Reported by reporter Xie Zhengguo, intern reporter Xi Wen
Recently, the relevant person in charge of the China Banking and Insurance Regulatory Commission stated at a press conference of the State Information Office that at the end of the first quarter of 2021, the bank's financial rectification has been over half before the end of 2021 Most banks will complete rectification. There are only more than five months left before the end of the transitional period of the new asset management regulations. While the rectification of the bank's wealth management stock is accelerating, the reporter noticed that the preparations for the establishment of some bank wealth management subsidiaries are progressing slowly.
China Guangfa Bank, Shanghai Pudong Development Bank's wealth management subsidiaries Guangyin Wealth Management and SPDB Wealth Management were approved for establishment on July 16 and August 12, 2020 respectively. Up to now, it has been 12 months and 11 months respectively. According to the Measures for the Administration of Wealth Management Subsidiaries of Commercial Banks, the preparatory period for the establishment of a wealth management subsidiary of a bank is 6 months from the date of approval. In addition to the time it takes to apply for extension and approval for opening business, the maximum period is 11 months. The above two companies have clearly "timed out."
The reporter consulted the two companies on the latest progress. The official customer service of Guangfa Bank replied to reporters that Guangyin Wealth Management is currently under construction and has not received any news of opening. A relevant person in the Shanghai Pudong Development Bank Office stated that "all the official announcements shall prevail."
The reporter noticed that the two banks mentioned above are major finesers and have been punished by the banking and insurance regulatory agencies more than once for violations of their wealth management business this year. Among them, Shanghai Pudong Development Bank just received a fine of 69.2 million yuan for "sky price" about ten days ago due to inadequate management of the issuance of wealth management products and other violations. In addition, in the past four quarters, Shanghai Pudong Development Bank's total wealth management complaints totaled 1,638, ranking first among the stock banks. Industry insiders said that the overall service quality of wealth management business in the banking industry is improving after rectification. Some banks have yet to improve their regulatory and management systems in terms of wealth management business compliance and user rights protection. This is also the true status of the industry.
Some banks' wealth management subsidiaries are making slow progress.
Wealth management subsidiaries are non-bank financial institutions engaged in wealth management business established by commercial banks. In December 2018, the China Banking and Insurance Regulatory Commission issued the "Administrative Measures for Wealth Management Subsidiaries of Commercial Banks",Make specific provisions on the access conditions, business rules, and risk management of wealth management subsidiaries. The person in charge of the relevant department of the China Banking and Insurance Regulatory Commission stated that in the next step, commercial banks can combine strategic planning and their own conditions, and in accordance with the principle of commercial voluntariness, to carry out asset management business through the establishment of wealth management subsidiaries. After a commercial bank develops its business through its subsidiaries, the bank itself will no longer carry out wealth management business (except for continuing to dispose of existing wealth management products). At the same time, wealth management subsidiaries should operate independently and be responsible for their own profits and losses to effectively prevent 's operating risks from spreading to the parent bank.
Soon on December 26 of the same year, the China Banking and Insurance Regulatory Commission formally approved the application for the establishment of wealth management subsidiaries by China Construction Bank and Bank of China, and many other commercial banks also stepped up the work of reporting wealth management subsidiaries. According to incomplete statistics, as of now, a total of 23 banks have been approved to establish their wealth management companies, including 6 state-owned banks, 10 joint-stock banks, 6 city commercial banks, and 1 rural commercial bank. Among them, China Guangfa Bank, Shanghai Pudong Development Bank, Minsheng Bank , Bohai Bank four banks' wealth management companies are still under construction. The approved preparation time is July 16, 2020, August 12, 2020, December 25, 2020, and May 11, 2021.
According to the "Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks", the establishment of a bank's wealth management subsidiaries requires two stages: preparation and opening. The preparatory construction period is 6 months from the date of approval decision. If the preparatory establishment fails to be completed on time, a report on the extension of preparatory establishment shall be submitted to the banking regulatory agency one month before the expiration of the preparatory establishment period. The preparatory construction extension shall not exceed one time, and the extension period shall not exceed 3 months. "The applicant shall submit an application for opening of business before the expiration of the time limit specified in the preceding paragraph. If the application is not submitted within the time limit, the preparation approval document shall become invalid and the deciding authority shall cancel the establishment permit." The application submitted to the banking regulatory agency shall be accepted, reviewed and decided by the banking regulatory agency. The banking regulatory agency shall make a written decision on approval or disapproval within 2 months from the date of acceptance.
In other words,Taking into account the application for extension, the longest period for the establishment of bank wealth management subsidiaries is 11 months. The above-mentioned four banks, China Guangfa Bank and Shanghai Pudong Development Bank, have obviously "timed out."
On July 23, the official customer service of China Guangfa Bank confirmed the above situation to reporters, and responded that Guangyin Wealth Management is still under construction and has not received any news of opening. Relevant persons in the Shanghai Pudong Development Bank’s office replied that “all the progress of the preparations is subject to official announcements.”
is a “big ticket”, and Shanghai Pudong Development Bank’s wealth management complaints rank first. The industry generally believes that commercial banks set up wealth management subsidiaries to carry out Asset management business is conducive to strengthening the risk isolation of bank wealth management business, and promoting the return of bank wealth management to the origin of asset management business; cultivating and strengthening the team of institutional investors, guiding wealth management funds to enter the real economy and financial markets in a legal and standardized form; promoting unified asset management products Regulatory standards to better protect the legitimate rights and interests of investors. The reporter noticed that the above-mentioned two banks that are preparing to establish wealth management subsidiaries still need to improve their institutional standards and management mechanisms in terms of wealth management business compliance and protection of users' rights and interests.
Among them, Shanghai Pudong Development Bank has just received a fine of 10 million yuan for "extraordinary price" issued by the supervision for violation of wealth management business. The fine announced on July 16 showed that the China Banking and Insurance Regulatory Commission carried out a special on-site inspection of shadow banking and cross-financial business of Shanghai Pudong Development Bank. The China Banking and Insurance Regulatory Commission imposed a fine of 69.2 million yuan on statutory procedures such as case filing, trial and deliberation, prior notification, and statement of defense opinions.
The violations involving financial management include failure to strictly implement the management of the list of financial investment cooperation institutions, the adjustment of income from mutual transactions of financial products, the use of financial funds to repay the bank's loans, the inadequate management of the issuance of financial products, and the equity category Wealth management products invest more than a proportion of non-equity assets, and public wealth management products hold more than a proportion of the market value of a single security.
Shanghai Pudong Development Bank said in an interview with Insight Finance reporter that the punishment is an administrative measure implemented by the supervisory authority after the inspection of the bank's relevant business in 2018-2019 in September 2019.After discovering the problems, the bank has adopted a number of rectification measures since 2019. On the one hand, it has revised business system specifications, improved management mechanisms, strengthened the construction of information systems, and accelerated the transformation of wealth management business; on the other hand, it has focused on key issues, standardized operating behavior, and improved Risk management and control capabilities, carry out serious accountability of relevant responsible persons, and strengthen warning education. At present, the relevant rectification work has been basically completed.
The reporter noticed that Shanghai Pudong Development Bank and China Guangfa Bank are both “regular customers” of fines. According to statistics, including personal fines, China Guangfa Bank received a total of 30 fines in the first half of 2021, with a total fine of 27.96 million yuan. Ranked fourth among joint-stock commercial banks; Shanghai Pudong Development Bank received a total of 39 fines during the same period, with a total fine of 22.81 million yuan. Ranked fifth among joint-stock commercial banks.
In the first half of the year, the two banks received more than one fine for violation of wealth management business. In terms of Pudong Development, in February 2021, Pudong Development Bank Hangzhou Yuhang Sub-branch was fined 500,000 yuan for providing financing through loans and wealth management in violation of regulations; in February, Pudong Development Bank Qiqihar Branch was fined 200,000 yuan for violations of the agency sales asset management plan. ; In March, the Jinan branch of Shanghai Pudong Development Bank was fined 400,000 yuan due to inadequate internal control and management of wealth management and sales.
In terms of GF, the two highest fines imposed by the bank in the first half of the year both involved wealth management services. On April 2nd, China Guangfa Bank Quanzhou Branch was fined a total of 14 million yuan by the Quanzhou Supervision Branch of the China Banking and Insurance Regulatory Commission. The relevant violations of laws and regulations include: illegally handling commercial acceptance bills business, illegally handling interbank wealth management business, and inadequate employee behavior management. Inadequate management of office space and unreal operating conditions. In addition, three related persons in charge were sentenced to administrative penalties prohibiting lifelong work in the banking industry. In the same month, China Guangfa Bank Ningbo Branch was fined another 2.2 million yuan. The violations involved "irregular development of wealth management and inter-bank investment business, and irregular product sales".
In terms of protecting the legitimate rights and interests of investors, SPD Bank ranks among the top in the industry in terms of complaints from wealth management consumers among the two banks. According to the analysis of consumer complaints issued by the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission, the reporter found that in the past four quarters, there were 1320, 1762, 767, and 899 complaints about the wealth management business of joint-stock commercial banks.Accounted for 4.6%, 4.7%, 2.4%, and 2.8% of the total complaints. The low proportion and the obvious downward trend indicate that the overall service quality of the joint-stock bank wealth management business has improved.
However, judging from the specific distribution of complaints, the differentiation of various banks is still very obvious. Among them, the number of complaints about the wealth management business of Shanghai Pudong Development Bank ranks among the top three joint-stock commercial banks for four consecutive quarters, and the complaints are more serious. In terms of the total number of complaints, Shanghai Pudong Development Bank's wealth management complaints in the four quarters totaled 1,638, ranking first among the leading stock banks and nearly twice the number of complaints from the second-ranked Ping An Bank (837 cases).
The reporter sent an interview letter to the office of Shanghai Pudong Development Bank regarding the preparation progress of the wealth management subsidiary and the compliance of the wealth management business. As of press time, no response has been received.
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