Nearly 3000 People With No Project Experience Have Taken Up Their Posts

Within half a year, 1832 "freshmen" sponsor representatives poured into the lake.

On December 11, according to the classification mechanism for the list of recommendation representatives established by the Securities Association of China (hereinafter referred to as the "recommendation business rules"), the China Securities Association announced "classified list of sponsor representatives a (comprehensive practice information)", "classified List B (institutional verification)" and "classified list C (classification of punishment Division)" of "recommendation representatives".

According to the classified list a of sponsor representatives, up to now, there are 5901 sponsor representatives in China. However, in June this year, when China Securities Regulatory Commission (CSRC) issued the revised "administrative measures for recommendation business of securities issuance and listing" (hereinafter referred to as "sponsor management measures"), the number of insurance agents nationwide was only 4069, and 1832 new insurance agents were added in half a year, with a rapid growth rate.

(the sponsor representative) is far more than the demand in terms of qualification. The issuer needs to pay attention to the registration time and project experience of the insurance agent. In the future, the business card of the insurance agent will be marked with the year of registration, which is not worth money if the year is not enough. " Wang Jiyue, a senior investment banker, laughs.

Baodai lake changes in the new year

"The rapid growth in the number of insurance agents this year is mainly due to the cancellation of the requirement of" Project Co organizer experience "by the CSRC In the interview, a person in charge of investment banking business of small and medium-sized securities companies in China said.

On June 12, this year, the China Securities Regulatory Commission (CSRC) issued the revised administrative measures on the recommendation business of securities issuance and listing, which adjusted the qualification management of sponsor representatives, cancelled the pre personnel qualification access of sponsor representatives, and no longer required the applicants for the qualification of insurance agents to "serve as Project Co sponsors in domestic securities issuance projects in the past three years".

"According to the regulations, the sponsor of the project, including the Project Co organizers, should sign the recommendation letter. In the past, it was hard to find a word for the" quasi guarantee agent. " The person in charge of the above investment banking business said that on the one hand, IPO projects sponsored by small and medium-sized securities companies were rare, and on the other hand, the projects were not necessarily co sponsored by the quasi insurance agent. "In the past, if the issuer had declared for many years, but it was still rejected, the insurance agent who signed it could only recognize bad luck."

It is worth mentioning that as early as the beginning of this year, the supervision released the signal of threshold release for the "Project Co organizer" of Baodai.

Since February, some local securities regulatory bureaus have said that they have served as Project Co organizers in the public offering projects of companies listed on the new third board in the past three years, and those who meet the qualification requirements of sponsor representatives can apply to the China Securities Association for registration as sponsor representatives.

"At that time, it also stimulated the investment banks of securities companies to do new third board projects, but in the end, it was not direct to cancel the" co sponsor "requirement." There are large-scale securities firms in Beijing investment banks said.

According to the statistics of Dongfang fortune choice and China Securities Association, at the beginning of 2020, there were 3806 people with the qualification of sponsor representative. By June 12, when China Securities Regulatory Commission revised the administrative measures for sponsor, there were 4069. As of December 14, the number of insurance agents increased by 1832 to 5901 in less than half a year.

Among them, the number of domestic insurance agents increased by 490 and 669 respectively in October and November alone. In contrast, in the whole year of 2019, the number of people in the country has only increased by 192.

It is worth mentioning that the previous "sponsor management measures" no longer requires the applicant for the qualification of insurance agent to "participate in the competency test of the sponsor representative recognized by the CSRC and pass the examination effectively". The rules of recommendation business is further detailed as follows: if the evaluation and test results of professional competence level fail to meet the basic requirements, the sponsor institution shall issue a written statement and provide sufficient materials to verify its professional competence level, and it shall complete 90 class hours of recommendation business related training within the latest six months.

The materials provided include any four of the following items, which can be regarded as sufficient: first, having more than eight years' relevant business experience of recommendation; second, having served as a member of the project team in two securities issuance projects in line with the provisions of Article 2 of the "sponsor measures" in the past three years; third, having a master's degree or above in finance, economics, accounting and law related majors; and fourth, obtaining a national legal position The fifth is to obtain the qualification of national certified public accountant.

"In fact, it's much more difficult to meet these conditions than to pass the Baodai examination," said a Beijing Investment Bank sponsor. Before the rules were clear, "I thought that I only needed a lawyer's qualification certificate and a certified public accountant's certificate. Now it's only eight years of working experience that has stopped most of the newcomers."

The above-mentioned large-scale securities investment banks in Beijing believe that the purpose of failing to pass the insurance agency examination is not to relax the access threshold, but to take care of the special circumstances of individual senior investment bank personnel.

Prominent Matthew effect in the industry

In any case, the number of domestic sponsor representatives has reached nearly 6000, showing a situation of oversupply.

In 2004, the domestic capital market began to implement the sponsor system, and the first batch of 609 sponsor representatives were also produced in that year. So far, the number of domestic generation has been expanded by nearly 10 times. According to the current regulations, IPO, refinancing and other sponsor businesses need to be signed by two sponsor representatives before they are qualified to submit issuance application documents to the CSRC. Such a key position, combined with high income and high access threshold, once made Baodai a "gold collar" in the financial industry.

"Now that the" gold collar "is gone, some people will lose their jobs." There is a small and medium-sized securities firm investment bank business personnel in the western region said that there is no project experience in the future, there is no shortage of insurance agent without contracting ability.

According to the data released by the Securities Industry Association, 2991 of the 5901 insurance agents have never participated in the sponsor project. In Wang Jiyue's view, the sponsor representative is equivalent to a kind of "professional qualification", symbolizing the practice on behalf of the sponsor. "Baodai is no longer scarce. In addition to those who have just registered this year, more than half of the previous ones have not signed any projects."

However, corresponding to the large scale of "zero experience" Baodai, there are still very few Baodai with rich recommendation experience. According to the data, there are only 133 people in the whole industry who sponsor more than 10 projects, and only 705 people sponsor 5-10 projects.

From this point of view, the insurance agent also presents Matthew effect. The investment bank business personnel in the western region said, "there are still lack of powerful insurance agents, and the signature insurance agents of the company can still receive the insurance agent allowance."

Like Baodai, the Matthew effect of the sponsor is also very prominent. As of December, there were 125 brokerage companies in China, including choice. Among them, there are more than 200 securities agents of SINOSURE, with more than 3 agents. China Construction Investment and Haitong Securities have 346 and 271 respectively, ranking second and third in the industry. After that, there are six securities companies, namely, CICC, Huatai United Securities, Minsheng securities, Guoxin Securities, Guotai Junan and Guojin securities.

Cheng Ling, a non bank financial analyst at CDB securities, said that according to statistics, the IPO project reserve of securities companies with a large number of insurance agents also ranks in the forefront of the industry. In the new regulations, market experience and business experience are inclined in the identification of insurance agency. Securities companies with abundant project reserves have more advantages in attracting talents, and the Matthew effect of the industry may be further strengthened.