China Banking Regulatory Commission, Measures for the Administration of the Sale of Wealth Management Products of Commercial Banks
中国银行业监督管理委员会商业银行理财产品销售管理办法
November 08, 2011 | BY
clpstaff &clp articles &Assessment of the risk bearing capacities of customers required for the sale of wealth management products of banks.
Promulgated: August 28 2011
Effective: January 1 2012
Interpreting authority: China Banking Regulatory Commission
Applicability: For the purposes of these Measures, the phrase “sale of wealth management products of commercial banks (Wealth Management Products)” means the publicising, promotion and sale by a commercial bank to individual customers and institutional customers (hereinafter collectively referred to as “Customers”) of Wealth Management Products that it has developed and designed itself, as well as the handling of the purchase and redemption thereof (Article 2).
Main contents: When a commercial bank provides Wealth Management Product sales services to private bank Customers and high net asset value Customers, it shall carry out assessments of the risk bearing capacities of the Customers. The term “private bank Customer” means a commercial bank Customer who has net financial assets of at least Rmb6 million. When the commercial bank provides the services, the Customer shall provide the relevant proof thereof and sign the same in confirmation. A high net asset value Customer is a commercial bank Customer who satisfies any of the conditions set forth below:
(1) a natural person who subscribes for a single Wealth Management Product worth not less than Rmb1 million;
(2) a natural person whose personal or family's total net financial assets exceed Rmb1 million, at the time of subscribing for a Wealth Management Product, and who can provide relevant proof thereof; or
(3) a natural person whose personal income has exceeded Rmb200,000 each year during the most recent three years or whose total family income exceeded Rmb300,000 each year during the most recent three years and who can provide relevant proof thereof (Article 31).
A commercial bank may not sell a Wealth Management Product for which there is no market analytical forecast, risk control contingency plan or risk rating, or the value of which cannot be separately measured and calculated, or a Wealth Management Product including complex financial derivatives in which there is a gross imbalance between risks and returns (Article 34).
A commercial bank may not unconditionally promise a Customer a guaranteed return rate higher than the interest rate for deposits at the same period; a guaranteed return higher than the interest rate on deposits at the same period shall be conditional. The conditions that a commercial bank attaches when promising a Customer a guaranteed return may be the right to revise the term, convert the currency, etc. of the Wealth Management Product or the right to select the final payment currency and instrument. The investment risks arising from the conditions attached to promised guaranteed returns shall be borne by the Customer and the Customer shall be expressly informed thereof in the sales documents. A commercial bank may not promise or promise in a disguised manner any available benefits other than the guaranteed return (Article 35).
A commercial bank may not simply package deposits and sell them as Wealth Management Products and may not forcibly tie in the sale of Wealth Management Products with deposits. A commercial bank may not publicise and sell Wealth Management Products as deposits and may not violate state interest rate control policy by seeking to attract deposits through high interest in a disguised manner (Article 36).
clp reference:3600/11.08.28promulgated:2011-08-28effective:2012-01-01This premium content is reserved for
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