GUANGZHOU (Fund China) – “Securities investment fund sales organization of internal control guidance” yesterday formally promulgated.

After five revised and improved, “securities investment fund sales organization of internal control guidance” yesterday officially promulgated, China’s fund sales organization of internal control structure also will be the first time explicitly.

As concerned parties, “sales management of the entire value chain Fund an important component of the introduction of the ultimate goal of the relevant policies, it is necessary to improve the checks and balances mechanism to promote the sales organization to create value.”

Space for Chapter 7, 52 “Opinion”, provides a comprehensive fund sales organization internal controls definition, objectives, principles and the basic contents of the internal control system, gave a detailed exposition of the internal control environment, business process control, accounting systems of internal control, information systems of internal control and monitoring audit control the main elements of the system.

It is said that “opinions” in six aspects of improvement:

First, learning from international practice in mature markets require investors to open trading accounts Fund, the investment fund sales organization to provide “investment interests of notes” to ensure that investors understand the relevant rights and interests, to avoid similar to that of other financial products sales process of emerging issues. Provides guidance on the investment interests of the basic contents of notes, but not on the form used to provide sales organizations form can be determined according to the situation on its own.

Second, it is to ensure the safety of funds for sale, liquidation process in terms of capital requirements clearly, sales branch agencies should be on all fund sales on the same day funds to the designated headquarters unified fund sales accounts, and realize-day-end. Since many branch outlets, difficult to control, “Opinions” called for the branches do not precipitate sales funds, in each transaction, the funds designated to fund headquarters unified sales accounts, in order to supervise banks and regulatory departments monitor the accounts of the capital security.

Third, it is to solve the Fund Distribution institutions and fund managers continued services in the issue of unclear powers and responsibilities require an investment information such as contact person information services side should bear the responsibility of continuing, but at least the sales organization should provide funds registered fund share holders names, identity card, capital account information.

Fourth, it is to introduce the concept of the service provider. Cooperation major service providers including payment settlement fund sales sales agencies and funds of funds, such as the opening of bank accounts. These institutions do not belong fund sales organization, but in the process of fund sales shoulder important responsibilities of its internal controls directly affect the level of sales of capital security. To this end, “Opinions” called for cooperation between service providers on its fund sales operations in the areas for implementation.

Fifth, the decision-making process in the sales clearly the headquarters of the sales made by the decision-making on important matters, including the overall marketing strategy, network settings, fund products, and incentive mechanisms, the ISP cooperation. Branch and the officers of the major issues on its own to make a decision not only on the implementation of decision-making headquarters. At the same time, sales operations in the implementation of process control, the marketing campaign materials and “investment interests of notes,” produced by the unified headquarters, branch offices and cooperation may not produce its own ISP, not the unauthorized release. Information revealed by the headquarters Unity, the Organization of examination and released.

Sixth, the Fund should focus on sales of unusual transactions explicit conduct, including anti-money-laundering provisions of the relevant laws and regulations of unusual transactions; Investors frequently open to revoke accounts; Investors are short-term transactions; Fund share holders change bank accounts; Sales fitness violation using the principle of the transaction; over the appointed time funds designated to pay for the behavior.

“Fund sales regulatory focus on four aspects of work: capital security, and whether there was fraud in the promotion misleading sales in the adherence to the principle of applicability, the Fourth is the issue of fair competition. The four aspects of the “views” are reflected. “The person said.

Copyright Fund China 2009.

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