CBRC： Non-bank personnel are prohibited from engaging in sales and other activities at business outlets.

　　BEIJING, May 13 (Xinhua) According to the website of the China Banking Regulatory Commission, the China Banking Regulatory Commission recently issued the Notice on Regulating the Agency Sales Business of Commercial Banks (hereinafter referred to as the Notice). The Notice requires that non-bank personnel are prohibited from engaging in product promotion, sales and other activities at business outlets, and products on consignment should not be confused with deposits or wealth management products issued by themselves.

　　The Notice is divided into seven parts, namely, basic principles, internal management system of consignment business, management of cooperative institutions, access management of consignment products, sales management, information disclosure and confidentiality management, and supervision and management, with a total of 40 articles.

　　The Notice clarifies that the consignment business should be carried out in accordance with four principles: compliance with laws and regulations, compliance with the qualification requirements for financial products on consignment, strengthening the appropriate management of investors, and establishing a risk isolation system between consignment business and other businesses. Commercial banks can only sell financial products issued by financial institutions that are supervised and managed by CBRC, CSRC and CIRC according to law and hold financial licenses, and may not sell products issued by institutions outside the scope, except for government bonds, physical precious metals and other provisions of CBRC.

　　The Notice stipulates that commercial banks should establish and improve the management system of consignment business, and the head office will implement centralized and unified management of consignment business. The head office of a commercial bank shall conduct due diligence on cooperative institutions and implement list management. In principle, the head office shall sign a consignment agreement with the headquarters of the cooperative organization, and the head office shall examine and approve the consignment products. Commercial banks should strengthen the management of investors’ appropriateness, make clear the consignment attributes of products in the sales process, fully reveal the risks of consignment products, and must not mislead customers to buy products by exaggerating publicity or false publicity, and should implement audio and video recording in accordance with relevant regulations. Commercial banks should fulfill the obligation of customer information confidentiality according to law, urge cooperative institutions to disclose product information in a timely, accurate and complete manner, and establish customer complaints and emergency handling mechanisms with cooperative institutions.

　　The Notice requires that commercial banks should clearly authorize sales personnel and the scope of their products on consignment, prohibit unauthorized or beyond the scope of authorization to carry out consignment business, prohibit non-bank personnel from engaging in product promotion, sales and other activities at business outlets, and must not confuse consignment products with deposits or wealth management products issued by them.