Crude oil treasure "thunderbolt": financial institutions should be good "gatekeepers"

  ■ Observer

  Whether it is investor access control, risk control processing mechanism or aftermath processing mechanism, BOC has something to reflect on.

  WTI crude oil fell into a negative value, implicating the Bank of China's wealth management product crude oil "thunder" incident has made new progress. According to the Beijing News, in response to the accusations of some investors, the Bank of China issued a statement explaining the relevant information and risk notification responsibility that it played, and said that it will comprehensively review product design, risk management and control links and processes, in the legal framework Undertaking should be responsible.

  In this incident, Bank of China and related customers should say that they have their own responsibilities. Investors must understand that futures investment requires a more professional market recognition, and cannot be a “hands-off”, trusting investment in gaming-style “bottom bargaining” or “chasing high”. But from the perspective of the Bank of China, there is more to reflect on.

  All along, the futures market is easy to attract investors with high risk appetite and excessive speculation. However, if investors lack a deep understanding of this, or if they are weak in their ability to afford but want to expand, they are not qualified participants in the futures market. This of course requires investors to have a clear understanding of themselves, but Bank of China should also play a more comprehensive role in investor education, including the effective implementation of the principle of appropriateness.

  The so-called principle of appropriateness refers to the degree of agreement between the financial products or services provided by financial intermediaries and the financial status, investment objectives, risk tolerance level, financial needs, knowledge and experience of customers. This requires financial institutions to be obliged to conduct basic investigations on investors, as well as basic tests such as risk perception and affordability before they can recommend corresponding financial products to them.

  However, in this incident, it was reported that some "crude oil treasure" investors have always mistakenly thought that they were buying financial products. If this is true, it is doubtful whether Bank of China had insufficient product introduction and explanation information before. If an investor files a lawsuit against this, Bank of China will need to provide evidence. In response to the argument that the transaction time is too late and the position is not forced to close, the Bank of China also needs to consider whether it has fulfilled its prudent operation and diligent obligations.

  According to the latest news, some investors reported that the Bank of China had closed its “Crude Oil” trading account on April 22, and the content of the crude oil treasure ’s operation interface was completely cleared, including the disappearance of customer positions and transaction records, and said that some The regional branch has deducted the margin account. The Bank of China customer service also said that if the deposit is not made up, it will be regarded as arrears, and it has the right to apply to the People's Bank of China for this credit.

  These follow-up actions of the Bank of China are more inclined to protect their own interests, which is suspected of being simple and extensive. This will not only cause emotional shock and intensify conflicts for the damaged investors, but also give people a sense of avoiding their own responsibilities. It can also be seen from this, whether it is the investor access control, risk control processing mechanism, or aftermath processing mechanism, etc., I am afraid that there is something worthy of reflection by the Bank of China, especially because this matter involves a large number of investors.

  This is actually a reminder: considering the fact that some investor groups in China are not mature enough and their professionalism is weak, financial institutions have to strictly manage futures and other high-risk financial products, including marketing promotion and investors. Qualification review, professional guidance on the investment process, and better risk warning, etc., should better perform the role of investment "gatekeeper" to avoid losses to investors due to improper management.

  □ Bi Ge (financial commentator)