Commercial bank financial management subsidiaries can provide personal financial management services

The so-called "bank financial management subsidiaries" are actually initiated and established by commercial banks as controlling shareholders, and are subject to the banking supervision of the State Council A non-bank financial institution approved by the regulatory agency; mainly engaged in financial management business; independent of the parent bank and with independent legal person status.

Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, China Merchants Bank, Bank of Communications, China Everbright Bank, etc. have all been approved to establish their own wealth management subsidiaries.

The reason why banks want to set up wealth management subsidiaries is actually to strengthen the risk isolation of banks’ wealth management business, and also to help break the rigid redemption.

In addition to issuing financial products and investing and managing entrusted investor properties, bank wealth management subsidiaries also provide financial advisory and consulting services, etc. Its business can be divided into three major segments: public products, private products, financial advisory and consulting.

The wealth management products issued by bank wealth management subsidiaries can also be sold on behalf of banking financial institutions, and can also be sold on behalf of other institutions recognized by the China Banking and Insurance Regulatory Commission.

The financial management subsidiary of a commercial bank is different from the current financial management department. It is equivalent to taking out the internal department of the bank responsible for financial management business and making it a separate subsidiary. The original bank is the parent company. The wealth management subsidiary is economically dominated and controlled by the bank parent company, but legally, the bank parent company and the wealth management subsidiary are independent legal persons.

The opinions and suggestions "to be adopted in the business rules of wealth management subsidiaries" mean that there are three main parts of the business that the wealth management subsidiaries of commercial banks may be exposed to:

Further reduction The starting point for the sales of wealth management products, expand sales channels, include legally compliant and qualified private equity investment funds into the scope of wealth management investment cooperation institutions, do not require individuals to be interviewed at bank business outlets for the first time when purchasing wealth management products, and allow the issuance of graded wealth management products, etc.

Public financial management products issued by subsidiaries are allowed to invest directly in stocks or invest indirectly in stocks through other means.

Incorporate legally compliant and qualified private equity investment funds into the scope of financial investment cooperation institutions.

Because the "Administrative Measures for Financial Management Subsidiaries of Commercial Banks" have not yet been promulgated, the difference between financial management subsidiaries and bank financial management cannot be understood in detail.

But what is clear is that the reference documents for bank wealth management business and wealth management subsidiaries are different: bank wealth management business, that is, "if the bank has not yet carried out wealth management business through its subsidiaries," the bank must also comply with the "asset management regulations" when conducting wealth management business. "New Regulations" and "Measures for the Supervision and Administration of Financial Management Business of Commercial Banks"; while wealth management subsidiaries refer to the "Measures for the Administration of Financial Management Subsidiaries of Commercial Banks".

The "Measures for the Administration of Wealth Management Subsidiaries of Commercial Banks" is intended to be a supporting system for the "Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks", and its applicable regulatory provisions are generally consistent with those of other similar financial institutions.

For bank financial products, you can go to Identify Risks and Identify Wealth to view the risk evaluation reports of each bank’s financial products. This can effectively avoid investment risks.