According to market news, the regulatory authorities have recently issued a notice to trust companies to solicit opinions on the revision of the management measures for trust companies. This is quite different from the previous version, and the management of remuneration is also written into it, and the trust company is also required to clarify the trigger conditions and scope of application of performance-based remuneration deferred payment and recourse clawback.
As we all know, there has been a situation in a trust company before, and the commissions of business personnel need to be recovered for projects that have problems before. At that time, there was still some controversy in the market because of this matter, because from the perspective of investment consultants, they felt that it was unfair to themselves, but from the perspective of investors, everyone seemed to be able to understand.
This matter is also specifically mentioned in the draft opinion. If this provision is finally determined, it will also form a certain binding effect on investment consultants. Because you have to know that if the project you recommend is not paid as scheduled in the end, then your own commission income will be recovered. In this way, the investment advisor will choose a safer product to recommend, otherwise what you are doing is actually meaningless.
Judging from the current market, the higher the risk of products, their coupon rates and fees to investment advisors will be higher than other normal products. Therefore, sometimes, some investment consultants will choose the kind of products with high fees for recommendation. For example, the current perpetual bond products, their income is significantly higher than that of non-standard political credit, and the cost of such products is about 2-3 times higher than that of non-standard products.
Therefore, we will find that even if everyone knows that this kind of product is very risky, there will still be many investment advisors recommending it. If this draft is passed, if there is a problem with the perpetual bond product you recommend, then your fees will be recovered. This kind of regulation by the regulator may also hope that investment advisers can recommend projects from a neutral and objective perspective, and also restrict investment advisors from an indirect perspective.
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After all, they themselves also have to consider that if there is a risk in the project, they themselves need to bear part of the responsibility, rather than having to be qualitative and non-absorbing, before they will be recovered. Finally, whether it is an investment consultant or an investor, I also hope that everyone can take the safety of the project as the first, if you have anything unclear, you can leave a message in the comment area, and we will reply to you as soon as possible.