Circular of the General Office of the China Banking Regulatory Commission on Issuing the Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions
Circular of the General Office of the China Banking Regulatory Commission on Issuing the Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions
Circular of the General Office of the China Banking Regulatory Commission on Issuing the Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions
Yin Jian Ban Fa [2017] No. 110
August 23, 2017
For the purposes of further standardizing the selling of wealth management and consignment products by banking financial institutions, and effectively protecting the legitimate rights and interests of banking consumers, the Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions are hereby promulgated for your implementation.
Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions
Chapter I General Provisions
Article 1 These Provisions are formulated according to the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks and the Circular of the China Banking Regulatory Commission on Regulating the Consignment Sales Business of Commercial Banks (Yin Jian Fa [2016] No. 24) for the purposes of regulating the sale of wealth management and consignment sale products by banking financial institutions, effectively preventing and dealing with market chaos such as misleading sales and selling other products privately and unauthorized, and pragmatically protecting the legitimate rights and interests of banking consumers.
Article 2 Audio and video recordings at sales areas referred to in these Provisions (hereinafter referred to as "dual recordings") shall mean that a banking financial institution, when selling wealth management products issued by itself according to the law (hereinafter referred to as "the bank's own wealth management products") as well as financial products issued by cooperating organizations according to the law (hereinafter referred to as "consignment products") at its business premises, shall implement "dual recordings" management, i.e. set up a specific sale area, and install an electronic system in the specific sale area to make synchronized audio and video recording of each product's sale process.
Banking financial institutions selling treasury bonds and physical precious metals on consignment may, based on actual circumstances, decide on their own whether they will implement "dual recordings" management at special areas.
Article 3 These Provisions shall apply to banking financial institutions selling their own wealth management products as well as consignment products to individual consumers. Trust companies and postal savings banks acting in business agent capacity shall refer to these Provisions.
Chapter II Administration of Product Sale Areas
Article 4 Banking financial institutions selling their own wealth management products as well as consignment products at their business premises shall set up specific sale areas and install audio and video recording equipment therein. Where the area of business premises is small and not equipped to set up independent sale areas, fixed sales counter(s) may be set up, and managed according to the relevant provisions on "dual recordings" at special areas.
Banking financial institutions selling their own wealth management products as well as consignment products at their business premises shall conduct sales within the sale areas, and shall not conduct product sale activities outside the sale areas, except for consumers buying products through electronic equipment such as self-service terminals.
Article 5 Banking financial institutions shall set up prominent signs stating the words "sales areas" (or "sales counter") and "audio and video recording" within the sale areas, use eye-catching font size at prominent locations to remind consumers that they can obtain the relevant product information through the information enquiry platform, website or other media, and highlight risks clearly.
Article 6 Salespersons of banking financial institutions shall comply with the relevant regulatory requirements and possess the corresponding wealth management and consignment sale qualifications; the relevant information of salespersons and their sales qualification shall be publicized at the sales areas, unless otherwise stipulated by laws and regulations. Persons other than staff of the banking financial institution shall not carry out sales and marketing activities at its business premises.
Article 7 Banking financial institutions shall establish a unified product information enquiry platform, and a designated department shall be responsible for input and management of information in the platform. The product information enquiry platform shall record basic information of all the financial products which are currently on sale and for which the maturity period has not become due; products which are not included in the platform shall not be sold. The product information enquiry platform shall establish a list of product categories, strictly differentiate different types of own products and consignment products, public offering and private offering, and make full disclosure of product information; product information shall encompass product type, issuer, risk grade, scope of qualified investors, fee rates, fee collection method etc.
Banking financial institutions shall install terminals for login to their product information enquiry platform or provide hard copy product brochures at their business premises, to facilitate consumer access and verification of product information. Banking financial institutions shall not use the information enquiry platform to publicize private offering products.
Article 8 Product marketing materials provided by a banking financial institution within its sale areas shall be true and lawful, and reflect the product's main attributes fully; and shall not use tempting and misleading words to exaggerate earnings or conceal important information. The product marketing materials shall include highlighting of product risks, and shall use wordings and expressions which are eye-catching, basic and easy to understand. Therein, the cover page of marketing materials of a consignment product shall also state the name of the cooperating organization, and include the following statement: "This product is issued and managed by XX Organization (the cooperating organization); the consignment agency shall not be liable for the product's investments, redemption and risk management".
Article 9 Banking financial institutions shall publish their enquiry and complaint hotline number within the specific sale areas, to facilitate consumers' enquiry and confirmation of product information, and to report irregularities such as misleading sales and private selling of products etc.
Chapter III Administration of Audio and Video Recordings
Article 10 Banking financial institutions shall make synchronized audio and video recording of the sale process of their own wealth management products and consignment products, and record important sales stages such as marketing promotion, highlighting of the relevant risks and key information, consumer's confirmation and feedback completely and objectively; the contents of consumer's confirmation shall at least include that the consumer has a full understanding of the product risks highlighted by the salespersons etc. Banking financial institutions shall seek the consent of the consumer for the aforesaid audio and video recording; there shall be no sale of product if the consumer does not consent.
Article 11 Banking financial institutions shall make adequate disclosure of product risk information in electronic facilities such as self-service terminals, and shall also highlight to a consumer that if a salesperson starts marketing promotion, the consumer shall stop using the self-service terminal for purchase and make the purchase in the sales areas. Salespersons are prohibited to make purchase of product on behalf of customers through electronic equipment such as self-service terminals etc.
Article 12 Banking financial institutions shall ensure the quality of audio and video recordings, and ensure that the audio and video materials are clear, complete and coherent.
(1) the facial features of the salesperson and the consumer must be clearly recognizable in the video recording.
(2) the language expression of the salesperson and the consumer must be clear in the audio recording and synchronized with the video image.
Article 13 Banking financial institutions shall keep audio and video recording materials at least until six months after the product is terminated or six months after rescission of contract; where there is a dispute, the audio and video recordings shall be kept until the dispute is finally resolved. When a banking financial institution sells consignment products of other banking financial institutions, if the financial regulatory authorities of the State Council stipulate otherwise on the duration for retention of audio and video recording materials, such provisions shall prevail.
Article 14 Banking financial institutions shall implement stringent management of stored audio and video recording materials, shall not make manual alteration, tampering or deletion, and shall ensure speedy and accurate search and retrieval.
Article 15 Banking financial institutions shall back up their audio and video recording materials and data, and keep the backup data properly.
Article 16 Banking financial institutions shall adopt effective information security measures for their audio and video recording data storage and management system, and pragmatically protect the information security right of the consumers.
Article 17 Banking financial institutions shall comply with the relevant confidentiality provisions, and destroy the relevant materials in accordance with the requirements upon expiry of the retention period for the audio and video recording materials.
Chapter IV Internal Management System
Article 18 Banking financial institutions shall establish and improve upon a management system for audio and video recordings at specific sale areas, implement whole process management from recording, storing to retrieval for use, and supplement and revise the existing business management and internal control systems.
Article 19 A banking financial institution shall designate a lead and responsible department, establish a standard and unified business management system, and implement unified management of audio and video recording at specific sale areas.
Article 20 Banking financial institutions shall formulate standard operation procedures for sales activities, focus on consumer experience, design unified service jargon standards; the jargons shall at least include product type, issuer, risk grade, type of earnings, product compatibility, reflect the product nature and characteristics truthfully and comprehensively, and shall not mislead consumers into purchasing products which are not compatible with the consumer's risk threshold.
Article 21 The internal audit, internal control and compliance management departments, as well as the business and information technology departments of banking financial institutions shall, based on division of work, establish and effectively implement an internal supervision and inspection system which can cover audio and video recording work at specific sale areas, and increase the intensity and frequency of inspection over business premises which have multiple occurrences of high-risk products and complaints.
Article 22 Banking financial institutions shall include internal and external audit and inspection findings and effective lodgment of complaints by consumers into the performance appraisal system of
salespersons, and increase appraisal weights appropriately.
Article 23 Banking financial institutions shall establish an internal accountability system, impose the appropriate punishment for salespersons and the relevant accountable personnel who have violated the sale areas audio and video recording management system, based on the extent of the violation, and simultaneously pursue the liability of the higher-level administrative authorities.
Article 24 Banking financial institutions shall establish a contingency plan, implement contingency and protection measures, to ensure speedy response in the event of malfunction of the audio and video recording management system or equipment failure, and prompt recovery and emergency response.
Chapter V Supervision and Administration
Article 25 The CBRC and its branches shall implement supervision and administration according to the law over audio and video recording work at specific sale areas of banking financial institutions.
Article 26 The CBRC branches may, based on the actual conditions of the locality, implement "dual recordings" at special areas progressively for small and medium financial institutions in rural areas with genuine difficulties, and require them to submit implementation plan, transition measures, work progress etc.
Article 27 The CBRC and its branches shall evaluate or inspect the implementation of audio and video recording in sale areas of banking financial institutions, supervise correction promptly upon discovery of problems, and include the relevant information into the appraisal and evaluation of protection of consumer rights.
Article 28 Where a banking financial institution violates the requirements of these Provisions and causes serious harm to the legitimate rights and interests of consumers or causes adverse impact, the CBRC and its branches shall, according to the Banking Regulation Law of the People's Republic of China and the relevant provisions, adopt regulatory measures or impose administrative punishment according to the law, and pursue the liability of the relevant personnel.
Chapter VI Supplementary Provisions
Article 29 The CBRC shall be responsible for interpretation and revision of these Provisions.
Article 30 These Provisions shall be implemented with effect from October20, 2017.
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Yin Jian Ban Fa [2017] No. 110
August 23, 2017
For the purposes of further standardizing the selling of wealth management and consignment products by banking financial institutions, and effectively protecting the legitimate rights and interests of banking consumers, the Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions are hereby promulgated for your implementation.
Interim Provisions on the Administration of Audio and Video Recordings at Sales Areas of Banking Financial Institutions
Chapter I General Provisions
Article 1 These Provisions are formulated according to the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks and the Circular of the China Banking Regulatory Commission on Regulating the Consignment Sales Business of Commercial Banks (Yin Jian Fa [2016] No. 24) for the purposes of regulating the sale of wealth management and consignment sale products by banking financial institutions, effectively preventing and dealing with market chaos such as misleading sales and selling other products privately and unauthorized, and pragmatically protecting the legitimate rights and interests of banking consumers.
Article 2 Audio and video recordings at sales areas referred to in these Provisions (hereinafter referred to as "dual recordings") shall mean that a banking financial institution, when selling wealth management products issued by itself according to the law (hereinafter referred to as "the bank's own wealth management products") as well as financial products issued by cooperating organizations according to the law (hereinafter referred to as "consignment products") at its business premises, shall implement "dual recordings" management, i.e. set up a specific sale area, and install an electronic system in the specific sale area to make synchronized audio and video recording of each product's sale process.
Banking financial institutions selling treasury bonds and physical precious metals on consignment may, based on actual circumstances, decide on their own whether they will implement "dual recordings" management at special areas.
Article 3 These Provisions shall apply to banking financial institutions selling their own wealth management products as well as consignment products to individual consumers. Trust companies and postal savings banks acting in business agent capacity shall refer to these Provisions.
Chapter II Administration of Product Sale Areas
Article 4 Banking financial institutions selling their own wealth management products as well as consignment products at their business premises shall set up specific sale areas and install audio and video recording equipment therein. Where the area of business premises is small and not equipped to set up independent sale areas, fixed sales counter(s) may be set up, and managed according to the relevant provisions on "dual recordings" at special areas.
Banking financial institutions selling their own wealth management products as well as consignment products at their business premises shall conduct sales within the sale areas, and shall not conduct product sale activities outside the sale areas, except for consumers buying products through electronic equipment such as self-service terminals.
Article 5 Banking financial institutions shall set up prominent signs stating the words "sales areas" (or "sales counter") and "audio and video recording" within the sale areas, use eye-catching font size at prominent locations to remind consumers that they can obtain the relevant product information through the information enquiry platform, website or other media, and highlight risks clearly.
Article 6 Salespersons of banking financial institutions shall comply with the relevant regulatory requirements and possess the corresponding wealth management and consignment sale qualifications; the relevant information of salespersons and their sales qualification shall be publicized at the sales areas, unless otherwise stipulated by laws and regulations. Persons other than staff of the banking financial institution shall not carry out sales and marketing activities at its business premises.
Article 7 Banking financial institutions shall establish a unified product information enquiry platform, and a designated department shall be responsible for input and management of information in the platform. The product information enquiry platform shall record basic information of all the financial products which are currently on sale and for which the maturity period has not become due; products which are not included in the platform shall not be sold. The product information enquiry platform shall establish a list of product categories, strictly differentiate different types of own products and consignment products, public offering and private offering, and make full disclosure of product information; product information shall encompass product type, issuer, risk grade, scope of qualified investors, fee rates, fee collection method etc.
Banking financial institutions shall install terminals for login to their product information enquiry platform or provide hard copy product brochures at their business premises, to facilitate consumer access and verification of product information. Banking financial institutions shall not use the information enquiry platform to publicize private offering products.
Article 8 Product marketing materials provided by a banking financial institution within its sale areas shall be true and lawful, and reflect the product's main attributes fully; and shall not use tempting and misleading words to exaggerate earnings or conceal important information. The product marketing materials shall include highlighting of product risks, and shall use wordings and expressions which are eye-catching, basic and easy to understand. Therein, the cover page of marketing materials of a consignment product shall also state the name of the cooperating organization, and include the following statement: "This product is issued and managed by XX Organization (the cooperating organization); the consignment agency shall not be liable for the product's investments, redemption and risk management".
Article 9 Banking financial institutions shall publish their enquiry and complaint hotline number within the specific sale areas, to facilitate consumers' enquiry and confirmation of product information, and to report irregularities such as misleading sales and private selling of products etc.
Chapter III Administration of Audio and Video Recordings
Article 10 Banking financial institutions shall make synchronized audio and video recording of the sale process of their own wealth management products and consignment products, and record important sales stages such as marketing promotion, highlighting of the relevant risks and key information, consumer's confirmation and feedback completely and objectively; the contents of consumer's confirmation shall at least include that the consumer has a full understanding of the product risks highlighted by the salespersons etc. Banking financial institutions shall seek the consent of the consumer for the aforesaid audio and video recording; there shall be no sale of product if the consumer does not consent.
Article 11 Banking financial institutions shall make adequate disclosure of product risk information in electronic facilities such as self-service terminals, and shall also highlight to a consumer that if a salesperson starts marketing promotion, the consumer shall stop using the self-service terminal for purchase and make the purchase in the sales areas. Salespersons are prohibited to make purchase of product on behalf of customers through electronic equipment such as self-service terminals etc.
Article 12 Banking financial institutions shall ensure the quality of audio and video recordings, and ensure that the audio and video materials are clear, complete and coherent.
(1) the facial features of the salesperson and the consumer must be clearly recognizable in the video recording.
(2) the language expression of the salesperson and the consumer must be clear in the audio recording and synchronized with the video image.
Article 13 Banking financial institutions shall keep audio and video recording materials at least until six months after the product is terminated or six months after rescission of contract; where there is a dispute, the audio and video recordings shall be kept until the dispute is finally resolved. When a banking financial institution sells consignment products of other banking financial institutions, if the financial regulatory authorities of the State Council stipulate otherwise on the duration for retention of audio and video recording materials, such provisions shall prevail.
Article 14 Banking financial institutions shall implement stringent management of stored audio and video recording materials, shall not make manual alteration, tampering or deletion, and shall ensure speedy and accurate search and retrieval.
Article 15 Banking financial institutions shall back up their audio and video recording materials and data, and keep the backup data properly.
Article 16 Banking financial institutions shall adopt effective information security measures for their audio and video recording data storage and management system, and pragmatically protect the information security right of the consumers.
Article 17 Banking financial institutions shall comply with the relevant confidentiality provisions, and destroy the relevant materials in accordance with the requirements upon expiry of the retention period for the audio and video recording materials.
Chapter IV Internal Management System
Article 18 Banking financial institutions shall establish and improve upon a management system for audio and video recordings at specific sale areas, implement whole process management from recording, storing to retrieval for use, and supplement and revise the existing business management and internal control systems.
Article 19 A banking financial institution shall designate a lead and responsible department, establish a standard and unified business management system, and implement unified management of audio and video recording at specific sale areas.
Article 20 Banking financial institutions shall formulate standard operation procedures for sales activities, focus on consumer experience, design unified service jargon standards; the jargons shall at least include product type, issuer, risk grade, type of earnings, product compatibility, reflect the product nature and characteristics truthfully and comprehensively, and shall not mislead consumers into purchasing products which are not compatible with the consumer's risk threshold.
Article 21 The internal audit, internal control and compliance management departments, as well as the business and information technology departments of banking financial institutions shall, based on division of work, establish and effectively implement an internal supervision and inspection system which can cover audio and video recording work at specific sale areas, and increase the intensity and frequency of inspection over business premises which have multiple occurrences of high-risk products and complaints.
Article 22 Banking financial institutions shall include internal and external audit and inspection findings and effective lodgment of complaints by consumers into the performance appraisal system of
salespersons, and increase appraisal weights appropriately.
Article 23 Banking financial institutions shall establish an internal accountability system, impose the appropriate punishment for salespersons and the relevant accountable personnel who have violated the sale areas audio and video recording management system, based on the extent of the violation, and simultaneously pursue the liability of the higher-level administrative authorities.
Article 24 Banking financial institutions shall establish a contingency plan, implement contingency and protection measures, to ensure speedy response in the event of malfunction of the audio and video recording management system or equipment failure, and prompt recovery and emergency response.
Chapter V Supervision and Administration
Article 25 The CBRC and its branches shall implement supervision and administration according to the law over audio and video recording work at specific sale areas of banking financial institutions.
Article 26 The CBRC branches may, based on the actual conditions of the locality, implement "dual recordings" at special areas progressively for small and medium financial institutions in rural areas with genuine difficulties, and require them to submit implementation plan, transition measures, work progress etc.
Article 27 The CBRC and its branches shall evaluate or inspect the implementation of audio and video recording in sale areas of banking financial institutions, supervise correction promptly upon discovery of problems, and include the relevant information into the appraisal and evaluation of protection of consumer rights.
Article 28 Where a banking financial institution violates the requirements of these Provisions and causes serious harm to the legitimate rights and interests of consumers or causes adverse impact, the CBRC and its branches shall, according to the Banking Regulation Law of the People's Republic of China and the relevant provisions, adopt regulatory measures or impose administrative punishment according to the law, and pursue the liability of the relevant personnel.
Chapter VI Supplementary Provisions
Article 29 The CBRC shall be responsible for interpretation and revision of these Provisions.
Article 30 These Provisions shall be implemented with effect from October20, 2017.
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