The pilot expansion of fund investment adviser capacity was approved by 7 securities companies and 2 banks

category:Finance
 The pilot expansion of fund investment adviser capacity was approved by 7 securities companies and 2 banks


Five fund companies, including Harvest Fund, Huaxia Fund, e fund, South Fund and China Europe Fund, have become the first pilot institutions of this business. Three third-party fund sales companies, tengan fund, Zhuhai yingmi fund and ant (Hangzhou) fund, also completed the pilot filing last year.

On February 28, the Securities Times reporter learned that at least seven securities companies, including Galaxy Securities, CICC, CSCI securities, Guotai Junan Securities, Shenwan Hongyuan securities, Huatai Securities, and Guolian securities, had received the regulatory call notice, and would receive the no objection letter officially issued by the CSRC recently, that is, they formally obtained the pilot qualification of fund investment advisory business.

It is understood that as early as 2018, the CSRC began to prepare new rules for investment advisers. At that time, several leading securities companies had communicated with the regulatory authorities on relevant pilot licenses, but it was not until the notice of October 25 last year was issued that the declaration of securities companies began to accelerate.

Since the issuance of the notice, we have been busy drafting plans, which are basically designed in accordance with the provisions of the notice. For example, it requires pilot institutions to establish a special investment decision-making committee at the company level. We have all made corresponding designs, and we will start to set up as soon as we get the qualification. A broker who completed the final defense earlier told reporters.

Compared with the securities companies, although the declaration of bank related qualification is later, it also obtains the pilot qualification of fund investment adviser in the same batch with the earlier declared securities companies.

Reporters verified that China Merchants Bank and Ping An Bank will receive the letter of no objection officially issued by the CSRC in the near future, becoming the first batch of commercial banks to obtain the pilot qualification of fund investment and consulting business. However, as of the time of publication, the two banks did not respond formally.

In addition, ICBC is also expected to be one of the first pilot banks, but the reporter failed to confirm the news from the relevant people of ICBC.

When is the fastest landing time?

Some securities companies believe that the preparation after obtaining the pilot qualification will involve the reconstruction of some systems, the adjustment of specific personnel and organizational structure. Therefore, it will take a while for the scheme to be implemented. As the business chain of wealth management business is far longer than the simple transaction business, involving the companys retail headquarters, financial products, wealth management department and other departments, business departments, branches and so on, it will take time for many elements to be matched.

However, some brokers said that the system had been prepared for a long time and they were confident that it would be launched soon after it was approved. When is the fastest time to go online? Maybe it will be soon depending on the system preparation of each family. There is a brokerage business related to such estimates.

According to many interviewees from the bank, there are not many banks that are able to apply for the pilot qualification of fund investment adviser based on different customer base, investment adviser team and investment research capacity-building progress. Among them, whether to build a team of investment advisers who mainly serve high net worth customers and have independent investment ability is an iron threshold for most small and medium-sized banks.

Great strides in wealth management

The fund investment adviser may accept the entrustment of the client, make the decision of the specific fund investment variety, quantity and trading opportunity on behalf of the client according to the portfolio strategy agreed with the client, execute the transaction application such as fund product purchase, redemption and conversion on behalf of the client, and carry out the management fund investment advisory service.

This has broken the shackles that previously restricted the securities companies to carry out account management and investment advisory business. Before that, securities companies charged Trading Commission or follow-up Commission. The performance appraisal of investment advisers mainly depends on the sales revenue brought by the products sold. This will lead to the inconsistency between the interests of investment advisers and those of customers. In order to earn income, investment advisers recommend products that are not suitable for customers. At the same time, this charging mode also hinders the transformation and upgrading of securities companies from brokers providing simple channel services to modern investment banks providing comprehensive wealth management services.

The approval of the investment consultant pilot will have a positive effect on the overall transformation of wealth management of large securities companies.

After the launch of the pilot project, the investment consulting institutions that have obtained the pilot qualification will no longer be limited to providing advice, and the pilot institutions can no longer charge transaction commission, but consulting fees. For example, the most mainstream in the United States is to charge according to AUM (management of customer assets), as well as fees based on investment performance, fees based on consultation, etc. In this way, the wealth management of securities companies has gradually changed from product sales to asset allocation, and the corresponding assessment methods have been expanded from the guidance of trading commission income to the direction of increasing the value of customer assets. The same is true of banks. Although the risk tolerance of customers is not as good as that of securities companies, the advantages of banks lie in the large number of high net worth customers and the more comprehensive grasp of customer asset data. A number of interviewees also agreed that commercial banks are interested in the pilot qualification of fund investment, which can better operate and serve high net worth customers, so as to achieve higher middle income contribution and scale contribution. A general manager of the wealth management department of a medium-sized bank also told reporters that after the bank obtained the pilot qualification of investment advisers, the role of online intelligent investment advisers can also be better played, especially in exploring how to establish business relations with customers. Source: responsible editor of Securities Times: Ren Hui ufe63 nbj9607

After the launch of the pilot project, the investment consulting institutions that have obtained the pilot qualification will no longer be limited to providing advice, and the pilot institutions can no longer charge transaction commission, but consulting fees. For example, the most mainstream in the United States is to charge according to AUM (management of customer assets), as well as fees based on investment performance, fees based on consultation, etc. In this way, the wealth management of securities companies has gradually changed from product sales to asset allocation, and the corresponding assessment methods have been expanded from the guidance of trading commission income to the direction of increasing the value of customer assets.

The same is true of banks. Although the risk tolerance of customers is not as good as that of securities companies, the advantages of banks lie in the large number of high net worth customers and the more comprehensive grasp of customer asset data.

A number of interviewees also agreed that commercial banks are interested in the pilot qualification of fund investment, which can better operate and serve high net worth customers, so as to achieve higher middle income contribution and scale contribution.

A general manager of the wealth management department of a medium-sized bank also told reporters that after the bank obtained the pilot qualification of investment advisers, the role of online intelligent investment advisers can also be better played, especially in exploring how to establish business relations with customers.