GUANGZHOU (Fund China) – Fund sales has heated up, but the problem is not uncommon. The CSRC (China Securities Regulatory Commission) yesterday released two guidance with the standard. Fund selling was again reaffirmed the applicability of that should be suitable products for sale in the crowd.

Entitled “applicability of securities investment funds sales guidance” and “securities investment fund sales organization of internal control guidance,” the notices in the applicability of the sales management and internal control management focus was reiterated.

Fund sales refers to sales of funds and institutions in the process of related products, according to fund investors focus on the risk tolerance of different risk levels of sales of products sold to the appropriate product suitable fund investors. The CSRC said that the promulgation of the approach, mainly the establishment of a sound management system applicability fund sales, sales staff do the work of professional training to strengthen the management of fund sales practices, increase the risk of fund investors suggested that, due to lower product sales process caused by the mismatch of fund investors complaints risk.

Notice that funds can be based on actual sales organization further breakdown of risk bearing capacity. Basic types of conservative, moderate type, positive type. Fund sales agencies should fund investors in the first fund opened the first trading accounts or purchase products before the fund of fund investors for the risk bearing capacity of the investigation and evaluation; The fund has purchased the products of fund investors, fund sales organization should also be retrospective investigation, evaluation of the fund’s investment in wind risk tolerance. Prohibit fund sales organization violated the fund wishes to fund sales and the fund does not match the risk tolerance of the product.

In internal control guidance, the CSRC, fund sales agencies should establish effective internal controls to prevent commercial bribery and improper trading activities. Fund sales agencies should establish a complete customer complaints handling system, the establishment of an independent and handle customer complaints handled coordination departments or positions, and to the public entertained customer complaints telephone, mail address and complaint handling rules.

Two rules from now and next January 1 commencement.

Copyright Fund China 2009.

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