New sales regulations are implemented, financial management changes the face of all beings

With the formal implementation of the new regulations, some bank wealth management subsidiaries have successively adjusted their wealth management sales documents, and at the same time added a suggestive description and calculation basis in terms of performance comparison benchmarks. On June 28, a reporter from the Beijing Commercial Daily found that the adjusted banking institutions’ display methods for performance comparison benchmarks are still “various”, and many banks are still on the sidelines and have not yet adjusted in accordance with the new regulations. However, it is undeniable that the intention of the regulation to break the “just redemption” is very obvious, and the implementation of the new financial sales regulations will further test the bank’s investor education ability and the investor’s financial management level.

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Banks continue to adjust

In order to further standardize the marketing model of wealth management products and prevent disguised publicity of the expected rate of return, on May 27 this year, the China Banking and Insurance Regulatory Commission announced the “Interim Measures for the Administration of the Sales of Wealth Management Products by Wealth Management Companies” (hereinafter referred to as the “Measures”), which will be implemented on June 27. The transition period is 6 months.

With the formal implementation of the new rules on wealth management sales, banks and wealth management subsidiaries have gradually changed from a wait-and-see situation a month ago to optimize and adjust their wealth management sales methods.

For example, ICBC Wealth Management released a notice on the adjustment of the sales documents of wealth management products on June 25, showing that in order to implement the requirements of the Measures, the company will make supplementary amendments to the sales documents of wealth management products from the date of announcement, including but not Limited to: financial product investment agreement, sales (agent sales) agreement, financial product brochures, risk disclosure, investor rights and interests instructions and other documents.

Bank of Communications Wealth Management announced more detailed adjustments on the eve of the implementation of the new financial sales regulations: The company made a number of adjustments to a certain wealth management product contract under its management on June 28, including new changes after the risk disclosure statement and before the product specification. Add “Investment Agreement for Wealth Management Products”; add a reminder description of the performance comparison benchmark in the “Product Overview and Basic Information” and “Investment Operation” clauses in the product description section; add information on customer information protection in the investment agreement for wealth management products Terms etc.

It is worth mentioning that among the new financial sales regulations, the most discussed in the market is the prohibition on the “performance comparison benchmark”. How banks and wealth management subsidiaries can adjust has attracted much attention.

Performance comparison benchmark is a future-oriented investment indicator, which is the estimated return that the bank may obtain based on the past performance of the product or the historical performance of the same type of product.

The “Measures” clarified that “the performance comparison benchmarks that do not explain the reasons for the selection, the calculation basis or the calculation methods shall not be used, and the absolute values ​​and interval values ​​shall be used alone or prominently to show the performance comparison benchmarks”; at the same time, it is clearly stated that “the expected return rate of wealth management products shall not be promoted”.

An investor from a state-owned bank told a reporter from Beijing Commercial Daily that the bank has currently displayed benchmarks based on range or relative performance benchmarks, and provided the basis for calculations. The overall pressure for rectification is not great.

Various ways of display

Because there are no uniform regulations on how to determine and display the performance comparison benchmarks of wealth management products, the current market for banks and wealth management subsidiaries to display performance comparison benchmarks is “various.”

A reporter from Beijing Commercial Daily found that the adjusted performance comparison benchmark display methods of banks and their wealth management subsidiaries are specifically divided into the following three situations:

First, the absolute value or interval value is still displayed in the “Performance Comparison Benchmark” column of the sales interface, but it is prompted. For example, ICBC added a warning sign next to the performance comparison benchmark: “The performance benchmark of this product is an investment manager’s estimation of the product strategy that can achieve performance based on historical experience and the current market environment, and does not constitute any future revenue commitments for the product. .”

The second is to display the calculation basis of the performance comparison benchmark in the product manual. For example, CNCB Wealth Management’s product with a performance comparison benchmark of 3.7%, the specification shows that the performance comparison benchmark calculation basis: the product focuses on investment in assets such as credit bonds, and according to the current market environment, the desired return on assets is average Around 4.15%. At the same time, according to the needs of liquidity management and regulatory requirements, the allocation of high liquidity assets of not less than 5%. On the whole, after deducting the relevant taxes and fees, the center of the return rate for investors is expected to be around 3.7%.

The third is to use the annualized rate of return in the past 7 days, the annualized rate of return in the past 1 month, and the annualized rate of return since its establishment to visually display the rate of return, and show the basis for calculation. For example, a wealth management product of China Merchants Bank showed an annualized rate of return of 4.22% since its establishment, and a corresponding calculation formula was given.

Talking about the many ways to display the income of bank wealth management products, Zhou Yiqin, a senior financial regulatory policy expert, pointed out to a reporter from Beijing Business Daily that the new financial sales regulations do not require wealth management companies to use “absolute values ​​and interval values ​​to display performance comparison benchmarks.” It is this simple and intuitive way of expression, which essentially fails to explain the reasons for the selection of the performance benchmark, the basis for calculation or the method of calculation, which must be adjusted in the short term by each wealth management subsidiary. If you want to continue to use the “absolute value, interval value” display method, you must come up with a convincing basis for calculation. “Of course, I do not recommend using this range or value display method, because the market is always volatile. It is logically unreasonable to use a single value to calculate a result of future volatility. It is recommended to refer to public funds, Use the weighted index to display.” Zhou Yiqin said.

Understand the research institute senior researcher Bu Zhenxing also said that it is recommended to refer to the method of public offering funds, using the method of relative return, or the method of interval return, but there must be a clear calculation method.

A reporter from Beijing Commercial Daily noticed that in the process of business development, existing bank wealth management subsidiaries have set a “performance comparison benchmark” with reference to the idea of ​​public offering funds.

For example, a product of China Post Financial Management shows in the product manual that the performance comparison benchmark of this product N=ChinaBond-Comprehensive Wealth (Total Value) Index Return Rate. The index’s annualized rate of return in 2017, 2018, 2019, and 2020 were 0.28%, 8.16%, 4.42%, and 3%, respectively, and the four-year average annualized rate of return was 3.96%.

part is still on the sidelines

It is worth mentioning that during the investigation process, a reporter from Beijing Commercial Daily found that many banks are still on the sidelines and have not yet made adjustments in accordance with the new regulations. For example, some banks are still showing absolute absolutes in the performance comparison benchmark. Numerical value or interval value; although some banks added warning signs next to the performance comparison benchmark, they did not display the specific measurement method of the performance comparison benchmark in the product sales interface and product manual. A person from a bank in Beijing also told reporters that since the new regulations, the bank’s past product performance comparison benchmark display method has not been adjusted and changed.

Industry insiders pointed out that both new products and surviving products need to be adjusted to the new regulation of standard financial sales, but there are still many difficulties in this process.

Bu Zhenxing said that the current stock of bank wealth management products is relatively large, and at the same time, customer acceptance is low. The new regulations set a six-month rectification period, which needs to be adjusted gradually.

“Some wealth management products have only completed the superficial net worth transformation, but the measurement method is not perfect; in addition, the use of single or interval values ​​to display performance comparison benchmarks caters to investor preferences, and some institutions worry that the presentation of complex performance comparison benchmarks will not be easily affected. Investors understand.” said Liu Yinping, an analyst at Rong360 Big Data Research Institute.

Zhou Yiqin further pointed out that the performance benchmark is the most intuitive and important marketing display for customers, which affects the whole body. Therefore, the bank is still very cautious and will not rush to adjust the performance benchmark expression. The main problem of the current banks is that there is a relatively strong wait-and-see sentiment. Banks that adjust sooner may face customer incomprehension and loss. Therefore, under this prisoner’s dilemma game, many banks will eventually have to delay until the last moment. Adjustment.

In order to attract investors, there have always been problems in the market that publicize yields in disguise and mislead investors’ behavior. From the “expected rate of return” to the “performance comparison benchmark” to the “no absolute value or interval value display performance comparison benchmark alone or prominently”, the intention of supervision to break the “just exchange” in the sales promotion of wealth management products is very obvious. The implementation of the new financial sales regulations further tested the bank’s investor education capabilities and the level of investor financial management.

Liu Yinping pointed out that after the transformation of the net value of wealth management products, investors are required to have higher levels of financial management and risk prevention awareness. Investors need to be able to understand the manuals of wealth management products, especially some key descriptions, including risk levels, investment targets, and performance. Comparison basis, handling fee, deadline/opening period, etc. Beijing Commercial Daily reporter Meng Fanxia Ma Di

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