CFIC Introduction
Original title: Trust industry, big moves
The strict supervision of the trust industry continues.
The reporter exclusively learned that the regulator recently convened an online meeting of some trust companies to convey a number of the latest regulatory spirits, such as non-standard trusts need to carry out portfolio investment, new fixed income (bond investment) trust products need to be valued by the market value method, and it is also necessary to prudently judge the risks of the actual controller of private equity funds and related parties. A number of trust business sources said that under the latest regulatory requirements, the scale and risk of new non-standard trusts will be further reduced, and the advantages of fixed-income trust products will most likely be weakened in stages, and trust companies need to improve their active management capabilities to reshape their competitive advantages.
In fact, since the beginning of this year, regulators have frequently taken action to guide trust companies to prevent risks, such as stopping the illegal business of cooperation between trust companies and wealth management companies, and clarifying the information disclosure requirements for asset management products. In the eyes of industry insiders, strengthening risk prevention and resolution has become one of the current "key words" in the industry, and subsequent trust companies need to review and investigate their own business risks according to regulatory requirements, and focus on the source business to achieve high-quality transformation.
Trust non-standard business may add a 25% restriction
"Recently, the regulator convened an online meeting of some trust companies to verbally convey the latest regulatory spirit, which mentioned the latest requirements for non-standard trusts." A source from a trust company revealed that the supervision has made it clear that non-standard trusts need to carry out portfolio investment, and the proportion of a single asset in the portfolio may not be higher than 25%.
There are also trust sources said that the 25% ratio limit may not be officially implemented until the end of the year, and the non-standard portfolio is currently required to invest in at least two targets. To this end, various companies are accumulating underlying assets, and even consider adding a product department to coordinate various underlying assets, including exploring the product model of "non-standard + standard products".
It is understood that in 2023, the regulator has clearly pointed out that for non-standard investment, asset management trusts should, in principle, diversify risks in the form of portfolio investment, and the regulatory authorities will improve the relevant supporting systems and clarify the relevant requirements for portfolio investment.
A number of industry insiders said that the 25% ratio requirement was most likely for the implementation of the previous three-classification new regulations. In the short term, the new 25% ratio requirement may further reduce the new scale of non-standard trusts, after all, it is difficult to find at least 4 projects with the same investment time and cycle for portfolio investment and successfully promote them to investors. However, in the long run, diversification helps non-standard trusts to diversify and prevent risks.
In addition to the strict requirements for non-standard trusts, a trust company person also said that the supervision also focuses on the need for trust companies to reasonably classify asset management trusts and asset service trusts, that is, asset management trusts cannot be "alienated" into asset service trusts; Some products with lower fees (suspected channels) also need to pay attention to their risks.
The new fixed income trusts are no longer valued by the amortized cost method
For standard trusts, the latest requirements have also been made in this regulation.
A medium-sized trust company standard business source revealed that in a recent meeting, the regulator conveyed the spirit that fixed income trusts cannot be valued by the amortized cost method.
The above-mentioned trust company also said: "According to the communication of the compliance department, the subsequent new fixed-income trust products need to be valued by the market value method, and the fixed-income trust products of the existing investment bonds will most likely be rectified within a fixed period of time." ”
It is reported that there are currently two valuation methods for bonds, of which the market value method refers to the valuation according to the market value of the bonds held, and the net value of the product will fluctuate according to the daily market value changes of the bond varieties; The amortized cost method is based on the coupon rate (or agreed interest rate) and taking into account the premium or discount at the time of purchase, amortized evenly over its remaining term, and the income is accrued on a daily basis, and the net value of the product is not affected by fluctuations in the market value of the bond.
According to a number of industry insiders, many fixed-income trust products currently use the amortized cost method to match the stable investment needs of trust investors. However, in the long run, it is difficult for the amortized cost method to reflect the real fluctuations and changes in the bond market, especially in extreme market conditions, and the products valued by the amortized cost method are prone to liquidity risks.
A person in the standard business of a medium-sized trust company said that the regulatory meeting also conveyed the requirements of prudently controlling the investment ratio of urban investment bonds and the leverage ratio of products.
Regulators have taken action to guide the industry to strengthen risk prevention
In fact, since the beginning of this year, regulators have frequently taken action to guide trust companies to strengthen risk management and prevention.
For example, in June, the regulatory authorities issued the Notice on Further Strengthening the Compliance Management of the Cooperation Business between Trust Companies and Wealth Management Companies (hereinafter referred to as the "Notice") to trust companies. The notice pointed out that in view of the trust companies cooperating with wealth management companies to use the smoothing mechanism to adjust product returns, and to investigate the illegal investment in low-rated bonds for cash management wealth management, all trust companies should complete self-examination and carefully formulate rectification plans before June 30.
According to media reports, the State Administration of Financial Supervision recently issued the Administrative Measures for Information Disclosure of Asset Management Products (Draft for Comments) for some trust companies, bank wealth management companies and insurance asset management companies, clarifying the general provisions on information disclosure, including information disclosure responsibilities, methods, general information disclosure content, information disclosure contracts, etc.
In the view of industry insiders, in the future, with the increasing refinement of supervision, trust companies must strengthen their awareness of risk prevention and consciously investigate the risks existing in related businesses according to the latest regulatory requirements. At the same time, it is necessary to continue to improve its active management capabilities and reshape differentiated competitive advantages based on its own resource endowment.
Source of this article: Shanghai Securities News
Author: Ma Jiayue
WeChat editor: Guan Qiao
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