"New Asset Management Regulations" refers to the general term of the management rules promulgated by financial regulators on the development of asset management business by financial institutions. It is mainly composed of the Guiding Opinions on Standardizing the Asset Management Business of Financial Institutions jointly issued by the People's Bank of China, the Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, the Supervision and Administration Measures for the Financial Services of Commercial Banks and the Interim Measures for the Management of the Financial Services of Commercial Banks issued by the Banking and Insurance Regulatory Commission. The New Asset Management Regulations (the ‘Regulations’) comprises interlocking macro, meso, and micro linkages. The Regulations make clear the nature of provisions on asset management businesses, investment directions, management rules, product types, operating entities, operating processes, risk control requirements and supervision methods and puts forward systematic and strict management requirements.
This article reflects on the necessity and importance of the "information technology new rules" based on the experience of the first three years of practical implementation and focuses on how to deepen the understanding of basic business management rules. Commercial banks carry out their duties diligently and are honest and trustworthy and investors do not face risks from lack of responsibility by commercial banks. Commercial banks operate on the premise of accounting separation, proprietary and information technology business separation, operational separation, product separation, separation of customer groups, separation of investment products, separation of the risk management system, in line with the "new asset management regulations".
This article also analyses the guiding role of strengthening external supervision of financial services, including the implementation of the licensing system for financial services, the unified supervision system, the combination of institutional supervision and functional supervision, and the understanding that financial services must support the development of the real economy, gradually standardized management, and steady progress.
Finally, this article identified the new opportunities for the financial services of commercial banks after the promulgation of the "new regulations on asset management", including:
Providing business platforms with more professional, more transparent, more risk control ability and corporate governance ability for bank financial management.
Conversion and renewal of the bank's financial services. Although bank wealth management subsidiaries have become independent legal entities, banks can continue to retain the original business and customers in the banking system through agent sales.
Using the bank's customer resources, management experience and talent base to meet the requirements of continuity and risk control.
Although financial management subsidiaries belong to non-bank financial institutions, they must be led or controlled, through shareholding, by commercial banks.
However, the challenges facing the financial services of commercial banks are also obvious:
First, investors' investment preferences and psychological expectations need to be adjusted. Second, the financing demand side of the project or enterprise is faced with challenges such as the increasing difficulty of financing, which is reflected in the improvement of access standards, shortening of the term, lowering of the leverage ratio, and control of the financing limit. Thirdly, banks should strictly implement the new rules, make use of the limited transition period to form a sound corporate governance and business process structure, match the corresponding relationship between financial products and financing projects, and maintain long-term cooperative relations with high-quality customers.
The challenges faced by commercial banks wealth management subsidiaries cannot be ignored either. The first is whether the wealth management subsidiary could successfully issue public offering products in the future; the second is is whether the wealth management fund could realize a virtuous circle of investment, through private placement, and the third is whether the parent bank and subsidiary can be separated from parent bank and subsidiary’s joint liability risks.