Home » The release of new regulations on the management of public securities transaction fees promotes the further optimization of the research business ecology of securities firms_ Oriental Fortune Network

The release of new regulations on the management of public securities transaction fees promotes the further optimization of the research business ecology of securities firms_ Oriental Fortune Network

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The release of new regulations on the management of public securities transaction fees promotes the further optimization of the research business ecology of securities firms_ Oriental Fortune Network

New regulations on the management of public securities transaction fees have been released by the China Securities Regulatory Commission, aiming to optimize the research business ecology of securities firms. The “Regulations on the Management of Securities Transaction Fees for Publicly Offered Securities Investment Funds” will officially be implemented on July 1, 2024, following the formulation and issuance on April 19.

The new regulations, consisting of 19 articles, focus on reducing fund stock transaction commission rates, limiting the fund manager’s securities transaction commission distribution ratio, enhancing compliance and internal control requirements, and specifying disclosure requirements for transaction commission information at the fund manager level.

Experts and analysts have welcomed the regulations, noting that they will guide the industry back to its research roots and strengthen compliance responsibilities. The rules aim to close potential loopholes in market making commissions, soft commissions, transfer settlements, and third-party payments, ultimately aiming to improve investor returns and promote the construction of high-quality capital markets.

The regulations also address the use of bond-settled funds and provide more complete provisions in this area. Experts believe this will create more business opportunities for securities companies with strong bond-settled fund operations and lead to a more reasonable and transparent commission distribution system.

The new regulations will impact the research business of securities firms, particularly in terms of warehousing commissions. Some predict a 38% drop in total annual stock trading commissions of public funds, leading to a more market-oriented commission distribution system.

Despite the challenges, securities firms are actively exploring opportunities for performance growth under the new regulations. Many companies are focusing on strengthening research capabilities, expanding customer bases, and enhancing comprehensive financial services. Implementing business strategies that emphasize product retention, customer returns, investment advisory services, and research activities will be key to adapting to the changing regulatory environment.

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In conclusion, the new regulations aim to ensure the rights of investors, reduce costs, and promote efficiency in public offerings and securities firms. While some adjustments are required, the industry is optimistic about the potential for growth and development in response to these changes.

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