Funds, Securities And Banks Want New Business. Will You Spend Money On Investment Advice?

Recently, investment has become a hot topic in the information management market.

In October, the securities and Futures Commission issued a notice on the pilot work of publicly promoting the investment advisory business of securities investment funds. The pilot business was officially launched. The first five fund companies of Huaxia, Jiashi, Yi Fangda, southern and central Europe have applied for and completed the record.

Just two months later, the SFC issued the second batch of institutions that received the "pilot project of publicly raising investment advisory business of securities investment funds", namely, tengan fund, ant fund and Zhuhai surplus rice fund three independent fund sales organizations.

The institutional attributes of the approved pilot business include the fund company and the subsidiary company of the fund company. Securities companies and banking institutions are also eager for this, and some agencies are applying for it.

With the rapid landing of the policy and the active participation of the organization, the market is full of expectation for this new business mode. Under the domestic financial structure, no matter from which point of view, banks are well deserved "big brother". This will put the bank in the central position, mainly because the bank has absolute identity background and channel advantages, firmly grasp the terminal customer resources, the non bank agencies have to get a share from it, and the public offering fund is no exception.

The dependence of public funds on bank channels has always been controversial. On the one hand, the channel divides most of the cost income; on the other hand, the investment style of the fund company is largely influenced by bank preference.

The fund investment adviser model pilot landing, can change the existing pattern? There are different attitudes in the industry: some people think that in the domestic financial environment, it is difficult to reverse the pattern of land without buyer's payment. Others believe that this is a breakthrough. With a licence, fund companies and third party organizations can develop in this direction and gradually grasp the initiative.

Does the buyer have a future?

In fact, in China's financial industry, investment is not an unfamiliar concept. As early as this pilot, there were banking financial advisers and securities investment advisers in the industry. In the transformation of financial institutions, especially the transformation of brokerage business to wealth management, the number of investment advisers is increasing significantly. According to the data disclosed by China Securities Association, as of the three quarter of this year, more than 50 thousand registered workers have increased by about 13% compared with the end of last year.

But this is different from the current qualification of the fund being tested. The domestic securities investment consulting industry is divided into issuing securities research report business and securities investment consultancy business according to customer type, and has not released full powers. Therefore, the domestic securities industry's investment business mainly provides customers with stock investment advice and sales products, and the main source of income is institutional customers.

The fund's license granted to the fund gives the fund company the right to adjust its position directly for customers, which is similar to making an FOF product for investors in the form of account management.

We can see the difference from the current introduction of qualified company business, such as the joint venture investment company of ants and Vanguard: according to the investment objectives, investment duration and risk preference of investors, we can provide customized services to investors through Alipay's wealth management platform ant wealth. The minimum user investment is RMB 800 yuan (US $113).

From the point of view of charging mode, investment is divided into buyer's investment and seller's investment. In recent years, China's financial industry has begun to emphasize the integrated wealth management business. Banks and brokerages are transforming to wealth management. Some third party Fortune Management Inc have also appeared in the market. They are involved in the business of selling, which are paid by sellers and are more closely related to sales. One of the backgrounds is that the management and management industry has long been rigid and covert, with a low professional requirement and a strong sales attribute.

At present, the pilot's fund investment is the buyer's attention. "Buyer pays is very difficult in the country, temporarily does not have this soil." A fund company person told reporters on twenty-first Century economic report.

Breaking the monopoly of bank consignment?

However, the fund companies also said that the investment business is a good opportunity for fund companies to break the monopoly of bank affiliate sales.

The dependence on the channel of bank selling has always been the "unspeakable pain" of the fund industry. Despite the rapid development of Internet channels in recent years, many fund company salesmen told reporters that the biggest channel for retail sales is still banks. This fund company issues products, bank sales mode, banks need to receive a lot of commission costs. In general, the rate of agency sales for fund products is around 1%.

Each company's cooperation mode is different. The above public fund company personages disclosed that the company's situation is that the bank channel receives all the purchase and redemption fees and the management fee of 70%-90%.

Despite the fact that they are "bridal clothes for others", fund companies are very active in issuing products, mainly for large-scale purposes.

A bank insider told reporters on twenty-first Century economic report that the income of consignment fund products is not large in the total bank receipts. It is a part of the collection. The selling rate is inferior to the insurance products, the cost of equity products is higher, and the overall sales revenue depends on the market. In the bull market, a exploding product sells tens of billions of dollars a day, and its income is quite impressive. Because it does not take risks, it can also provide customers with more choices. Banks are willing to do so.

However, under the spirit of the new regulation of information management, supervision requires sellers to fulfill their duties. Not long ago, a client sued the bank for loss of products, and the bank was later found guilty of improper sales. Therefore, banks are more cautious about consignment business.

Fund companies' dependence on banks is not only the issue of transfer fees. It is deeply influenced by banks in the issue of products and investment style. In order to get the favor of banks, the fund companies will consider the preference of banks when issuing products. As a traditional financial institution, banks have low risk preference, so fund companies have issued a large number of "fixed income +" products.

The bank's monopoly on consignment has led the fund companies to continue to innovate. Another fund company official said, because the incentive policy of new products is better than that of old products, banks are more inclined to sell new products on the consignment, leading to fund companies continuously issuing new products.

Can this pilot mode of investment be rid of these drawbacks? Fundamentally speaking, the starting point of this model is to transform the position of financial institutions and truly create profits for investors. In the design of charging mode, we should pay attention to the difference between front-end charging and back-end charging. The front end charges are directly priced and charged for consultation proposals. The back end charges take into account the profit share and ensure that the interests of institutions and investors are consistent from the system design. In the early stage, customers can accumulate customers through free mode, and may develop slowly in this direction.

At the beginning stage, most institutions are still on the sidelines. The head of a public fund company told the twenty-first Century economic report that the current pilot projects were mainly fund companies and fund subsidiaries, which had strong online customer resources. "But the fund's involvement is more of a wealth management asset allocation function, which is more suitable for the head broker to carry out in advance. For fund companies, the effect will not be obvious. Because the fund company is a light asset institution, banks do not have professionalism in investing, and the comprehensive, professional and flexible business of securities companies is more suitable. As a single fund company with a clear strategy, we will not consider applying for this qualification for the time being.