1, financial management on behalf of customers means that professional financial institutions or individuals provide financial services to customers and collect fees. Remuneration includes: basic fee+profit commission, and some don't charge basic fee (also called management fee, which is generally charged annually, with the expense rate ranging from 1%-5%) or only charge management fee without profit commission. The profit commission here refers to the commission charged by the trustee according to a certain proportion, such as 30%.

2. The object of financial management on behalf of customers

Financial management objects are classified by currency, including RMB assets and foreign currency assets; According to the investment direction, it can be divided into bank deposits, insurance, securities, futures, gold and foreign exchange margin trading. According to the qualification of financial managers, it can be divided into banks, private equity funds, individuals with securities/insurance/futures qualifications, fund management companies and so on.

According to the different legal relationship between banks and investors

1. Fixed income wealth management products. Commercial banks promise investors to pay fixed income according to the agreed conditions, and banks bear the investment risks arising therefrom.

2. Non-guaranteed floating income wealth management products. Commercial banks pay investors income according to the agreed conditions and the actual investment income of wealth management business, and do not guarantee the safety of investors' principal.

3. Capital preservation floating income wealth management products. Commercial banks assure investors that the risks other than the principal payment are borne by the investors according to the agreed conditions, and determine the financial plan of the investors' actual income according to the actual income.

4. Financial products underwritten by commercial banks. Commercial banks only charge fixed underwriting fees for products sold by other agencies, and are not responsible for the risks of products.

Matters needing attention

Note 1: At present, many institutions or individuals operating under the banner of "financing on behalf of customers" are not qualified for financing on behalf of customers. Before deciding to hand over the funds to the other party, it is best to confirm the qualifications of the other party, such as the company's business license, the company's or individual's qualification certificate for securities/insurance/futures or the certificate of passing the college examination.

Note 2 According to the law, securities companies (such as orient securities) and consulting companies (such as Yibang Investment) can't agree on a share with customers and can't promise to guarantee income. Therefore, if this happens, it can be concluded that it is a fraudulent company or the company's illegal operation can complain to the local regulatory authorities.

Note 3. Keep in mind the principle that "the stock/futures/foreign exchange market must be cautious and risky". In addition to the guaranteed financial products of banks and insurance companies, risks in financial markets are everywhere. Before identifying financial institutions such as private equity funds or individuals with professional qualifications, we must communicate with them in detail and make a decision after fully understanding their investment direction, investment style and possible income/risk ratio.

Note 4: There are a large number of financial institutions or individuals on behalf of customers in the market, some of which are truly reliable, and some of them use this method for illegal operation and fraud. Please keep your eyes open. Don't be tempted by the sensitive word "inside information about how many short-term profits there are in the daily limit".