Today, the Tibet Securities Regulatory Bureau issued an announcement to order Magpie Wealth to suspend related businesses for 6 months.Due to the supervision and management measures to suspend related business for 6 months, the company's related fund sales and services may be suspended.What should investors do in the event of a business suspension?Especially when it involves investors who need to handle redemption business, what should the original institution do when the original institution cannot provide relevant services?
Every reporter Ren Fei Every editor Xiao Ruidong
Today (July 7), the Tibet Securities Regulatory Bureau issued an announcement that Magpie Wealth Fund Sales Co., Ltd. has involved a number of violations in terms of operation management, internal control and information technology, and has been ordered to suspend relevant business for 6 months. Supervision and management measures .
However, as an independent fund sales agency, the company has sold more than 1,700 public funds (all shares are counted).As business is suspended, holders who purchase fund shares through this channel may face the risk of service interruption.Some people in the public offering industry said that it is necessary for customers to initiate a transfer of custody to the direct sales account of the fund company to facilitate subsequent business operations.
Frequent executive turnover leads to compliance loopholes
Since the change of legal representative on October 24, 2019, in less than two years, the "leader" of Magpie Wealth Fund Sales Co., Ltd. (hereinafter referred to as Magpie Fortune) has changed again.However, under the background of frequent changes of executives, the loopholes in corporate governance are also seen by supervision.
On July 7, the Tibet Securities Regulatory Bureau issued an announcement to order Magpie Fortune to suspend related businesses for 6 months, which involved a number of violations in operation, internal control, and information technology. Decision to issue warning letter measures.
From the supervision and verification matters, the reporter found that Magpie Fortune did not renew the license from the China Securities Regulatory Commission within 5 working days from the date of the change of the items recorded in the business license (legal representative), and the former general manager Zhang Jian was in Beijing during his tenure. Rongwei Tongda Technology Co., Ltd. served as a manager (resigned in March 2022) and did not file with the Tibet Securities Regulatory Bureau.
The reporter learned from Qixinbao that Wang Zhengfeng entered the executive list and became a legal representative on September 24, 2021. The predecessor Wang Jian took office on October 24, 2019, and Chen Hao quit at that time.According to the regulatory statement, during his tenure as the company's chairman and legal representative, Wang Zhengfeng did not renew the license from the China Securities Regulatory Commission within 5 working days from the date of the change of the legal representative, and the former chairman resigned and did not Conduct outgoing audits.
Generally speaking, due to the financial business involved, it is necessary to audit the departure of core executives to ensure that the departure is compliant and that there are no remaining problems.Someone in the legal profession said in an exchange with reporters on WeChat on July 7, "The outgoing audit can either endorse the responsibility of the former executives, or make a responsibility cut for the new executives, that is, whoever is responsible for the affairs during their tenure. If you don’t do an outgoing audit, it will be difficult to explain any disputes over duties and responsibilities in the future.”
In other words, the endorsement of the responsibility of the executives is to clarify the "decision-making responsibilities" of each session.Obviously, Magpie Fortune did not implement the relevant regulations and report them as required.Not only that, the reporter found on the company's official website that on the display of the company's securities and futures business license, the legal representative was still shown as Wang Jianzheng, and among the management team, the chairman, general manager, chief risk officer, etc. To be added.
Image source: Screenshot of the official website of Magpie Fortune
Today, the reporter tried to contact the official phone number of Magpie Fortune, but no one answered.
Investors may need to transfer custody to the direct sales account of the fund company
Since Magpie Wealth was ordered to suspend the supervision and management measures of related businesses for 6 months, the related fund sales and services related to the company may be suspended.Some people in the public fundraising industry said in an exchange with reporters on WeChat on July 7 that if the agency is suspended by supervision, its online and offline services will not be able to be provided normally.
In fact, since consumers who purchase funds through such channels can only apply for redemption through the original channel in principle, when the service provider shuts down, it will inevitably affect investors' normal redemption operations."You can redeem it wherever you subscribe," said a person in the public offering industry in South China.
Wind statistics show that as of July 7, 2022, Magpie Wealth has sold 1,768 public funds, involving 70 public fund institutions, and 9 new funds have been sold this month.Judging from the funds sold on an agency basis, there are 62 newly issued funds this year (all shares are counted), many of which are non-regular open products.
What should investors do in the event of a business suspension?Especially when it involves investors who need to handle redemption business, what should the original institution do when the original institution cannot provide relevant services?"Daily Economic News" interviewed a number of fund companies today and learned that it can be redeemed by transferring custody to the direct sales account of the fund company.
In response to reporters on WeChat on July 7, a public fundraiser in South China mentioned that if the channel needs to be rectified, the customer can still redeem it, but it needs to be transferred to custody, and it needs to be initiated by the customer.Some people from the public fundraising circle in Beijing also said in an exchange with reporters on WeChat on July 7 that the company will contact customers to submit applications and transfer the fund shares it holds to the company's direct sales channels.
People in the public offering industry in South China said that if the application is not submitted by itself, it will be handled separately according to whether the holder has opened a direct sales account in the corresponding fund company.For those who have opened a direct sales account, the fund company will uniformly complete the transfer of custody of the relevant fund shares, and the holder can conduct follow-up business operations through the fund company's direct sales channel.
However, if the holder does not open a direct sales account with the fund company, the fund company will also open a direct sales account for it.However, for such direct sales accounts opened by the fund company on behalf of the holder, the follow-up business operations of the account will be restricted. Carry out subsequent business operations.
(Editor in charge: Li Rong)
