crashtagteamracingps3| Another company has been revoked of its fund sales license

SourceCrashtagteamracingps3International financial newspaper

During the year, another company had its fund sales licence cancelled.

Recently, Sichuan Securities Regulatory Bureau issued a notice saying that it ordered Chengdu Hua Yi Hengxin to stop the fund service business.Crashtagteamracingps3According to the administrative penalty, it was decided to cancel the license for the sale of public securities investment funds in Chengdu Hua Yi Hengxin.

Interviewees believe that the strong regulatory environment and increasingly fierce competition in the same industry have put forward higher requirements for fund sales institutions, and the operating costs of fund sales institutions have also been increasing. as a result, some smaller fund sales institutions with unsatisfactory business development began to withdraw from the market, and the survival of the fittest is the inevitable result of the development of the industry.

There are illegal facts.

Chengdu Hua Yi Hengxin was cancelled fund sales license, what happened?

It is reported that this is related to the administrative penalty decision received by Chengdu Huayi Hengxin last month.

On April 24, the Sichuan Securities Regulatory Bureau announced that a case was investigated and tried against Chengdu Hua Yi Hengxin's violation of the Securities Investment Fund Law, and informed the parties concerned of the facts, reasons, basis and rights enjoyed by the parties in accordance with the law. The party concerned did not make a statement or plead, nor did it ask for a hearing. The case has now been investigated and the trial concluded.

According to investigation, on January 13, 2014, Chengdu Hua Yi Hengxin obtained the qualification of securities investment fund sales business and belongs to an independent fund sales organization. Since Chengdu Hua Yi Hengxin obtained the qualification of securities investment fund sales business, no disaster backup system has been established.

The Sichuan Securities Regulatory Bureau said that the above illegal facts have been proved by inquiry records, situation notes, relevant contracts and other evidence. According to the facts, nature, circumstances and social harm degree of the illegal acts of the parties, and according to the relevant regulations, Sichuan Securities Supervision Bureau decided to impose a fine of 300000 yuan on Chengdu Huayi Hengxin and ordered it to stop the fund service business.

The business has been suspended many times.

The reporter noted that before Chengdu Huayi Hengxin's fund sales license was cancelled, it was suspended three times in 2016, 2017 and 2020.

Looking back, in 2016, the Sichuan Securities Regulatory Bureau found that Chengdu Huayi Hengxin had a number of violations and was ordered to suspend the sale of public offering funds for six months.

The irregularities involved in that year included: not reporting the plan to Sichuan Securities Supervision Bureau for record before setting up Chengdu Huayi Hengxin Wealth Investment Management Co., Ltd. Hangzhou branch; not filing the change plan before changing the business scope; not putting the change plan on record before changing senior management On April 26, 2016, less than 10 people qualified for the fund were not reported to the Sichuan Securities Supervision Bureau within 5 working days, and the personnel were adjusted to the prescribed requirements within 30 working days.

In 2017, the Sichuan Securities Regulatory Bureau found that Chengdu Huayi Hengxin had not reported the change plan to the Securities Regulatory Bureau for the record before changing shareholders, and was ordered to suspend the sale of public offering funds for three months.

In 2020, Chengdu Huayi Hengxin was found to have failed to perform its duties normally since May 2019. Except for one administrative assistant, no other staff in the company go to work normally. The basic bank account of the company has been frozen and is unable to normally pay the personnel wages and office space rent necessary for business operation. The company has been unable to operate normally.

As a result, Chengdu Huayi Hengxin was ordered to correct and suspend the sale of securities investment funds for 12 months in 2020.

According to public data, Chengdu Huayi Hengxin was established on January 29, 2013, with a registered capital of 61 million yuan. The reporter inquired about the enterprise and found that the current registration status of the company was "revoked, not cancelled."

Accelerated survival of the fittest

In fact, Chengdu Huayi Hengxin is not the first company to have its fund sales licence cancelled this year.

In February this year, the Henan Securities Regulatory Bureau announced that the China Securities Regulatory Commission had decided to cancel the business license of Huarongda Futures Public offering Securities Investment Fund. However, Huarong Rongda futures is not a passive cancellation, but took the initiative to apply for cancellation of the fund sales business.

"the survival of the fittest is the inevitable result of the development of the industry." Rong Hao, wealth management partner of the platoon Network, said in an interview with the International Finance News.

Rong Hao believes that the increasing competition in the fund sales industry and the continued strengthening of supervision have put forward higher requirements for fund sales institutions. At the same time, the operating costs of fund sales institutions are also increasing, and many factors lead to some small-scale and unsatisfactory business development of fund sales institutions begin to withdraw from the market.

In the face of industry challenges, Rong Hao said that fund sales institutions should start from many aspects to maintain a good fund sales business.

First, strengthen compliance management. Compliance is the foundation of the long-term sound operation of fund sales institutions, especially in the context of increasingly stringent supervision, fund sales institutions should establish an effective compliance management system to avoid violations of laws and regulations.

The second is to improve professional ability and service level. Fund sales business involves complex financial products and market knowledge, and the competition in the industry is also very fierce, so fund sales organizations not only need to improve the professional ability of their employees, but also need to establish a sound customer service system. In order to better provide customers with professional and efficient services, enhance customer trust and satisfaction.

Third, enrich the product line. To provide a variety of investment options, and strive to create an one-stop investment and financial management service platform for customers.

Fourth, actively embrace science and technology. Actively use big data, AI and other technologies to improve the efficiency and quality of customer service.