Fund subsidiaries are similar to the asset management of securities companies in some respects. They can raise a single fund to invest in various assets, or they can raise collective funds to participate in the products transferred by exchanges and collective trusts.
However, there are still significant differences in investment restrictions, investor restrictions, investment efficiency and regulatory constraints among trust, brokerage asset management and fund subsidiaries.
First, the difference between a fund subsidiary and a trust.
1 investment restrictions
The trust plan shall not invest in the bill assets in the cooperation between banks and trust companies; Fund subsidiaries are not restricted in various investment targets.
Legal basis: The CBRC issued the Notice on Bill Trust Business of Trust Companies at the beginning of 20 12. According to the requirements of the Notice, trust companies are not allowed to carry out various forms of bill asset transfer/transferee business with commercial banks.
At the same time, for the existing bill trust business, the trust company should strengthen risk management, and no new bill business should be carried out during the duration of the trust project, and it should be terminated immediately after the expiration and cannot be extended.
2 the number of investors limit
No more than 50 natural person investors with a trust plan of less than 3 million, and no more than 200 natural person investors with a fund subsidiary of less than 3 million.
Legal basis: The Administrative Measures for Collective Fund Trust Plans of Trust Companies stipulates that "the number of natural persons in a single collective fund trust plan shall not exceed 50, but the number of natural person investors and qualified institutional investors with a single entrustment amount of more than 3 million yuan is not limited";
The Pilot Measures for Asset Management Business of Specific Clients of Fund Management Companies stipulates that "the number of clients of a single asset management plan shall not exceed 200, but the number of investors with a single entrusted amount of more than RMB 3 million is not limited".
3 investment efficiency
Trust plans need prior approval to invest in real estate projects, and fund subsidiaries do not need approval to operate real estate projects;
Legal basis: The Measures for the Pilot Management of Trust Companies' Real Estate Investment Trust Scheme stipulates that "a trust company shall submit the following documents to the China Banking Regulatory Commission when applying for the establishment of a real estate investment trust scheme" and "the trust unit can only be sold after the application for the issuance of the real estate investment trust scheme is approved".
4 Regulatory restrictions
There are many regulatory constraints on trusts, and relevant departments have issued documents to restrict and prohibit trust companies from carrying out bill business, real estate business and government platform business (such as "Document No.462" issued by four ministries and commissions); At present, there are few restrictions on fund subsidiaries.
5 Net capital constraint
Trust companies issue collective fund trust plans, which occupy more net capital; There is no net capital limit for fund subsidiaries at present. Legal basis: Provisions in the Measures for the Administration of Net Capital of Trust Companies.
6. Investment ability
Trust companies' investment ability in the capital market is generally weak; Relying on the investment research team and investment management experience of the parent company, the fund subsidiaries have advantages in investing in financial products traded on the exchange.
7. Payment rules
In practice, the current collective fund trust plan will abide by the agreement of "rigid redemption" by default; However, the special asset management plan of the fund subsidiary does not do this.
The so-called "rigid redemption" means that after the trust product expires, the trust company must distribute the principal and income to investors. When the trust plan can't be paid as scheduled or it is difficult to pay, the trust company needs to handle it at the bottom. In fact, there is no legal requirement for trust companies to make rigid payment in China, which is just an unwritten rule in the trust industry.
8. Collective financing capacity
Some large trust companies have special direct sales teams and stable fund-raising ability, and some can invest with their own funds or trust fund pools, which is relatively safe when operating large-scale fund-raising projects; However, the fund subsidiaries have been established for a short time, and the fundraising channels are limited, so the sales pressure of collective products is greater. However, if the shareholders of fund subsidiaries have strong sales strength (for example, shareholders are third-party sales organizations or shareholders are trust companies with strong self-sales strength), some sales problems can also be solved.
Second, the difference between fund subsidiaries and securities firms.
1 legal relationship
Brokerage asset management is a trust relationship, and fund subsidiaries are trust relationships. Legal basis: New Fund Law.
2 investment restrictions
There are three types of products for asset management of securities firms, and the targeted asset management plan is limited to a single capital investment, with fewer investment restrictions; The investment scope of the collective asset management plan is limited to products traded on exchanges, financial management of commercial banks, collective fund trust plans, etc. , and the raised funds cannot be invested in equity, creditor's rights, lp beneficiary rights and property rights that have not been transferred on the exchange;
The special asset management plan of securities firms is mainly aimed at enterprise asset securitization. 2014119 The CSRC issued the Regulations on the Management of Asset Securitization Business of Subsidiaries of Securities Companies and Fund Management Companies and its supporting documents. The administrative examination and approval of enterprise asset securitization business was cancelled, and the post-event filing system and negative list management of basic assets were formally implemented. The investment scope of the special asset management plan of the fund subsidiary is wider.
At the same time, in the cooperation between banks and securities companies, neither the asset management of brokers nor the funds raised by fund subsidiaries are allowed to invest in industries with high pollution, high energy consumption and other countries that prohibit investment. In stock pledged repo, the orientation and assembly of securities companies' asset management can participate, but fund subsidiaries cannot directly participate.
Legal basis: Notice on Standardizing Matters Related to the Cooperation between Securities Companies and Banks in Developing Directional Asset Management Business.
3. Main constraints
In the cooperation between banks and securities companies, when the customer is a bank, the total assets of the customer cannot be less than 30 billion. The customers of fund subsidiaries are not restricted. Legal basis: Notice on Standardizing Matters Related to the Cooperation between Securities Companies and Banks in Developing Directional Asset Management Business.
4 Net capital constraint
Brokerage asset management belongs to securities companies, and it is limited by net capital. Fund subsidiaries are not bound by net capital.
5 collective financing ability
The brokerage business system is relatively strong, and it is more powerful for brokers to manage assets and raise collective funds; However, the fund subsidiary has been established for a short time and its fundraising ability is limited. However, if the shareholders of the fund subsidiary have strong sales strength, some sales problems can also be solved.