Insurance asset management product management measures introduced!Basic pension supplement for qualified investors

Insurance asset management product management measures introduced!Basic pension supplement for qualified investors
Sauna Night News (Reporter Pan Yichun) On March 25, the China Banking and Insurance Regulatory Commission said that the “Interim Measures for the Management of Insurance Asset Management Products” (hereinafter referred to as the “Measures”) have been passed and will be officially implemented from May 1 this year.The Measures consist of eight chapters and sixty-six articles, covering product catalogs, product issuance, survival and termination, product investment and management, etc.Sauna, Yewang noticed that compared with the “Interim Measures for the Management of Insurance Asset Management Products (Draft for Comment)” (hereinafter referred to as the “Draft for Comment”) published by the regulatory authorities in November last year, some provisions have been increased or decreased, but overallThe size of the official documents is not large, and the key terms and indicators have not changed.The introduction of the “Measures” is definitely of great significance to the insurance asset management industry. As of the end of 2019, the balance of insurance asset management products has reached 2.USD 76 trillion, of which, debt investment plans and equity investment plans are mainly invested in infrastructure projects such as transportation, energy, and water conservancy, and have become an important tool for insurance funds and other long-term funds to connect with the real economy; portfolio insurance asset management products are mainly invested in stocks and bondsThe open market varieties have enriched insurance fund allocation methods and strategies, and guided long-term funds to participate in the capital market.The official document contains adjustments for qualified investors, including the addition of representatives from the Banking and Insurance Regulatory Commission for retirement funds. In terms of merger requirements, the “Measures” added exclusion clauses in accordance with the latest adjustments to regulatory policies.In terms of investor qualifications, the basic pensions, social security funds, corporate annuities, etc. are clearly expressed as product investors to better reflect the long-term capital orientation of insurance asset management products and services.Indeed, a comparison between Sauna and Yewang found that there are only three provisions in the draft for comments on the concept of qualified investors, but the “Measures” add institutions that are subject to supervision by the financial supervision and management department and the asset management products they issue, as well as basicThere are two pension funds, social security fund, enterprise annuity and other pension funds.In addition, in response to the conditions for insurance asset management institutions to carry out insurance asset management products business, the “Measures” also deleted the content of the consultation draft “having rich professional management experience and stable past investment performance”.At the same time, the “solution” adopts the opinion of the custodian bank in terms of the custodian’s responsibilities, and adjusts the expression of the custodian function, which is consistent with the regulatory provisions of other asset management products;The details are clarified in other regulatory regulations and better connected with the recently announced related party transaction regulatory regulations.It is still stipulated that insurance asset management products shall not guarantee capital preservation. However, although some provisions have been adjusted, some key provisions and indicators of the “Measures” have not changed.For example, the “Measures” stipulates that the investment scope of insurance asset management products includes national debt, local government bonds, central bank bills, government agency bonds, financial bonds, bank deposits and other assets. This investment scope is related to wealth management products and private equity management plan investments.The scope is generally consistent.At the same time, the “Solution” still stipulates that insurance asset management institutions that carry out insurance asset management products business shall not promise to guarantee capital and guarantee income. Investors invest in insurance asset management products, make prudent decisions based on their own capabilities, and independently bear investment risks.According to the requirements, insurance asset management products can be divided into fixed income products, equity products, commodities and financial derivatives products and mixed products.Among them, the proportion of fixed income products invested in debt assets is not less than 80%, the proportion of equity products invested in equity assets is not less than 80%, and the proportion of commodities and financial derivatives products invested in commodities and financial derivativesNo less than 80%, mixed products are invested in debt assets, equity assets, commodities and financial derivatives assets and the investment ratio of any asset does not meet the standards of the first three products.Regarding investment in non-standardized debt assets, the Measures stipulate that the balance of all portfolio products managed by the same insurance asset management institution shall be invested in the balance of non-standardized debt assets, and shall not exceed the net assets of all portfolio products under its management at any point in time.35%.Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the Development Research Center of the State Council, dissected the sauna. Yewang said that tightening the proportion of investment in non-standard assets (35%) will help reduce the risk of investing in non-standard assets and standardize products.Both liquidity and publicity will increase, but the liquidity risk and market risk premium will be diluted accordingly, and the rate of return will show a downward trend, which will likely increase the difficulty of increasing the rate of return of insurance funds.Subsequent supplementation of the effect of the implementation of the “Measures” by targeted sexual partners, Zhu Junsheng stepped to the sauna, Yewang said that the “Measures” are connected with the new rules of asset management, unified standards with the bank’s wealth management private equity management, and unified various categoriesInstitutional rules for insurance asset management products and the introduction of insurance asset management product sizes can further clarify regulatory requirements and business specifications, and practical market players can better cooperate in practical operations.Overall, the “Measures” help to maintain a smooth business transition and play the role of insurance funds in supporting the real economy.It is worth noting that the “Measure” takes into account the differences in product form, transaction structure, capital investment, etc. of different insurance asset management products. Then, on this basis, respectively formulate debt rights investment plans, equity investment plans and portfolioSupporting specifications for insurance asset management products, refine regulatory standards, and improve the pertinence of regulatory policies.Sauna, Ye Wang Pan Yichun Editor Chen Li proofreading Li Ming