On December 8, the China Securities Regulatory Commission issued the "Provisions on Strengthening the Management of Public Offering Investment Transactions (Draft for Comments)".We believe that the focus of this draft is to standardize and rectify the soft commission model in the industry
The so-called soft commission means that when the company buys research services from the brokerage research institute, it does not use its own money, but pays through the transaction commission. This is a classic "wool out of the pigs" and is unfair to investors:I have already paid a management fee to the ** company, why should I pay for your investment research services, and besides, there is no way to monitor whether the ** company is too generous in purchasing these investment research services.
For example, in Europe, which began to implement MIFID II (Markets in Financial Instruments Guidance 2nd Edition) in 2018, brokers are required to charge research fees separately, and trading services and research services are no longer allowed to be paid in a package, and ** companies are required to provide customers with the specific fees they pay for the purchase of research services.
The core content of the new transaction management regulations issued by the CSRC includes the following points:
1.Reasonable reduction of the trading commission rate of the public offering**. The trading commission rate of passive ** should be adjusted to the same as the market average (about 2 thousand) and should not be used to pay for research services, and the transaction commission rate of active ** should not exceed 2 times the market average, probably from the current 8 million to 4 thousand.
2.The total amount of commissions for transactions made by a ** management company through a ** company shall not exceed 15% of the total amount of all ** commissions of a ** management company for the year. The proportion of ** companies with partial shares of less than 1 billion is limited to 30%.
It is strictly forbidden to link the distribution of trading commissions with the scale of sales and holdingsThe use of trading commissions to transfer payment fees to third parties is strictly prohibited.
The first two items are not only to reduce the total amount, but also to adjust the structure from the perspective of commission rate and commission distribution. This is a real benefit for investors, while for brokers, it is facing the problem of reduced income.
What really exploded was the third article, which stipulates the purpose of the trading commission.
First of all,Trading commissions cannot be linked to sales。This will have a far-reaching impact on the sales and investment consulting of the brokerage channel. Although the wealth management of brokerages has always said that it is not a sell-side sale, but a buy-side investment advisor. However, if the sales scale is linked to the trading volume given by the ** company, it is difficult for the buyer's investment advisor to be convincing. Who can refuse a product from a company with a high rebate on trades?
And if the transaction commission is not linked to the sale, then the only income of the salesperson can only be the sale itself, which is essentially an investor in the market. At this time, the only thing the brokerage has to do is to satisfy the investors and not the company. In order to improve the scale of ownership, it is necessary to do a good job in product selection, so that the buyer's investment advisory logic that is responsible for the income of investors can really be smooth.
Secondly,Transaction commissions may not be used to transfer payment fees to third parties。What does this transfer fee mean?For example, if the company wants to buy Wind financial terminals, external expert services, etc., he does not spend his own money, but asks the brokerage to help him buy it, and then gives the brokerage the corresponding trading volume, so as to complete the transfer payment.
If the ** company can send points to the brokerage firm for various reasons other than research, the relationship between the brokerage research institute and the ** company may become too complicated. In the face of the absolute Party A of the first company, the institute should not only do a good job in research, but also do a good job in service, and sometimes even service is more important than research. It is difficult to judge the professionalism of the research in the short term, and whether the service can satisfy the ** manager may be immediate. That's why there is an increasingly large institutional sales force in the brokerage research institute, which essentially wants to do a good job of service.
For such a result, the ** manager is also happy to see it, can enjoy a variety of thoughtful services, and does not spend his own money, or even the company's money, but with the ** account of the transaction commission, in the final analysis, it is the people's money. It's not distressing to spend other people's money, the quality of your research is poor, as long as the service is in place, you can't reach out and hit the smiling person, isn't it?
Since the research is good is not as fast as the service, the market will slowly appear the phenomenon of bad money chasing good money, excellent research will be less and less, the manager spent the people's money, but did not buy the investment research that is really needed.
The purpose of this new regulation is to clean up the source, and the transaction commission cannot be paid for other transfer payments and other services, and the payment direction of the actively managed commission only leaves the research itself.
Various fees cannot be paid with trading commissions, which on the one hand reduces the risk of over-trading for the sake of distribution points, and also forces companies to become more cautious when purchasing various servicesOn the other hand, let the brokerage research institute return to the origin of research, after all, only professional research can be sold now. In the short term, it will put greater pressure on a large group of research institutes, especially small and medium-sized brokerage research institutes that do not have a competitive advantage in professional research.
* Continued downturn, judging from the performance of the partial stock hybrid ** index, the public offering ** has been losing money for 3 consecutive years, and the entire ** management industry is at a critical moment of life and death with a lack of investor trust, and it is time to use some fierce medicine.
As a leading investor and a practitioner in the wealth management industry, we are in favor of this kind of reform that truly starts from the interests of investors and can clean up the roots of the industry and penetrate into the soul.