Recently, the General Office of the China Banking Regulatory Commission ("CBRC") has issued the Interim Administrative Provisions for Audio and Video Records Taken at Sales Venues in Banking Financial Institutions (the "Provisions"), effective from October 20, 2017.
The Provisions set forth for the first time relatively systematic rules on the management of audio and video records that are taken at sales venues, bringing latest requirements largely in the following aspects. First, the scope of products subject to these provisions is further clarified. Article 2 of the Provisions expressly states that for government bonds and material precious metals sold by banking financial institutions on a commission basis, they may decide at their discretion whether to include such products into the management of audio and video records taken at sales venues, as the case may be, leaving other wealth management products and products sold on a commission basis all covered under the management of audio and video records. Second, self-purchase is regulated. Article 11 of the Provisions places restrictions over matters during the self-purchase, such as salesmen's practice of making operations on behalf of customers or interfering in the marketing processes. Third, institutions are required to design uniform and standard sales pitches. Article 20 of the Provisions notes that the sales pitches should contain at least a brief introduction of the product category, issuer, risk level, types of returns, degree of matching with the product, etc.