The rash attitude of internet companies to issue Internet financial products is worrying

Absrtact: There is no first step in the Internet financial sector, Baidu or will be broken. In response to the plan, the SFC said its commitment to target the annual yield of 8%, capital preservation insurance benefits do not meet the relevant laws and regulations, the SFC will be the compliance of the business

has not yet taken the first step in the Internet financial sector, Baidu or will be broken.

In response to the "hundred-fat" financial plan, the SFC said its commitment to target the annual return rate of 8%, capital preservation insurance benefits do not meet the relevant laws and regulations, the SFC will be the compliance of the business verification.

The regulatory response to the planned October 28 on the launch of the Baidu Financial Center banking platform can be scheduled to open a line of life. More to the industry's uproar is that Baidu's hundred pay has not yet obtained the fund Third-party payment license, which means that Baidu is still in the "unlicensed driving" stage.

In the internet finance in full swing today, the author believes that the regulatory layer should immediately introduce relevant documents, regulate the Internet companies with the fund's Third-party payment licences and fund companies to design, sell funds and financial products, both to protect the interests of investors, while avoiding potential risks.

Although Baidu sincerely said that strict compliance with regulatory regulations, to ensure that the business under the premise of legitimate compliance, so that investors get greater profits. At the same time, some market participants also called for government innovation, for the first Internet finance in the new field of IT companies should be tolerant, allow it to "resolutely try, bold to rush."

However, in the author's opinion, internet companies with it as the main business still have multiple risks in the course of Internet financial exploration.

First, internet companies are worrying about the rash of Internet financial products.

And do not say that Baidu "unlicensed driving" of the bold sweat, from Baidu completely without the Internet financial sector to try the 0 basis, eager to push products on the line to expose the suspicion of quick success.

In July of this year, Baidu's hundred pay received a third party payment license issued by the Central bank. Another according to the author understand, Baidu and Huaxia fund from contact to cooperation time but a few months time. So hasty online, that their homework is not ready.

Before, Ali and Tianhong fund cooperation, not only spent a lot of money to develop a software system, and experienced countless technical tests. More importantly, Alipay early in May 2011 to get the first batch of Third-party payment license, and, Alipay has been operating for many years experience and the corresponding customer funds security system. Hitwise released data shows that as of the second quarter of 2013, Alipay paid more than 60% of its market share in China's third party payment platform.

I do not beautify Ali, to crack down on Baidu's heart, but worry, if a large number already has a Third-party payment license and lack of corresponding financial field experience of the small and medium-sized companies also because of the huge temptation of internet finance blindly flocking into the words, the security and credibility of its platform can be imagined. So far, the central bank has issued 250 third-party payment licences altogether.

Second, the Internet companies on the financial unprofessional, the relevant sales rules do not understand, this will inevitably lead to the compliance of their products have loopholes.

If Baidu had previously publicized the 8%-year low error of the rate of return is not an inadvertent move, at least reflects its knowledge of the fund products do not even know where the regulatory red line, and even this point as a gimmick hype.

Moreover, the initial Internet financial main push products are generally mainly monetary funds. The rate of return for the money fund is generally between 4% and 5%, and how does it achieve the expected yield of 8%? This has sparked numerous doubts in the industry.

Third, "Hundred Hair" financial plan is by Baidu and Huaxia fund cooperation development. However, in the process of cooperation with the Internet giants, the fund company has been in a weak position, the fundamental cannot dominate, and there is no greater right of speech. The SEC has not realised that one day, internet companies have become the dominant provider of internet finance, and that fund companies or status passed only become product providers.

Previously, to reduce the cost of payment to protect the interests of investors, the SFC has been encouraging the fund sales agencies and Third-party payment agencies to cooperate. But the legislation aims to enhance the safe and orderly management of fund sales and settlement funds, to ensure the safety of fund investors, and not to regulate the sales behavior of Internet companies.

Therefore, it is more necessary to standardize the Internet financial sales behavior, which should also be the financial products publicity and sales, information disclosure, from product design to sales management, it is necessary to make further specifications. Electronic marketers ' exaggerated, eye-catching, or even second-shot Internet marketing methods do not apply to financial products.

Although Baidu as an Internet enterprise is not within the regulatory framework of the SFC, but if Baidu and the fund partners to launch any financial products, should be subordinate to the SFC under the jurisdiction of the Commission, therefore, the SFC has the responsibility to assume the supervisory responsibility.