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The supervision of the fund industry has become stricter.
It is reported that some fund companies have recently been required to carry out comprehensive self inspection on compliance risk control and submit relevant self inspection reports.
In response, a fund company official told the 21st Century Business Herald reporter that the fund company was required to conduct self inspection recently, but no official document was issued this time. "A meeting was held to let everyone learn advanced experience, and the main direction of self inspection is compliance, employee behavior management and other aspects."
According to 21st Century Business Herald, "strict supervision" has become the norm of the fund industry this year. Some fund companies interviewed said that this year's compliance was stricter than before, and compliance actions were also significantly more frequent than in previous years, such as regular issuance of documents, organization of learning, training and examinations. Even if some fund companies did not receive regulatory requirements, they had to conduct quarterly audit, combing and self inspection.
Photo source: Chen Guoli Self inspection of fund company
Recently, it was reported in the market that a number of fund companies have received a request for self inspection, that is, to conduct a comprehensive self inspection on compliance risk control since 2023. At the same time, these fund companies are also required to submit relevant self inspection reports.
In this regard, many insiders revealed to the 21st Century Business Herald that fund companies have recently carried out self-examination.
According to the industry information, the fund company's self inspection includes: the company's internal organizational structure, compliance management system, comprehensive risk management system, information system security, investor rights protection, etc.
Among them, the company's internal organizational structure includes the operation of the board of shareholders, the board of directors and the board of supervisors, the qualification and performance of shareholders, the qualification and appointment and removal of directors, supervisors and senior officials, and the internal and external part-time jobs of relevant personnel.
Compliance management system construction, including business and compliance internal control system construction, transaction personnel behavior control, salary deferral, employees' investment declaration management, investment follow-up and assessment mechanism implementation, internal accountability, etc., and administrative/criminal punishment, administrative supervision measures and self-discipline measures taken by the company and all employees.
Comprehensive risk management system construction, including the construction and implementation of various risk management systems, risk monitoring, analysis and response, risk events occurred within the company, implementation of investment research internal control system, risk disposal of default products, etc.
Information system security, including business data and security assurance, regular information system security assessment, stress testing and emergency drills.
The protection of investors' rights and interests includes the construction and implementation of investor suitability system, investor education, etc.
According to the reporter, since this year, the pressure of "strict supervision" of fund companies has continued to grow.
The fund company interviewed said that as early as late March this year, several public fund companies in Beijing and Shanghai were cross checked by the non local securities regulatory bureaus, including but not limited to daily business, integrity publicity, training, party and government building.
A fund company official told the reporter, "Recently, we have been more strict in compliance. We have two articles, training and learning in three days, and then we have to take an exam. This strict compliance requirement involves all departments. And this year, compliance is more strict than before, and compliance actions are also significantly biased."
A person from the brand department of a fund company said that his department carried out a lot of self-examination on credit rating, expenses and other aspects.
A person from another fund company said, "This time, we didn't receive a notice of comprehensive self inspection, but the company will conduct audit and self inspection every quarter."
He explained, "As a medium-sized fund company, the supervision bureau in the region has strict requirements on the inspection of our company. The company received a comprehensive inspection by the local supervision bureau in the second half of last year. So far this year, the company has not received the notice of comprehensive self-examination, but it does require self-examination and admission inspection for individual businesses, such as complaints, indicator change risk, etc. "
A person from a Shanghai fund company said that recently some peers were asked to self inspect, but the company did not receive notice. It is reported that the content of self inspection should be a relatively daily topic, not involving special events.
According to his introduction, "usually after a new regulation comes out, everyone will be required to do a good job of self inspection according to the new regulation. This kind of self inspection is very routine, mainly to serve as a reminder."
A person from another large fund company said, "Some fund companies were inspected on the spot before, but in fact, the company will have some self inspection actions on a regular basis."
Frequent compliance problems
In recent years, the fund industry has developed rapidly.
According to the latest data released by the China Securities Investment Fund Association, as of the end of the first quarter, there were 11800 public funds with a scale of 29.20 trillion yuan, which exceeded previous years.
In fact, the scale of public funds in 2023 has surpassed bank financing and become the "asset management brother".
However, there are still many compliance problems in the rapid development of the fund industry.
For example, on May 8, Cai Songsong, the former star fund manager of Noan Fund, Qu Quanru and Dong Boxiong held a court session on the case of "bribery of non state staff and bribery of non state staff".
This is not an individual case. According to incomplete statistics, there have been more than 20 cases in the fund industry involving the use of undisclosed information transactions to carry out convergence transactions or bribery, which has caused fund managers to be convicted, with a bad impact.
In addition to the fund manager's violation, the fund trust "oolong incident" is also often concerned by investors.
Among them, in the disclosure of the 2023 annual report, the most concerned one is the selected growth of Fuguo Tianhui managed by Zhu Shaoxing, the star fund manager of Fuguo Fund. According to the annual report of the fund, as of the end of last year, Zhu Shaoxing's share of this product was 0, and Zhu Shaoxing is suspected of "one click clearance" of his own products.
Subsequently, Wells Fargo Fund issued a batch of correction announcements for its products. The announcement said that due to the data extraction criteria, some contents of the "Fund Unitholders Information" in some fund annual reports were corrected. The corrected 2023 annual report shows that Zhu Shaoxing still holds 100000~500000 copies of the product.
In addition, there are also some "happy" mistakes in the annual report, such as "falling" being wrongly written as "loving dad", which is the mistake made by the Smart Life Equity Fund, a product of Guoshou Anbao, in the 2023 annual report. For another example, China Southern Ningyue, a subsidiary of China Southern Fund, disclosed that it held shares for one year and incorrectly indicated that "there were no stocks bought or sold during the reporting period of the Fund" in the "total cost of buying stocks and total income from selling stocks".
In the 2023 annual report, Hua'an Exquisite Life, a subsidiary of Hua'an Fund, completely copied the contents of 2022 in the "Analysis of Fund Investment Strategy and Operation during the Reporting Period".
The same situation happened again in the first quarter. The "analysis of the investment strategy and operation of the fund during the reporting period" of the China Post Fund's product, the China Post China Securities 500 Index, is the same as the content of the 2023 annual report.
According to incomplete statistics, more than 20 funds have issued a quarterly report correction announcement, and there are share data, performance data, information omissions and other errors in their information disclosure.
In addition to the above-mentioned problems of fund managers and fund trust, the public offering institutions themselves also frequently come into the supervision line of sight.
According to the incomplete statistics in the 2023 annual report, 20 fund companies will receive a warning letter from the regulator or a notice ordering correction in 2023. The institutions involved include both large fund companies and small and medium-sized fund companies, including E Fund, ICBC Credit Suisse Fund, CCB Fund, Huatai Berry Fund, Ping An Fund, China Post Fund, Rongtong Fund, Huafu Fund, Xinhua Fund, Changsheng Fund, Jiangxin Fund, Xinghua Fund, Pioneer Fund, Yimi Fund, AVIC Fund, Donghai Fund, Jiutai Fund Furong Fund, Zhejiang Merchants Fund, Huachen Future Fund, etc.
Among them, imperfect internal control management is a serious disaster area. In addition, some fund companies' net asset indicators did not meet the standards, financial indicators did not meet the regulatory requirements, shareholders' equity pledge failed to complete rectification on schedule and other irregularities.
For example, in 2023, Jiutai Fund received two regulatory fines. One reason is that Jiutai Fund participated in the minimum guarantee and fixed increase of five listed companies through Jiutai Jiuli, and used the fund property to seek benefits for people other than fund share holders; The second is that the proportion of high liquidity assets held by the company's own funds and the proportion of liquidity assets held by funds are not up to the standard, and the relevant systems of transaction internal control management are not effectively implemented.
Jiutai Fund and relevant personnel were also required to make corrections and impose fines.
For the frequent compliance problems in the fund industry, the regulatory policy is also constantly improving.
The new "National Ninth Article" promulgated on April 12 emphasizes "strengthening the supervision of securities fund institutions", requires strengthening the management of shareholders and business access of industry institutions, improving the appointment conditions and filing management system of senior executives, and improving the regulatory system for derivatives, margin trading and other key businesses.
On March 15, the Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First class Investment Banks and Investment Institutions (Trial) issued by the CSRC also emphasized that "strengthening the construction of compliance risk control" and "comprehensively strengthening the supervision and law enforcement".
(Author: Pang Huawei, Editor: Jiang Shiqiang)
