CFIC Introduction
◆ Industry experts said that a fair and transparent environment is conducive to the long-term healthy development of the asset management market, and the era of "strong credit disclosure" in the asset management industry is accelerating.
Original title: The regulator solicits opinions on the new regulations, and the asset management industry will welcome the "strong credit disclosure"
The phenomenon of "reporting good news but not bad news" and uncertain frequency of information disclosure of asset management products is expected to change. The reporter learned that the State Administration of Financial Supervision and Administration recently solicited opinions from some institutions on the new regulations on the disclosure of asset management products. Industry experts said that a fair and transparent environment is conducive to the long-term and healthy development of the asset management market, and the era of "strong credit disclosure" in the asset management industry is accelerating.
The new regulations are open for asset management products
According to the Administrative Measures for Information Disclosure of Asset Management Products (Draft for Comments) (hereinafter referred to as the "Draft") recently issued by the State Administration of Financial Regulation, the targets of the regulatory authorities include seven trust companies, eight wealth management companies, five insurance asset management companies, as well as the China Trust Association, the Insurance Asset Management Association of China, the China Banking Association, the China Trust Registration Co., Ltd., the Banking Wealth Management Registration and Custody Center Co., Ltd., and the China Insurance Asset Registration and Trading System Co., Ltd.
"Our company received the "draft for comments" issued by the competent department last week, and the relevant departments and leaders of the company are currently meeting to study, and the next step will be to actively cooperate with the solicitation of opinions, and combined with the company's own actual situation, study and deploy personnel for product information disclosure." A person in charge of a trust company in North China told reporters.
It is understood that the Consultation Paper clarifies that the products subject to the solicitation of opinions are applicable to trust, wealth management and insurance asset management products issued and managed in China.
"The new regulations clarify the specific requirements for information disclosure, which is of great significance for the high-quality development of the asset management industry." Du Yang, a researcher at the Bank of China Research Institute, told reporters that first, it will help investors to have a more comprehensive understanding of the risks and returns of asset management products, so as to choose more suitable products for investment; Second, it will help reduce information asymmetry, enhance market credibility and transparency, and further promote the healthy development of the asset management industry. Third, by clarifying the responsibilities and requirements of information disclosure, we will promote the standardized operation of market entities such as asset management companies, bank wealth management companies, and insurance asset management companies, reduce non-compliance behaviors and potential risks, and maintain the order of normal market operation and the legitimate rights and interests of investors.
According to Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, the new regulations make up for the shortcomings of the regulatory system for information disclosure of asset management and wealth management products, strengthen the standardized disclosure of information by asset management and wealth management institutions, help improve the standardization and transparency of products and operations, and promote asset management institutions to better perform investor suitability management. For investors, standardized and timely disclosure of wealth management product information will help reduce investors' decision-making costs and enhance investors' confidence. In the medium and long term, it will help promote the benign interaction between investment and financing, and the standardized and healthy development of the asset management industry.
Xinphi is moving towards standardization and standardization
The Consultation Paper specifies the relevant requirements for information disclosure during the offering period of a product, including the product's sales documents, product manuals and special matters, performance benchmarks, risk disclosure documents, notes on the rights and interests of product investors, product custody agreements, product offering announcements or reports, etc. At the same time, the information disclosure regulations for the duration of the product are clarified.
A senior asset management researcher in Beijing pointed out that the Consultation Paper further implements the requirements of the new regulations on asset management and makes up for the shortcomings of asset management information. In his view, the core of the asset management business lies in portfolio investment, net-worth management, and accurate information disclosure, which is very important for investors to make decisions and understand their own investment status.
It should be pointed out that the Consultation Paper also emphasizes the prohibition of sexual acts, including false records, misleading statements and material omissions, and promises of profits or losses in violation of regulations; Forecasting investment performance, etc.
"From the perspective of prohibited sexual acts, taking trusts as an example, there are similar prohibitive acts in the business promotion, and the new regulations only emphasize again." Yu Zhi, a researcher at the Yongyi Financial Trust Research Institute, believes that the biggest attraction of the Consultation Paper is the concretization of the requirements for information disclosure, and the information disclosure requirements and formats of various asset management institutions are consistent, so that investors can not only have a clearer understanding of market risks, but also independently choose institutions with excellent investment capabilities, and a fair and transparent market environment is conducive to the long-term development of the asset management market.
Pay attention to protecting investors' money bags
For a long time, mainland asset management products have had the problem of lack of standardization, uniformity and transparency in information disclosure. In addition to the inconsistent disclosure channels, there are also differences in the performance display range, net value disclosure frequency and valuation method of similar wealth management products. "Since its establishment, the annualized rate of return, the annualized rate of return in the past month, the annualized rate of return in the past six months, and the seven-day annualized rate of return since its establishment...... Which range is favorable to their own products, showing that the yield significantly raises investors' psychological expectations. A market source from a state-owned bank said frankly.
According to the above-mentioned senior asset management researcher in Beijing, there were already requirements for the performance benchmark of wealth management products last year, and the information disclosure of trust products is relatively not standardized enough, while wealth management and insurance asset management products are more standardized, but they still need to comply with the new regulations. "For example, trust products should improve information disclosure in terms of risk warnings, standardize the display of performance benchmarks, and wealth management products also need to improve their performance display. Asset management institutions also need to develop and design products from the perspective of safeguarding the rights and interests of customers, disclose the information required for customers' investment decisions in a concise and comprehensive manner as much as possible, and enhance the uniformity of information disclosure to facilitate customers to compare the products of different asset management institutions. ”
"The Consultation Paper reveals that the asset management industry will usher in a signal of 'strong credit', and various asset management institutions will pay more attention to protecting investors' money bags in the future." Du Yang suggested that, first, product information should be disclosed in strict accordance with the regulations to ensure the comprehensiveness and accuracy of the information and reduce information asymmetry; The second is to establish a sound risk management system, strictly control product risks, and improve risk prevention and control capabilities; Third, it is necessary to improve compliance awareness, put an end to illegal operations and improper commitments, and ensure that products are compliant and legal; Fourth, investor education should be strengthened, investors' risk identification ability and rational investment awareness should be improved, and investors should be helped to make rational investment decisions; Fifth, establish a sound investor protection mechanism, handle investor complaints in a timely manner, and safeguard the legitimate rights and interests of investors.
Source of this article: Xinhua Finance and Economics, Economic Information Daily
Author: Zhong Yuan
WeChat editor: Guan Qiao
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