for the management of internal control of wealth management companies, which will solicit opinions publicly from April 29, 2022.
The Measures specify the regulatory requirements of the financial management company in terms of internal control system, product design and duration management, investment and transaction system process, key personnel management of important posts, related party transaction management and risk isolation from the parent bank.
The person in charge of relevant departments of the CBRC stressed that the issuance and implementation of the measures in the new period and new stage of the transformation and development of wealth management companies is conducive to unifying the regulatory standards of similar asset management businesses, enhancing the concept of rule of law and compliance awareness of wealth management companies, establishing and improving the internal control and compliance management system, and promoting the formation of a good development ecology of the wealth management industryP align = "center" fill the gap in the internal control management system of wealth management companies
According to the latest data from the China Banking and Insurance Regulatory Commission, a total of 29 wealth management companies have been approved for construction, of which 25 have been approved for business. By the end of March, the total balance of financial products of banks and financial management companies was 28.4 trillion yuan. Among them, the product balance of wealth management companies is 17.3 trillion yuan.
Dong ximiao, chief researcher of Zhaolian finance, said that at present, the product balance of wealth management companies accounts for 61% of the bank's wealth management market, and has become the most important supplier in the wealth management market. It is of great significance to formulate the internal control management measures of financial management companies and strengthen and improve the system construction. It helps to fill the system gap of internal control management of financial companies, promote financial companies to improve the internal control system, and ensure the compliant operation and sustainable operation of financial companies.
The aforementioned person in charge stressed that financial management companies are in a critical period of "clean start", and there is an urgent need to build an internal control and compliance management system suitable for their own business scale, characteristics and risk status, so as to provide a solid guarantee for legal compliance and stable operation. In addition, financial companies need to further build a risk separation wall in terms of personnel, capital, investment management, information and systems, so as to improve their independent operation abilityP align = "center" strengthen product design and duration Management
In terms of strengthening the entrusted management responsibilities of wealth management companies, the measures require wealth management companies to formulate a comprehensive, systematic and standardized internal control system for various business activities and management activities, and conduct a comprehensive evaluation at least once a year.
The measures proposed to strengthen product design and duration management. It is required to strictly implement the internal approval procedures before the issuance of financial products, continuously track the changes of risk monitoring indicators of each product, carry out stress testing and take effective measures in time.
At the same time, improve the investment and trading system and process. It is required to reasonably divide the investment authority according to the principle of minimum authority, and establish a continuous evaluation and feedback mechanism for investment authority. Clarify the audit standards, decision-making process, risk control measures and post investment management requirements for different types of asset investment. Improve the whole transaction process management system, and effectively identify and control relevant risks.
In terms of strengthening the management of key personnel in important posts, the measures put forward that the post responsibility system and incompatible post separation measures should be implemented, and it is emphasized that the uniformly configured communication tools should be used in investment transactions, and the traces should be monitored.
The measures also require strengthening risk isolation from the parent bank. Financial management companies are required to conduct independent examination and approval and investment decisions for each investment. Comprehensively and accurately identify related parties, establish and improve the internal evaluation and approval mechanism of related party transactions.
For wealth management companies, Dong ximiao believes that the next step should be to clarify and refine relevant regulations and realize management isolation, business isolation, reputation isolation, personnel isolation and information isolation with the parent bank, which will not only help the stable operation of wealth management companies, but also promote the orderly innovation of wealth management companies and better protect the interests of investorsP align = "center" wealth management companies should set up a chief compliance officer
The measures require that a wealth management company should set up a chief compliance officer at the senior management level. Be responsible for supervising and inspecting the construction and implementation of internal control, and can directly report to the board of directors and regulatory authorities, so as to give better play to its role of supervision and balance.
establish personnel information registration and publicity system . Implement the full registration system for securities investment, clarify the list of investors and traders, and publicize the employment information of investors in time.
"The personnel information registration and publicity system has been widely implemented in securities companies and fund companies." Dong ximiao believes that the establishment of personnel information registration and publicity system in wealth management companies is a concrete embodiment of promoting the consistency of regulatory rules for similar businesses, helping to promote the standardized practice of employees in wealth management companies, strengthen self-discipline, improve the professional level of employees, and avoid "making up the number" of personnel who do not meet the professional requirements.
The measures also require strengthen transaction monitoring, early warning and feedback . Implement fair trading and abnormal trading system, and proactively identify and prevent risks. The centralized transaction and transaction record system shall be implemented to ensure the separation of investment and transaction, and the traceability and inspection of transaction information.
strengthen information isolation . Establish information isolation and investor information use management system, and strictly prohibit illegal inquiry and disclosure of informationP align = "center" gradually establish the evaluation system of wealth management companies
According to the above person in charge, the measures adhere to the combination of internal supervision and external supervision to jointly promote financial management companies to improve the long-term mechanism of internal control.
The performance evaluation index of the company's internal control department shall be included in the performance evaluation system at least once a year. Second, the internal audit department of wealth management companies is required to carry out internal control audit evaluation at least every year to play a role of supervision and balance. Third, the regulatory authorities strengthened continuous supervision, gradually established the evaluation system of wealth management companies, and improved the effectiveness of supervision.
