In order to promote the legal and compliant operation and sustainable and stable operation of wealth management companies, the CBRC issued the measures for the management of internal control of wealth management companies (Draft for comments) on the 29th.
The measures require financial 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. 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.
The measures require to improve the whole transaction process management system and effectively identify and control relevant risks. Strengthen the management of key personnel in important positions, implement the post responsibility system and incompatible post separation measures, and carry out investment transactions with uniformly configured communication tools and monitoring traces. At the same time, the measures require financial companies to strengthen the management of connected transactions and risk isolation, and conduct independent examination and approval and investment decision-making for each investment.
According to the measures, a financial management company shall set up a chief compliance officer to supervise and inspect the construction and implementation of internal control, and can report directly to the board of directors and regulatory authorities. Implement the full registration system for securities investment, clarify the list of investors and traders, and publicize the employment information of investors in time.
According to the data of the China Banking and Insurance Regulatory Commission, a total of 29 financial management companies have been approved for preparation, of which 25 have been approved for business. By the end of March this year, 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.
The person in charge of relevant departments of the CBRC said that as a new asset management institution with independent legal personality, it is necessary to build a comprehensive and effective internal control management system as soon as possible. The promulgation and implementation of the measures will help unify the regulatory standards of similar asset management businesses, enhance the concept of rule of law and compliance awareness of financial management companies, establish and improve the internal control and compliance management system, and promote the formation of a good development ecology of the financial management industry.
