The thinking of Citi bank falling into the "income gate"

-Zheng Zhang Yu newspaper published last week, "Citi's qdii offshore foreign debt annual return of 8% suspect" article in the community has caused widespread impact. In fact, not only Citibank, a period of time before the financial media have reported the "tens of millions of millions of million" "negative Weng" article also directed at foreign banks in China's private banking business and high-end financial products business. It is reported that HSBC Private Bank (Switzerland) Limited (hereinafter referred to as HSBC Private Bank) to domestic customers recommended financial products services to domestic many high-end customers suffered huge losses.　　In addition to HSBC private banks, DBS, ABN AMRO and other private banks in Hong Kong have been selling accu-mulator products that have caused mainland investors, including Beijing, Shanghai and Guangzhou, to suffer losses of more than billions of yuan, and disputes over similar incidents are escalating. Citi's reputation as one of America's most influential commercial and investment banks is clear. For such a big-brand international bank, why the Chinese customer market in the development of a little gestures? Moreover, its market-exploiting approach also clearly violates the relevant regulations of the domestic banking and securities industry. The notice of China Banking Regulatory Commission's general office on further standardizing the issues concerning personal financial management of commercial banks makes it clear that commercial banking products must not appear "expected return" or "maximum rate of return" in promotional and introductory materials. China Securities Regulatory Commission No. No. 265 2001 "on the regulation of securities companies entrusted investment management business Notice" also expressly stated: "The Trustee (the Securities Company) shall not be to the client (investors) promised to gain or share the loss." Because of this, all the domestic brokerage bank financial Planning also does not have the guarantee clause explicitly written into the contract. At a time when domestic banks and brokerages are firmly in compliance with State policies and regulations that have not promised investors the expected return, foreign banks, however, have played a "borderline" on the expected return on their wealth-management products, sending e-mails around to potential customers to sell their wealth-management products, a bit of unfair competition. These problems in the sales of foreign banks not only let customers suffer undue losses, but also lead to the decline of brand credibility of foreign banks in the eyes of domestic customers.　　CBRC Business Innovation Supervision and cooperation of the head of the department that the bad sales behavior, foreign banks need to be summed up and adjusted. At present, the domestic management of financial products is also a fuzzy zone, the specific financial products for the supervision of the relatively difficult. Xiaoling, the central bank's former deputy governor, has put forward several views on the regulation of financial products trans, and she believes that products of the same nature should be supervised by the same authorities. For example, the current financial products issued by various institutions can be regarded as publicly issued securities, and are regulated by the SFC. For example, asset securitization products that cause the US financial crisis should also be managed by the SFC. After the unification of a wide variety of financial products into a specific sector of regulation, foreign banks in China should also abide by local regulatory rules, through the legitimateWay of competition, otherwise it will hinder its overseas market expansion and development, so that consumers, customers look suspicious, the end result is the loss of customer trust. As a matter of fact, the illegal activities of Citibank in expanding the market of financial products abroad are not only in China, but also in Japan. In a statement issued June 26, the FSA said regulators found "significant problems" in the internal regulatory system for suspicious transactions such as money-laundering, and opened hundreds of accounts for anti-social groups such as violent gangs. To this end, the Japanese financial department decided to impose penalties on Citigroup. According to the punishment decision, Citibank cannot carry out new personal business through advertisement, propaganda, invitation and so on in one months from July 15, but does not restrict the customer to voluntarily request to purchase the bank financial product, this is the bank the second time in recent years by the Japanese regulatory body punishment. We can follow the example of the Japanese financial regulatory authorities to penalize the foreign banks for damaging the interests of Chinese clients.