CCTV News:According to the website of China Banking and Insurance Regulatory Commission on the 5th, in order to further deepen the structural reform of the financial supply side, strengthen the supervision of insurance asset management companies, and promote the high-quality development of the insurance asset management industry, China Banking and Insurance Regulatory Commission revised the Interim Provisions on the Management of Insurance Asset Management Companies (Order No.2 [2004] of the China Insurance Regulatory Commission) and solicited opinions and suggestions from relevant parties and the public, thus forming the Regulations on the Management of Insurance Asset Management Companies (hereinafter referred to as the Regulations), which is now officially released.
There are 7 chapters and 85 articles in the Regulations, the main contents of which are as follows: First, a special chapter on corporate governance is added. Combined with the supervision practice in recent years, the requirements are clarified from the aspects of overall requirements, shareholders’ obligations, incentive and restraint mechanism, the operation of shareholders’ meeting and board of directors and supervisors, the establishment of professional committees, the system of independent directors, the chief risk management executive and the part-time job of senior management, etc., so as to enhance the independence of insurance asset management companies and comprehensively strengthen the institutional constraints of corporate governance supervision. Second, take risk management as a special chapter, and comprehensively supplement it from the aspects of risk management system, risk management requirements, internal control audit, subsidiary risk management, related party transaction management, employee management, risk reserve, emergency management, etc., and strive to enhance the risk management ability of insurance asset management companies and effectively safeguard the safety of long-term funds such as insurance funds. The third is to optimize the design of equity structure. Implement the decision-making and deployment of the State Council Financial Committee to expand opening to the outside world, treat the shareholders of insurance asset management companies at home and abroad equally, and cancel the upper limit of foreign shareholding ratio. In addition, the conditions for all types of shareholders are clearly defined and set, and the management of shareholders of non-financial enterprises is strict. The fourth is to optimize the operating principles and related requirements. Refine the business scope of insurance asset management companies, increase the basic principles of entrusted management of various funds, clearly require the establishment of custody mechanism, improve asset independence and prohibit debt offset, prohibit channel business, and make provisions on sales management and prudent operation. The fifth is to supplement regulatory means and violations. Added the contents of hierarchical supervision, information disclosure, major event report, etc.It has enriched the methods and measures of supervision and inspection, and increased the contents of illegal file records, professional institutions’ illegal responsibilities, financial status monitoring and self-discipline management.
The Regulation is an important measure to implement the spirit of the CPC Central Committee the State Council on deepening the structural reform of the financial supply side and expanding the decision-making arrangements for opening to the outside world. It has comprehensively considered the existing problems in the current development of insurance asset management companies and the development direction in the future, formed a relatively complete institutional supervision system framework with more distinctive features, and provided space for the market-oriented operation and differentiated development of insurance asset management companies. It is conducive to guiding and promoting the standardized operation and high-quality development of insurance asset management companies, better meeting the needs of maintaining and increasing the value of long-term funds such as insurance funds, and cultivating more stable institutional investors for the stable and healthy operation of the capital market and the high-quality development of the real economy.
Attachment: Provisions on the Administration of Insurance Asset Management Companies