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recently, the hubei securities regulatory bureau issued a notice to disclose the illegal behavior of wuhan bojia fund sales co., ltd. (hereinafter referred to as bojia fund) under its jurisdiction, and took relevant measures against the company and its then legal representative jiang xiang. it is understood that this is the third time that the company has been subject to regulatory measures since 2018.

the latest industrial and commercial information shows that bojia fund has changed its name to wuhan baikun fund sales co., ltd., but still uses the bojia fund website. judging from the funds displayed on its official website, some products of institutions that had previously terminated cooperation with it are still in the display area, and the number exceeds the actual number of funds that can be sold on behalf of others.

the regulator took measures three times in seven years

from requiring the submission of a written rectification report, to suspending business for three months, and then to suspending business for twelve months, bojia fund has been subject to three regulatory measures by the hubei securities regulatory bureau since 2018.

on august 29, the hubei securities regulatory bureau issued a notice to disclose the violations of bojia fund. judging from the content of this disclosure, there are also overlaps with previous ones.

as for the violations investigated in this investigation, first, the equity information submitted to the regulatory authorities was not true, accurate and complete; second, fund products were sold without a written sales agreement; third, the company's then legal representative, chairman and general manager held operational positions in other institutions, and there was confusion with other companies in business operations and personnel management; fourth, the net value of high-liquidity assets did not reach 20 million yuan.

public information shows that on october 10, 2022, the institution was notified by the hubei securities regulatory bureau to take regulatory measures. the violations at that time included: first, the net value of high-liquidity assets did not meet the statutory standard of 20 million yuan; second, the access to public funds was not reviewed by the product access committee; third, compliance review opinions were not issued for some newly sold fund products; fourth, sales revenue was used as the main evaluation indicator for fund sales business, and indicators such as fund sales holdings and investors' long-term returns were not included in the sales personnel evaluation index system; fifth, sufficient risk disclosure was not made to some customers; and sixth, some customers were not fully understood.

in contrast, the net value of high-liquidity assets has not reached 20 million yuan, and the sales of funds are not in compliance with regulations. the former is a necessary basis to ensure that sales institutions have sufficient funds to deal with daily operations and liquidity risks. at present, many companies have a net value of high-liquidity assets of less than 20 million yuan due to poor fund management and insufficient risk control.

the stubborn problem of non-compliant fund sales is generally caused by the lack or insufficiency of internal control in the industry. in order to complete performance plans, some institutions or practitioners promise returns, engage in false advertising, and misleading sales, which not only cannot be implemented in paper contracts but also bring many hidden dangers to investors' financial planning.

in response to the violation by bojia fund, hubei securities regulatory bureau has taken relevant measures against the company and its then legal representative jiang xiang. according to the disclosed content, administrative supervision measures were taken against bojia fund to suspend relevant business for 12 months; administrative supervision measures were taken against jiang xiang to identify him as an inappropriate candidate, and he shall not serve as a director, supervisor, senior manager or branch manager of a securities company, fund sales company or securities investment consulting company or actually perform the above duties within 3 years from the date of the decision on the supervision measures.

the official website displays more than 1,500 funds, and some products have terminated cooperation

the reason why bojia fund has attracted attention is that it was established earlier in the industry, has many cooperative institutions, and sells a large number of funds on behalf of others. the company was established in may 2015 and is one of the first independent fund sales institutions in hubei approved by the china securities regulatory commission. it is also a joint member of the asset management association of china.

from the perspective of the types of funds currently sold by bojia fund, the company's official website shows that it covers eight types of funds, including stock, mixed, bond, index and money, involving more than 1,500 funds. from the introduction of some partners, china universal asset management, citic prudential fund, invesco great wall fund and many other public fund institutions are displayed on the official website homepage.

however, judging from the announcements released by fund companies, some have already clearly terminated their cooperation with them. for example, citic prudential fund announced on may 20 this year that the fund company and bojia fund had reached an agreement that bojia fund would terminate the agency sales of all its funds and stop handling fund sales-related businesses starting from may 20 this year.

in addition, several institutions such as china post fund and founder fubon fund also announced the termination of cooperation with bojia fund. however, judging from the available funds on bojia fund's official website, some of the company's products are still on display. taking citic prudential fund as an example, more than 30 of its products are displayed on the product page of bojia fund's official website, and there is a purchase entrance after entering the details page.

in addition to the clear termination of cooperation with it, some public funds also announced that they would suspend cooperation with bojia fund, and the company has now changed its name to wuhan baikun fund sales co., ltd. however, the company's official website is still consistent with the previous bojia fund website page. although some data were updated on march 29 this year, the sales links of related products are still listed.

according to the latest company names, wind statistics show that there are still 43 public funds cooperating with wuhan baikun fund sales co., ltd., and the number of funds sold on behalf of the company has reached 1,147. in terms of the number of products sold by fund companies, gf fund has the most, with a total of 395 products sold on behalf of the company; in addition, the number of products sold on behalf of huitianfu fund and huaan fund exceeds 200; in addition, all products of zhonghai fund and changan fund are in the sales sequence.