Interim measures for the sales of wealth management products by wealth management subsidiaries of commercial banks were issued by the China Banking and Insurance Regulatory Commission on Friday, to solicit public opinion, aiming to protect the rights and interests of investors and promote the healthy development of the wealth management business.
The promulgation of the measures is a move by the regulator to implement the new regulations on asset management and wealth management, which will be conducive to standardizing the sales activities of financial products of bank financial management subsidiaries, according to a notice on the watchdog’s website.
By combining domestic and foreign practices, the policy defines the connotation of “sales,” including publicizing and promoting wealth management products, providing investment suggestions for such products, and handling purchase and redemption for investors.
It also defines the scope of sales organizations of wealth management products and clarifies the responsibilities of product issuers and sellers.
To protect the rights and interests of investors, it is required to continuously strengthen the management of investor suitability, and sell suitable wealth management products to suitable investors.