Securities broker system for innovative thinking

Abstract: Securities broker system is a mature stock market trading system a very important face of the current global stock market prospects, we should be the mature agent system as a model for the characteristics of China's securities market agent for the system mode analysis of domestic securities broker system in the actual operation of the existing problems and propose appropriate solutions strategy, in order to improve the market competitiveness of our brokerage.

Keywords: securities broker system, the system model, innovation

April 13, 2009 <<Interim Provisions securities broker>> into effect, which requires securities brokers to obtain a certificate before practice securities broker, marking China's securities brokerage industry, was officially formed. Commission on the securities brokerage person is defined as: to accept the company's securities commission, agents engage in client solicitation and customer service activities such as securities companies outside the natural person to establish and regulate and develop securities broker as soon as the system is conducive to China's securities market development, and to the majority of small and medium investors to mature as quickly as possible.

First, the major domestic and international securities broker system model

U.S. stock market is relatively better in the global market since the introduction of liberalization of brokerage commission, the U.S. securities dealer business model to differentiate into three types: FC-based Merrill Lynch broker system model, Edward Jones, the IR model and virtual platform model.

FC mode, FC is based on research and consulting support departments and TGA (Trusted Global Advisor information platform, the main responsibility is marketing. The model has two main characteristics: First, a strong research-based consulting platform, the second is not literally FC financial advisors, but marketing with a strong color (a new company into the FC must be completed within two years $ 18 million in customer assets under management and 24 financial plan before they can become the official FC.

Edward Jones investment representative IR (Investment Representative model, the recruitment of a IR, a means to determine the success of the outlets close to the recruitment process is actually equivalent to the process of determining a potential market in the latter part of the training IR, IR must identified 250 potential customers and actual "knock" visit one of the 125.

Virtual platform model is designed for off-site transactions, such as E-TRADE, Charles Schwab online brokerage company uses the model The model's main use of resources, maximize its effectiveness, but too much blind faith in modern technology, the core can not be established competitiveness.

Examine the development of domestic securities broker, securities broker system mainly solid pyramid, completely plug-in type, operation type galaxies, full market-based, virtual platform model.

The robustness of the pyramid model, securities firms borrowed an insurance agent system, set up a pyramid marketing structure, such as the Ping An Securities, marketing management, etc. In this mode, the securities broker for the regular employees of securities companies, with a strong sense of belonging identity and corporate culture, but psychological dependence is more serious, long-established work habits and passive inertia of thinking will affect the marketing performance.

Completely plug-type model is a relatively new mode of operation, with reference to business outsourcing, encourage the establishment of studios, such as Friends of the rich client securities contracting system. Business department and securities brokers are partners in the form of coexistence, such models full play the initiative of the securities broker, but the sales department needs to strengthen risk control, more suitable for small securities firms.

For the large securities companies, operating-type model is more applicable to the galaxy, such as GF Securities, etc. In some administrative areas, that city there is 5-6 business department, the establishment of regional sales and service center, unified scheduling, the implementation of optimal allocation of resources, thus creating the greatest value, but this mode subject to administrative and human factors disturbances.

The so-called full market-based, that is, the sales department is divided into foreground and background, the main job is to sell the foreground, the background work is to provide related services, such as the OIT model Xiangcai Securities (O-OUT: out of the counter, I-IN : into the investors, T-TO: to society. This pattern is very clear before and after the duty station, but the pattern in the background can provide adequate services to be tested at the same time, front and clearly distinguished from that field staff will lead to inferior Locally, several brokerage business department (Shaoxing they use this model.

Second, the securities broker system is the main problem

(A securities company on the loose management of securities brokers

1. Labor relations is not clear

Currently, the domestic securities brokers and securities companies signed an agreement there are two forms, one is signed labor contracts and securities companies, securities companies belonging to the official staff. The other is signed and the securities commission agency contract, to accept securities companies commission, agents engaged in client solicitation and customer service activities.

The first form of stability, strong, not because of fluctuations in performance and frequent job-hopping, but this form of small proportion of the securities broker, often in-house staff positions in the original transformed, mainly working for the development of customer sometimes part-time customer finance consultant to carry out certain investment advisory business, but does not represent clients to operate as full-time staff, securities brokers in addition to basic wage income, but also according to the management of customer transactions to extract a certain percentage of commission.

The second is and securities firms are principal-agent relationship, a large proportion. It emphasizes both the employment relationship established between the only two legal relationships between subjects, do not pay a fixed wage, or pay a basic salary, only to extract customer transactions according to the commission as remuneration is not fixed, which makes the securities brokerage no place in the company feel, and no sense of belonging, resulting in a securities broker mobility results. customers securities broker flow results in huge loss to the business department of the brokerage business has brought a huge risk.

Whether securities brokers and securities on behalf of employees engaged in securities business, securities companies are actually very difficult to control if the stock market downturn, competition, securities brokers to get clients, they played the commission price war, leading to a broker on the market vicious competition with each other, or even illegal or unauthorized agents to guide customers to the customer trading, while the majority of investors are often out of the trust securities companies have relaxed their vigilance to identify securities broker, and even some investors simply will Stockbrokers people equate with securities companies, so, once the customer disputes with securities brokers, almost all customers are required to investigate the responsibility of securities companies.

(2) lack of training for the securities broker

Greater than the need for the securities broker, but was unable to meet the needs of high-quality brokers. To local brokers, for example, most companies are currently recruiting for most of the requirements of securities brokers in the "customer pull" the traditional concept of being, while ignoring the for customer service this critical issue. Although many securities companies have strong research institutions (such as Guotai Junan Securities Research Institute, but most brokers run around all day on the development of the customer being unable to report to those professional study.

Brokerage in the training of the main problems are: marketing training to work on more work in less expertise from top to bottom, to focus only on the initial pre-service training (in their qualifying examination by the securities broker for the purpose, and in the continuing work professional learning very little.

This leads to the professional quality of the securities broker is generally not high, and some other business to get clients to the ministry, "persists in the form", and even verbal abuse, slander other business departments. The lack of securities brokers and securities-related expertise, statements of listed companies, stock technical analysis knowledge and know little about, and some of the brokerage business are not very familiar with the basic operations, activities, goal is to compete for customers or for brokerage commissions, securities investment consulting greatly reduced the level of service.

(Two existing securities broker model is not conducive to the development of the securities industry

In the course of the local brokerage research found that many securities companies are still in the traditional extensive management mode, simply by the securities broker commission into the way of marketing to attract customers, not conducive to the improvement of the competitiveness of the company itself, is not conducive to the industry development.

First, the securities broker's customers to maintain the securities commissions as securities broker employment relationship with the link. The securities broker for personal interests, vigorously promote or valet buy stocks, valet or frequent customer orders or to encourage more short run, in order to increase commission income. Some brokers represent clients in more cases, with the financial strength to manipulate the market, instability in the market, while these phenomena in the more mature stock markets, is expressly prohibited by because the market is not conducive to a healthy and stable development.

Second, securities brokers to bring clients often including some relatives, friends, etc. Based on these special relationships, management of securities companies prone to relax or omissions, do not have the legal procedures in the next, allowing the client securities account securities and brokerage operations capital account, may occur when a serious diversion and misappropriation of clients' funds crime.

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(C lack of scientific and reasonable incentive and restraint mechanisms

Today in the securities broker system is widely used in "basic salary + commission" pay model because of brokerage paid to agent compensation is based on the size of customer transactions, but with my basic quality and service quality does not matter, which makes blind broker the pursuit of customer trading volume, but not very good considering the quality of service, while the quality of customer trading volume and price have a great relationship, so that the revenue agent has a direct relationship with the market is good or bad. To some extent, the broker has a strong short-term behavior. Brokerages lack of its long-term incentives, the importance of personal motivation, lack of motivation and personal motivation of the team combined, can not form a team effect, emphasis on marketing performance, ignoring the work of assessment , resulting in unbalanced workload and motivation, so that securities firms in the lack of sustainability of large customers.

In addition, the broker of the securities company's business scope is not responsible for such provisions, which makes the agent, there are many operational irregularities. Some brokers, driven by self-interest, in order to create more customer transactions, at the contrary professional ethics, the transmission of false information, serious damage to the interests of investors. brokerages difficult to fundamentally control the agent's opportunistic behavior, more prone to moral hazard.

Third, the idea of ​​innovation systems

(A broker management system established

1 to establish a scientific training system

U.S. Merrill Lynch has the world's leading high-quality brokerage professionals, this training system with the formation of an integral order to maintain the vitality of the ranks, an annual intake of a considerable number of new training, training for three years, given a fixed training period wages, but the very high attrition rate during the first year, usually out of 75% within three years the development of client assets reached $ 30 million in order to achieve financial adviser qualifications. get qualified financial advisor must be subject to the annual at least twice, every 3-5 days of training. Merrill Lynch financial advisor training while establishing a set of strict examination system to examine the content in addition to operating income, the amount of growth in client assets, there is customer feedback and practice discipline indicators together, innovation and strict management of the U.S. brokerage market, the secret of eternity.

Similarly, the financial advisor business model in China with a broad space for development, we can learn from the experience from abroad, to pay a long and arduous and painstaking efforts to achieve the brokerage business of its own transformation, coupled with the company a set of management system and relevant regulatory authorities laws and regulations of the cooperation and support.

(2) to establish business rating system

To improve the level of the business of securities brokers, securities brokers should be based on the business division in grade securities broker for example, with reference to the level of securities brokerage business, its rated as high, intermediate, and three grades of primary securities dealers The High prestige highest, the highest level of business, ethics is best. to obtain the class of securities broker may engage in all of the securities brokerage business, including the agency, investment advisory and investment management, investment advisory intermediate may engage in business with the agency, the primary Securities brokers are only engaged in the agency business at the same time, the regular and irregular aspects of the securities broker rigorous assessment of its securities brokerage business grade status at any time according to movements.

3. The establishment of system of pay system

Promote specialization in the same time, pay brokers to promote reform of the system. The only commission to implement the existing commission system reform, the implementation of functional separation and graded according to the salary system. Broker's salary charged to customers mainly from the service fees or annual fees, management consultant salary funds mainly from commissions and performance royalty in order to stabilize brokers and agents to attract outstanding talent, but in the development of the securities broker compensation management should be accompanied by the relevant national and sectoral coordination, development of relevant financial regulations and tax processing requirements.

(B to establish a risk management fund system

Risk compensation fund established securities broker, securities broker for individual investors because of errors in the work pose a risk to the risk of loss compensation to the fund comes mainly from personal income securities broker's commission, or a monthly from the individual securities broker to extract a certain percentage of commission income into their personal risk funds, securities brokers, as the risk of personal funds, so as to gradually establish and improve our risk management of individual securities brokers fund system which is conducive to the risks and prevention, and it helps Securities in brokering activities to improve their credibility.

(C supporting the establishment of industry regulatory system

Can refer to international management and supervision system in China's securities market within the framework of establishing the Commission, the Securities Association of Securities Dealers Association or the local securities companies and the combination of three levels of regulation.

By the China Securities Regulatory Commission has overall responsibility for planning securities broker system, and supervision of the securities broker's implementation of various laws and regulations, securities brokers to investigate evidence of illegal behavior and punishment.

Securities Industry Association to help securities regulators enforce the education and organization member securities broker laws and regulations, supervision and inspection of member-owned securities broker behavior, and a member of the illegal action, to accept investor complaints for the securities broker and mediate their disputes.

Securities in accordance with relevant laws and regulations to develop the internal management system of securities brokers, securities brokers into the internal management of securities companies. Securities company hired to create the file securities brokers, securities brokers and objective detailed record of working in the company's market performance, job performance, customer evaluation, and rewards and punishments and so on.

Securities broker system model in developed countries played a key role in the stock market, although domestic securities broker system is still in perfect stage, but we believe that in the future of China, stock market brokers will become the mainstream of the securities market, securities brokers will play a more active, more critical role.

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