portfolio products, the robo-advisory services of many banks are about to be terminated. A reporter from Nanduwan Financial Society learned that starting from July 1, China Merchants Bank will suspend its Capricorn Intelligent Investment purchasing, position adjustment, performance display and other services. Customer redemption transactions will not be affected. At the same time, the Capricorn held by will not be affected. The name of the original combination of ZhiTou will be changed.
In addition to China Merchants Bank , Industrial and Commercial Bank of China and many other commercial banks have also recently issued service suspension notices for their robo-advisory products. ICBC stated that starting from June 30, it will terminate the AI investment agreement and stop subscription and position adjustment services. Customers of purchased products can conduct asset inquiries and product redemptions, but the products they hold will be automatically converted into component funds at the end of July.
Since the regulatory release of the "Notice on Regulating Fund Investment Advice Activities" in November last year, most smart investment advisory services and fund portfolio services on the market have been suspended. Previously, they included those carried out on third-party platforms and provided by fund companies or personal finance "big companies". The fund portfolio services provided by V” have suspended subscriptions and allow redemptions, and banks have also successively suspended the subscription functions of their smart investment services. It is obvious that banks are not "prepared" for regulatory guidance. As recently as early November last year, China Merchants Bank was still marketing the services of Capricorn Intelligent Investment.
Regarding the termination of smart investment advisory services by many banks, a public fund source told a reporter from Nanduwan Financial News: "It is part of the rectification of the fund investment advisory business. Although China Merchants Bank and ICBC have investment advisory licenses, the investment advisory services of major banks The consulting business is still being demonstrated.”
Since the launch of the investment consulting pilot in October 2019, fund investment consulting has attracted much attention, and three banks including China Merchants Bank and ICBC have also obtained pilot qualifications. Industry analysts believe that most of the investment advisory products of banks continue their existing intelligent investment advisory business. Investors can buy and sell multiple funds at one time according to the ratio recommended by the strategy. From the perspective of position adjustment, investors need to manually confirm, and they belong to a portfolio. The scope of product sales, but because there is no investment advisory license, or the underlying product types and the proportions of various products in the portfolio product configuration do not meet the requirements of the fund investment advisory portfolio, they have been generally removed from the shelves for rectification since November 2021.
One of China Merchants Bank’s “Capricorn Intelligent Investment” fund portfolio products
In order to implement regulatory requirements, many banks terminated their robo-advisory services
html On June 27, China Merchants Bank sent a text message notification to some customers, saying that the Capricorn Intelligent Investment business will start from July 1, 2022. Starting from today, services such as purchasing, position adjustment, performance display, and investment companionship will no longer be provided, and redemption transactions will not be affected. The China Merchants Bank App display will also undergo corresponding changes, and the name of the original Capricorn Investment portfolio held by customers will be changed. In addition, the name of the original combination will also be changed, and the relevant interface of holding will be modified accordingly.public information shows that in 2021, Capricorn Investment has covered more than 8,000 funds in the market, providing customers with services such as reasonable allocation and timely position adjustment. On the interactive page of Capricorn Intelligent Investment, three portfolio products are displayed: a stable return portfolio, a flexible allocation portfolio, and a bull-bear crossing portfolio. The portfolio contains multiple fund products. Customers can purchase the funds in the portfolio with one click. Subsequent adjustments also require manual confirmation by the customer.
In December last year, Capricorn Intelligent Investment suspended the purchase function and stated that it was in the process of standardizing and transforming Capricorn Intelligent Investment and would suspend the purchase function. The redemption and position adjustment transactions of the original position customers will not be affected, and there is a risk that it will not be able to continue to provide services in the future. .
At that time, China Merchants Bank stated that the move was to comply with regulatory requirements, but the redemption and position adjustment transactions of original position customers would not be affected, and existing customers could continue to hold. As of the time the purchase function was suspended, the system had served more than 200,000 customers, and its cumulative sales exceeded 14 billion yuan. In the next six months, China Merchants Bank’s Capricorn Intelligent Investment business will cease services.
ICBC’s AI Investment will terminate its services starting from June 30. On June 25, ICBC issued the "Notice on the Termination of the AI Investment Agreement". In order to implement regulatory requirements and in accordance with relevant agreements, the AI Investment Agreement will be terminated and subscription and position adjustment services will be stopped on June 30, 2022.
ICBC announced the termination of the AI investment agreement
ICBC stated that if customers who hold positions choose to continue to hold AI investment products, they will provide asset inquiry and product redemption services through the AI investment section of mobile banking.At the same time, the AI investment products held by customers will be automatically converted into component funds at the end of July. At that time, the original AI investment product package redemption service will be upgraded to subscription , redemption and inquiry services for any single component fund.
Specifically, ICBC stopped serving AI investment products, including AI index, AI intelligent investment and AI strategy. Taking the AI index as an example, it includes 2 fund portfolios, one of which contains 24 public funds, all of which are Stock type. However, the subscription services for these products will be suspended on December 4, 2021. At that time, the redemption and position adjustment transactions of existing customers will not be affected.
In addition, many commercial banks have also suspended smart investment advisory services. China CITIC Bank announced on May 30 that according to the "Notice on Regulating Fund Investment Advice Activities" issued by the regulatory authorities, the classic combination ZXZT series will suspend services on June 30. China Construction Bank’s “Long Zhi Investment” notified that in accordance with regulatory requirements, Long Zhi Investment’s portfolio will be adjusted and purchases, fixed investment contracts and additional functional services will be suspended.
The underlying configuration of the portfolio product may not meet the requirements, and the specific business is still being demonstrated.
In October 2019, the China Securities Regulatory Commission issued the "Notice on Piloting the Investment Consulting Business of Publicly Offered Securities Investment Funds" (hereinafter referred to as the "Pilot Notice"). In the following two years, the pilot institution camp expanded in batches, and banks such as China Merchants Bank and ICBC have obtained fund investment advisory pilot qualifications.
On the other hand, the supervision has issued notification documents many times to improve and standardize the pilot business.
In November 2021, some institutions received the "Notice on Regulating Fund Investment Advice Activities" issued by the regulator, which includes the business definition of fund investment portfolio strategy advice activities, as well as the corresponding standardized rectification arrangements.
Specifically, institutions that do not have fund investment consulting business qualifications are not allowed to provide fund investment portfolio strategy investment advice, are not allowed to provide specific fund composition ratio suggestions in the fund portfolio, are not allowed to display the performance of the fund portfolio, and are not allowed to provide position adjustment suggestions.
In addition, the main body of business development is a fund sales agency; the underlying funds are fund products sold by the fund sales agency; the service targets are limited to the fund sales business customers of the agency; no separate contracts are signed with customers for providing fund investment advice; no separate contracts are allowed for providing fund investment advice; Provisions on separately charging fees for providing fund investment advice services.
At the same time, China Fund Investment Association released the "Guidelines on the Content and Format of Investment Consulting Service Agreements for Publicly Offered Securities Investment Funds (Draft for Comments)", which includes the interpretation and specifications of all aspects of fund investment consulting business, and proposes fund investment consulting services: "Fund investment advisory institutions accept the entrustment of customers and provide customers with fund investment portfolio strategy suggestions in accordance with the agreement."
China Merchants Bank's Capricorn Intelligent Investment System was launched around the beginning of 2017. Since then, many banks have followed up and launched intelligent investment advisory services. As of now, Most of the services provided by banking channels are fund portfolio products. Zhu Yadi of
Puyi Standard Research Institute said that robo-advisors in the traditional banking industry mainly use public funds as the underlying assets, and carry out portfolio allocation according to the investment period and risk preference selected by the customer, enabling one-click purchase, position adjustment and redemption. The banks currently launching smart investment advisory include China Merchants Bank, Industrial and Commercial Bank of China, Bank of China, Shanghai Pudong Development Bank, China CITIC Bank, Industrial Bank, China Guangfa Bank, Ping An Bank, etc.
CICC Monetary and Financial Research Zhang Shuaishuai and Zhou Jiming wrote that fund portfolio is a relatively broad term from the product perspective, and its meaning has changed with the gradual introduction of regulatory policies. Before the regulatory notice in November last year, fund portfolio was a simple term. In the fuzzy area between fund sales and fund investment consulting, the supervision and development of strategy construction, sales services, etc. tend to be more simple fund sales; later they were included in the scope of fund investment consulting.
The aforementioned article also pointed out: "Most of the bank's investment advisory products continue its existing robo-advisory business. Investors can buy and sell multiple funds at one time according to the ratio recommended by the strategy. From the perspective of position adjustment, investors need to manually confirm. It belongs to the category of portfolio product sales, but because it does not have an investment advisory license, or the underlying product types and the proportions of various products in the portfolio product configuration do not meet the requirements of the fund investment advisory portfolio, it has been generally removed from the shelves for rectification since November 2021. "
“Recently, the previous fund portfolio business that did not meet the requirements for “investment advisory business” was removed from the shelves, which is part of the rectification of the fund investment advisory business. Although China Merchants Bank and ICBC have investment advisory licenses, the investment advisory business of major banks is still under review. "A public fund channel source told a reporter from Nanduwan Financial Society.
Written by: Nanduwan Financial News reporter Ye Linfang
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