China News Service, Beijing, September 8th (Reporter Wang Enbo) China Banking and Insurance Regulatory Commission on the 8th publicly solicited opinions from the public on the "Measures for the Liquidity Risk Management of Wealth Management Products of Wealth Management Companies (Draft for Solicitation of Comments)".
The "Measures" emphasizes that liquidity risk management will run through the entire process of wealth management business operations.
According to the person in charge of relevant departments of the China Banking and Insurance Regulatory Commission, the introduction of the "Measures" is based on the need to further improve the rules and regulations of wealth management companies.
In accordance with the requirements of the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" on "Financial Supervision and Administration Departments Should Formulate Liquidity Risk Management Regulations", further clarify and refine the liquidity risk management rules for wealth management products.
At the same time, based on the need to protect the legitimate rights and interests of investors.
Regulating the liquidity management of wealth management products, improving the ability to redeem funds, and preventing passive realization of assets from lowering the net value of products will not only help protect investors' rights to redeem products, but also help protect investors' legitimate rights and interests from damage and fair treatment.
In addition, it is also based on the need to maintain the stability of the financial market.
Wealth management products are advancing the transformation of net worth, and their associations with financial markets and other asset management products have increased, and higher requirements have been placed on product liquidity management.
The promulgation of the "Measures" will help urge institutions to strengthen product liquidity management and better prevent risks from spreading across markets and products.
It is understood that the "Measures" require wealth management companies to establish effective corporate governance and management and control mechanisms, improve various management systems and implement them effectively.
For example, a wealth management company should establish a sound financial product liquidity risk management system and governance structure, designate special departments and positions, and be equipped with sufficient and competent personnel to be responsible for financial product liquidity risk management.
The wealth management company should also designate a special department to be responsible for the stress testing of the liquidity risk of wealth management products, and to maintain relative independence from the investment management department.
With regard to the management of investment transactions in wealth management products, the Measures put forward specific requirements.
Wealth management companies should comprehensively evaluate factors such as the liquidity of investment assets, investor types, and risk preferences during the design phase of wealth management products, prudently determine open and closed product operations, and rationally design subscription and redemption arrangements.
At the same time, wealth management companies should continue to do a good job in the investment management of low-liquidity assets, liquidity-restricted assets and high-liquidity assets, and improve the degree of matching between asset liquidity and product operation methods.
Wealth management companies should also continue to monitor the liquidity risk of wealth management products, carefully evaluate the valuation and liquidity of the various assets invested in the product, and fully consider the possible impact of reputational risk, credit risk, market risk, and counterparty risk, and do so in advance. Out of response arrangements.
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