Viewpoint | Letter to Investors: "Zhongzhi" Relief Path for Default Payment of Fixed Finance Products
Published:
2023-11-06
The editor takes Hengtian Wealth's sale of a fixed-finance product as an example, and makes a preliminary analysis of the relief path of investors after the default payment of such products, in order to help investors clarify the rights and responsibilities of all parties, alleviate anxiety and recover losses as soon as possible.
Foreword
In July 2023, the "mid-planting" wealth end sales of fixed-melting products have been overdue payment, opened the "mid-planting" fixed-melting products of the fig leaf. Letters and visits, complaints, reports, litigation, arbitration, the panic of high-net-worth investors, trying to explore a ray of hope under the fog.
The "Zhongzhi Department", that is, Zhongzhi Group, was founded in 1995 and its main business is "financial industry". The corporate finance sector of Zhongzhi Group includes six licensed financial institutions: Zhongrong Trust, Zhongrong Fund, Hengqin Life, Hengbang Property Insurance, Zhongrong Huixin Futures and Tianke Jiahao Pawnshop. The asset sector includes five asset management companies: Zhonghai Shengrong, Zhongzhi International, Zhongxin Rongchuang, Zhongzhi Capital and Shoutuo Rongsheng. The wealth sector includes Hengtian Wealth, Xinhu Wealth, Datang Wealth, Datang Wealth and Gaosheng Wealth.
In this article, the editor takes Hengtian Wealth's sale of a fixed-finance product as an example, and makes a preliminary analysis of the relief path of investors after the default payment of such products, in order to help investors clarify the rights and responsibilities of all parties, alleviate anxiety and recover losses as soon as possible.
Definition of 1. fixed melt products
Fixed financing products, embodied in the subscription agreement as "non-public offering financing plan", that is, the issuer to specific investors non-public directional fund-raising, is a non-standardized direct financing tool, there is no clear legal definition. As the "Zhongzhi" fixed financing products are not sold by financial institutions or financial institutions, such products are not directly applicable to the relevant provisions of the New Regulations on Capital Management and the Minutes of the Ninth People's Meeting on capital management products.
Transaction structure of 2. fixed-finance products
1. The issuer, generally a subsidiary of the asset side or asset side of the Zhongzhi Group, that is, the user of the financing, the Subscription Agreement stipulates that the issuer is obliged to repay the principal of the investment and the expected return payable after the maturity of the financing plan.
2. Investors, qualified investors with certain risk tolerance, the Subscription Agreement stipulates that the threshold for institutional investors is that the net assets at the end of the last year are not less than 10 million yuan, and for natural person investors, the personal financial assets are not less than 3 million yuan or the average annual personal income in the last three years is not less than 500000 yuan.
3, the trustee, generally is the asset management company of Zhongzhi Group, the Subscription Agreement stipulates that the trustee has the obligation to promote products, post-investment management and so on. However, it is understood that the trustees of such products generally do not have direct contact with investors, nor do they exercise corresponding management functions, and investors can only communicate with other relevant parties through the financial advisers of wealth companies.
4. Fortune Company, which is not the subject of the Subscription Agreement, acts as an underwriter of wealth management products in the early stage, and investors can purchase wealth management products directly on its public number, such as "Hengtianhui", and further gain the trust of investors through the credit blessing of Fortune Company.
5. The registration and filing institution shall be a local financial asset exchange with filing qualifications, that is, the "Gold Exchange". However, it is understood that some of the relevant qualifications of the Gold Exchange for filing of Zhongzhi products have been revoked or there is no relevant qualification, which belongs to the "pseudo-gold exchange".
6. The balance making obligor is not the subject of the Subscription Agreement, but is directed in the "liability for breach of contract" clause. At the same time, the balance making obligor issues a "balance making commitment letter" to the manager or holder of such products, promising to assume the obligation to repay the unpaid principal and/or expected income. Investors may request a "Letter of Commitment to Deficit the Difference" from the financial advisor of the corresponding product for subsequent use of their rights.
The Relief Path of 3. Fixed Finance Products
1. Collection of evidence
As the saying goes, "if a worker wants to do a good job, he must first sharper his tools". No matter what kind of relief path investors choose, the first thing they should do is to collect and fix evidence. It is suggested that investors should sort out the subscription agreement, the commitment letter of difference replenishment, the confirmation letter of investor share, the entrusted management agreement and the product promotion materials of the purchased financial products through the financial consultant, keep the chat record with the financial consultant, and keep in touch with them at the same time, so as to know the latest news of Zhongzhi group.
At the same time, the investor may send a written letter to the issuer, the administrator and the deficiency payment obligor requesting the fulfillment of the payment obligation, the management obligation and the deficiency payment obligation, and the corresponding evidence of the investor's claim after the default of the fixed product, so as to be used in the subsequent judicial protection channels.
2, to the Financial Supervision Bureau to report complaints.
It is understood that some of the fixed-financing products issued by "Zhongzhi Department" have capital pools, self-financing, failure to use funds in accordance with the agreed purpose, and failure to legally register and file, etc. Investors can report to the financial supervision bureau where the issuer is located., It is required to verify whether the behavior of such products in the process of fundraising, investment, management and withdrawal is legal, and whether there are violations of regulations and laws, in order to understand the real situation of the project, at the same time fixed liability related evidence.
3. The initiation of arbitration/litigation
In accordance with the Subscription Agreement, the dispute resolution jurisdiction for such products is the Beijing Arbitration Commission. Therefore, investors can file arbitration with the Beijing Arbitration Commission after the purchase of fixed-term products defaults. However, the editor understands that at present, the Beijing Arbitration Commission has normally accepted the cases of the Zhongzhi Department, but there is no clear hearing time. The reason for the inquiry is generally that the service cannot be delivered, and there are no Zhongzhi cases that have entered the enforcement procedure.
Therefore, investors can choose to wait and see appropriately, and then initiate arbitration after learning that a case is determined to be in court. On the one hand, it can save litigation costs, and on the other hand, it can avoid the anxiety and helplessness of waiting for the procedure.
For the subject of the respondent, the primary responsible person is the issuer, and if the administrator has dereliction of duty, it may claim its obligation to compensate. Since the shortfall obligor is not the subject of the Subscription Agreement and is not subject to the arbitration jurisdiction agreed upon in the Agreement, a separate lawsuit is required to claim the relevant rights.
Feasibility Analysis of 4. Arbitration/Litigation Approach
1. An analysis of whether the "Zhongzhi system" will enter into reorganization proceedings and whether arbitration/litigation is useful.
The editor learned that many investors inferred that the "Zhongzhi Department" would resolve the debt crisis through the bankruptcy reorganization procedure because of the audit company's entry into the audit, the negotiation of the trust company, and the inadmissibility of the lawsuit conveyed by the staff of the "Zhongzhi Department". Therefore, they believed that everyone would distribute according to a unified proportion in the bankruptcy reorganization procedure, or pay according to a unified proportion before the procedure, and chose to give up the litigation/arbitration.
The editor believes that before the "Zhongzhi Department" has not officially confirmed the acceptance of bankruptcy applications or centralized jurisdiction, it is inevitable and of course to protect rights through arbitration/litigation procedures. Although no hearing time has been arranged for the cases that have applied for arbitration at present, the judicial process will not make concessions to the cases of individual subjects and obtain effective legal documents confirming the rights, which is the basis for investors to strive for the next step in the implementation of the payment, and is also a bargaining chip that can one day negotiate with the other party for payment.
2, about arbitration/litigation enforcement is not property.
The editor found that in the promotion materials of financial products, there are often hidden property clues of the product, and the editor has investigated some property clues based on the materials provided by some customers. Therefore, investors are reminded that they can collect property clues on their own and provide them to the court at the stage of property preservation or case execution for later execution.
Conclusion(For investors in anxiety)
The Central Financial Work Conference held on October 30 this year focused on "comprehensively strengthening financial supervision and preventing and defusing risks". Although financial risks are dangerous, we must believe in the unified leadership and decision-making of the central government, maintain a peaceful mind, and be rational. Rights protection!
After three years of the epidemic, in the state of magic chaos, we still have to step firmly, believe that we will become their own unarmored heroes, overcome difficulties, and finally see the dawn of victory!
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