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The fund-raising company opens an account with a natural person. The regulatory layer requires the securities firm to prevent risks.

March 14, 2019 03:47

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Summary
[The fund-raising company opens the account with the natural person. The regulatory layer requires the securities firm to prevent risks.] Recently, the China Securities Industry Association convened some securities companies to hold a special meeting on regulating the external access of information systems and preventing the risk of off-site fund-raising. Relevant regulators pointed out at the meeting that it is necessary to profoundly reflect on and learn from the lessons of abnormal fluctuations in the stock market in 2015. The sales department and employees must not facilitate the off-site fund-raising. On March 7, the Guangdong Securities Regulatory Bureau convened a meeting with the person in charge of the relevant securities business department of the jurisdiction, and made clear requirements for the securities operation institutions to prevent the risk of off-site fund-raising, and prohibited cooperation with various fund-raising institutions to conduct business. (Daily Economic News)

Recently, the China Securities Industry Association called a partBrokerConvene a special meeting on standardizing the external access to information systems and preventing the risk of off-site fund-raising.

Relevant regulators pointed out at the meeting that it is necessary to profoundly reflect on and learn from the lessons of abnormal fluctuations in the stock market in 2015. The sales department and employees must not facilitate the off-site fund-raising. On March 7, the Guangdong Securities Regulatory Bureau convened a meeting with the person in charge of the relevant securities business department of the jurisdiction, and made clear requirements for the securities operation institutions to prevent the risk of off-site fund-raising, and prohibited cooperation with various fund-raising institutions to conduct business.

The "Daily Economic News" reporter survey found that many offline fund-raising companies now use the method of opening accounts with natural persons to avoid the risks of being investigated. In addition, after the market adjustment last Friday, many fund-raising companies began to actively reduce leverage, from 10 times to 5 times before, while raising the threshold for fund allocation.

A funded company has lowered leverage

The reporter noted that on March 7, the Guangdong Securities Regulatory Bureau convened the person in charge of the relevant securities business department of the jurisdiction to understand the patterns, targets, trends, etc. of the off-exchange funds held by the securities management institutions, and to prevent the securities management institutions from going out of the field. The risk of fund-raising puts forward clear requirements: First, it is forbidden to cooperate with various fund-raising institutions to conduct business. It is necessary to attach great importance to the market risks that may arise from off-market fund-raising, firmly establish a sense of compliance, and prohibit cooperation with the fund-raising institutions in any form to conduct business. It is necessary to improve the account management system, strengthen customer identification and customer return visits, and strictly enforce the brokerage business.Margin financingRequirements for the appropriate management of business investors; second, to strengthen the monitoring of abnormal transactions and technical system security. It is necessary to improve the risk management ability before and during the event, and effectively monitor the abnormal transaction of the account, and must not provide any convenience for institutions or individuals engaged in off-exchange fund-raising activities.

On the morning of March 8, Zhejiang Securities Regulatory Bureau held a symposium on compliance and risk management of securities brokerage business in the jurisdiction, and urged all securities institutions to enhance their awareness of compliance and control, consolidate internal control, plan ahead, and strictly implement securities brokerage and margin financing clients. Appropriate management, strengthen customer abnormal transaction management, do a good job in technical system security maintenance, and highlight the specific regulatory requirements for current securities brokerage business compliance risk management. Among them, it is particularly required to strictly prohibit participation in illegal over-the-counter fund-raising activities. It is necessary to attach great importance to the market risks that may arise from illegal over-the-counter allocations, take effective measures to identify and monitor suspected fund-sharing trading accounts, and prohibit any form of cooperation with illegal OTC fund-raising institutions or individuals to conduct business, and must not be used for illegal off-site distribution. Provide any convenience.

In addition, the 21st Century Business Herald stated that another brokerage firm confirmed that on March 12, a securities regulatory agency of a southern province called a person in charge of the securities branch of the jurisdiction and made a clear request for the risk of off-site fund-raising. Among them, securities institutions must not facilitate off-exchange fund-raising, and may not cooperate with the fund-raising institutions in any form; strengthen the management of employee practice, prohibit employees from participating in off-market fund-raising activities; strictly enforce investor suitability Management requirements; strengthen customer account management, strengthen customer identification and customer return visits, strengthen account abnormal transaction monitoring and reporting; in-depth investor education; earnestly do a good job of risk, guide investors to rational investment, prevent investment risks.

A salesman of a fund-raising company told reporters that after experiencing market adjustments last Friday, in order to prevent the “strong-flat” incident in 2015, the company has now reduced leverage, and for new-funded customers, leverage has been 10 times lower to the current 5 times.

Open an account with a natural person

According to the reporter's understanding, a private placement in Guangdong recently found a fund-raising company in the private fundraising group, involving an amount of tens of millions of yuan. However, the accounts allocated by the fund-raising company in the previous period were not recovered. At present, there is not much quota for large-scale matching. It takes a day or two to get the money in place. In addition, the staff of the fund-raising company told the reporter that at present, the funds of many fund-raising companies (especially small-value accounts) have no quota, and the threshold for small-value accounts has also increased accordingly, from the previous 10,000 yuan (guarantee). 1:5), up to the current 20,000 yuan, and this small account is very tight, you need to wait in line.

According to the reporter's understanding, many fund-raising companies have opened accounts in the brokerage business and used their asset management system as a private placement institution, and through the system to carry out the fund-sharing business, some of which can be divided into multiple small accounts by means of sub-sectors. . In fact, some brokers are on the margins of compliance to provide asset management systems for use by fund-raising companies. The reason is that the fund-raising companies can bring more commissions to the brokers, and the account commissions opened by the fund-raising companies are generally high. The funded customers are more willing to operate in short-term because of interest. Therefore, some brokers and fund-raising companies can form an "interest alliance."

It is understood that before the stock market volatility in 2015, private equity institutions including quantitative private placements can access the brokerage trading system, and the development is also very fast, but the off-site fund-raising is also quietly accessed, and some are brought after the access. risk. Later, with the introduction of the “Opinions on Clearing and Rectifying Unlawful Engagement in Securities Business Activities”, brokers and most private equity firms cut off access to the trading system.

The reporter's investigation was informed that three years ago, due to a series of negative effects caused by the fund-raising business and programmatic transactions, brokers were required to stop accessing third-party interfaces. Since the access to the Hang Seng HOMS system was cut off, the fund-raising industry was once depressed. The needs of various institutional investors for warehouse management, staking, strategy, and quantification can only be achieved by the self-made system of brokers. However, this also allows the fund-raising company to find a new opportunity, which is to directly "official cooperation" with brokers.

Judging from the investigation of reporters in a number of entity fund-raising companies, the accounts of the current fund-raising companies are all accounts opened by natural persons, not the previous binning system accounts. It is worth noting that since the regulatory level requires one person and three households, this means that many natural persons need to be found to open an account, so this is also the reason why the current partially funded accounts are tight.

The reporter learned from the investor’s multi-party inquiry that the investor signed the loan with the fund-raising company.contractAfter that, you need to enter the deposit and capitalization interest into the account (personal account) designated by the fund-raising company as required, and then the fund-raising company will give the investor aStock accountThen, the risk control personnel of the fund-raising company will hand over the investor account and password. The trading software of these fund-raising companies comes from the brokerage side, and they are all accounts opened by natural persons. At present, most of the brokerage companies are involved.

According to industry analysts, if the regulatory layer releases the trading interface, it may impose higher requirements on brokers and private placements. For example, brokers with stronger risk control capabilities will be allowed to go ahead and conduct more rigorous audits of quantitative private placements. According to the CSRC's Interim Provisions on the Administration of External Access Management of Securities Companies' Transaction Information Systems, the draft of the Exposure Draft indicates that not all private placement institutions can access the brokerage trading system, and access must meet three conditions: private placement.fundManager should be privateStock investmentFund manager; the scale of management products at the end of the last year is not less than 500 million yuan; the products accessed should be filed by the China Investment Fund Association.

(Article source: Daily Economic News)

                (Editor: DF380)

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