The ant fund was ordered to rectify the violation

articleweek

The ant fund was ordered to rectify the violation

The ant fund was ordered to rectify the violation

Profiles.

Origin: The ant fund was ordered to rectify the violations.

The fund e-commerce operator has "embarrassed the red line" and is banned repeatedly.

The regulator is responsible for sales. Funds can not send fund shares, there is no clear that can not send red envelopes, so the e-commerce to redeem package to offset the fund share, but in essence, red packets indirectly played the effect of the fund share, e-commerce platform to do this is to play "to wipe the ball

Rule of Law Weekend Reporter Jiang Qidong

Because “the older you are, the more people will forgive you for your poverty” Microfinance Services Group Co., Ltd. (hereinafter referred to as Ant Financial Services) has recently encountered a risk event.

On March 20, the Zhejiang Securities Regulatory Bureau issued a decision on ants (Hangzhou) Fund Sales Co., Ltd. (hereinafter referred to as the Ant Fund) to order corrective measures on its official website.

It is understood that the Ant Fund is controlled by Ant Financial, which holds 68.83% of its shares.

Determination of the content display, after verification, the Zhejiang Securities Regulatory Bureau found that the ant fund “Wealth No. Red Packet Campaign” has acted to sell funds in the form of cash red packets. This behavior violated the provisions of Article 82(2) of the Securities Investment Fund Sales Management Regulations (CSRC's Order No. 91).

Zhejiang Securities Regulatory Bureau said: "Securities Investment Fund Sales Management Regulations" of Article 87, decided to take over the supervision and management measures to your company to order correction. Your company should strictly control the "Securities Investment Fund sales "Administrative Measures" and other laws and regulations, fully self-examination and self-correction, further increase awareness of illegal sales practices, enhance compliance management standards, and effectively implement the appropriate management of investors in place."

The rule of law weekend The reporter's investigation found that, in addition to the ant fund, there are still some fund e-commerce companies in the market that are “caught in the wind”. What are the reasons behind these illegal marketing violations?

The Fund of Ants "send cash bonuses" to sell funds for violations

June 2017 Ant Financial's One-Stop Financial Platform "Ant Treasures" announced an upgrade to"Ant Wealth", and formally launched the "Fortune", more than a dozen fund companies settled in the Fortune number, users log in Ant Fortune App or Alipay App in the "ant wealth", you can achieve the balance treasure, regular financial management and funds and other types Financial investment.

However, in the process of selling funds, ant funds can receive red envelopes and deduct them when buying securities investment funds. This behavior appears to be illegal by regulators.

A reporter of the “Rule of Law Weekend Weekend” enquired about the “Administrative Measures for the Sale of Securities Investment Funds” (hereinafter referred to as the “Management Measures”). It is understood that Article 82(2) of the article clearly stipulates that fund sales agencies are engaged in fund sales activities and may not Take a lottery, rebate or send physical, insurance, fund shares and other methods to sell funds.

Regulations of Article 87 of the Administrative Measures state that if the fund sales organization violates the provisions of these Measures, the China Securities Regulatory Commission and its dispatched offices may order it to make corrections.

In response to this, the head of the Ant Financial Media told the Rule of Law Weekend reporter that the “Wealth Red Packet Campaign” mentioned by the regulator was an activity that went live in June 2017 and was originally intended to help finance. Consumers deepen their knowledge and understanding of the fund's wealth management. Users can read the wealth management knowledge, and at the same time, they can obtain the rights and interests of fund purchase and withdrawal, allowing users to experience fund products at a low threshold.

The Rule of Law Weekend reporter learned that the current management measures were introduced in 2013. Why did such violations occur after the introduction of this management measure? Is it because the company intends to do it or because it ignores compliance management? With regard to these issues raised by the rule of law over the weekend, Ant Financial officials did not respond directly.

However, the person in charge said: "After we had communicated with the supervisory level on this matter, we quickly got off the line earlier this year. We apologize for the problems caused. The future, We will further strengthen compliance management and refer to the spirit of supervision, and work better with eco-partners to educate financial consumers."

Red envelope marketing model floods funds E-commerce

In fact, it is not uncommon for fund sellers to sell funds by giving bonuses. The Ant Financial Fund's ant fund is not the first company to attract regulatory attention.

As early as last October, the same flush fund sales companyBecause of the existence of the "518 Finance Festival" campaign to sell funds in the form of bonus fund shares, the Zhejiang Securities Regulatory Bureau adopted regulatory measures to order corrections.

Rule of law Weekend reporters observed on a number of mainstream fund agency platforms in the current market that it was very common for merchants to send financial package to users, especially for new registered users.

For example, on the WeChat Wealth Management Fund Buying Fund page, there is an activity called “Seeing Investment Cheats and Leading Moneybags”. The activity rules show that as long as the user completes the learning of investment knowledge, he can obtain financial package red envelopes, which means that red-credited red envelopes can be used to redeem red packets when they apply for a designated fund.

The Rule of Law Weekend reporter noticed that after Jingdong Finance’s novice fund micro-knowledge page, coupons for exclusive funds were also available for users to collect. However, such activities are currently not visible on the platform.

In addition to this, the Rule of Law Weekend Reporter downloaded a number of fund distribution platforms App and found that similar apps existed on platforms such as Flush Funds, Le Funds, Pocket Funds, China Finance and Profits Fund. "New registered users send red envelopes" promotion.

Zhao Occupy, a well-known IT legal expert, told the Law Weekend reporter that the supervisory regulations stipulated that when selling funds, they could not send fund shares and did not explicitly say that they could not send red envelopes. So the electricity supplier used the red envelopes to deduct the funds. The share, but in essence, the red package indirectly played the effect of the fund's share, and the e-commerce platform wanted to play "scratch the ball."

On the other hand, as the internet giants enter the game, the competition of fund e-commerce is becoming increasingly fierce.

According to public information, the ant fund was founded in 2006 and was formerly known as “Hangzhou Jimmy Fund Sales Co., Ltd.” (hereinafter referred to as the “Meter Fund”). In April 2012, the Digital Meter Fund received the "Certificate of Fund Sales Qualification" and became the first batch of independent fund sales agencies in China. In April 2015, the company was strategically controlled by Ant Financial Services and became a member of Ant Financial Services in the field of Internet financial services.

In January, Tencent’s Tengan Company obtained a third-party fund sales license, and Internet giants Ali, Jingdong, and Tencent have all obtained fund sales qualifications.

Why the reason for repeated violations?

For many investors, this kind of red envelope marketingThe model is very common among fund e-commerce, but it is easy to touch the minefield. What many investors feel is not understandable is that such an e-commerce acquisition behavior is very common. Why is it difficult for regulators?

"Defining from the legal level, according to the provisions of relevant laws and regulations, this kind of behavior is definitely illegal. The penalties imposed on the relevant e-commerce by the supervisory level are legally based and must be legal." Dong Yizhi, an internet and investment financial lawyer, expressed to the reporter for the rule of law and the weekend.

The reason why it is not allowed by the regulatory authorities is that the e-commerce fund's marketing model for sending red packets may have some negative effects.

Professor Wu Changhai of the Institute of Capital Finance, China University of Political Science and Law, told the Weekend Weekend Reporter: “The supervisory layer is mainly to prevent the fund industry from adopting unfair competition to attract customers, which reflects the strict supervision of the financial industry. The financial industry has a certain degree of particularity and is inherently risky. Not paying attention to it may cause rapid proliferation of risks and trigger a chain reaction."

In Dong Yizhi’s view, fund products are not ordinary commodities, and purchase funds. Investors are not ordinary consumers. “The purchase of funds is a kind of investment behavior. It is a high-risk investment. It does not guarantee a rigid payment. If businesses are using red packets and other methods to attract investors to buy This product, in itself, is irresponsible and may cause systemic risks."

The Rule of Law Weekend reporter noted that even after the introduction of the current management measures in 2013, the pattern similar to the red packet marketing is still emerging in the fund e-commerce. Is the degree of importance attached to compliance issues by the fund e-commerce company insufficient? Or is there a situation where supervision is weak?

Dong Yizhi stated that this new business model of Internet sales funds is constantly evolving, but many regulatory frameworks have not been straightened out before. For example, who will supervise, regulate, and apply what kind of laws? . The Internet sales fund, whether it is based on the Internet or financially, is always in dispute. At the same time, some Internet giants are using their dominant position in the industry, touching the red line and challenging supervision.

"Regulators may also face high enforcement costs, which can easily create regulatory vacuums. On the other hand, businesses are merely supervised by regulators to make corrections and there are no other penalties for many fund e-commerce companies. Saying that the lower cost of illegality is also the prohibition of red packet marketing.One of the reasons for ending. "Wu Changhai thinks.