Home » China Banking and Insurance Regulatory Commission: Strengthen the supervision of related party transactions in the use of funds by insurance institutions to prevent investment risks

China Banking and Insurance Regulatory Commission: Strengthen the supervision of related party transactions in the use of funds by insurance institutions to prevent investment risks

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The reporter learned from the China Banking and Insurance Regulatory Commission today (2nd) that in order to further strengthen the supervision of related-party transactions in the use of funds by insurance institutions, regulate the use of related-party transactions in insurance funds, and prevent investment risks, the China Banking and Insurance Regulatory Commission issued the “On Strengthening the Supervision of Related-party Transactions in the Use of Funds by Insurance Institutions”. Work Notice” (hereinafter referred to as the “Notice”), to vigorously rectify the major shareholders or actual controllers of insurance institutions, insiders and other related parties through related transactions to misappropriate, embezzle, and obtain insurance funds, transfer benefits, transfer property, evade supervision, and concealment. Risks, etc., adhere to zero tolerance, heavy punishment, and strict supervision, and resolutely curb the use of funds in illegal affiliated transactions.

According to the “Notice”, insurance institutions are required to adhere to the leadership of party building when conducting related-party transactions in the use of funds, clarify the basic principles, division of responsibilities and prohibited behaviors for related-party transactions in the use of insurance funds, and require institutions to strengthen the management of related parties, cooperative institutions, approval decision-making, and information disclosure , establish an accountability and reporting mechanism for the use of funds related to related transactions. Institutions are encouraged to conduct self-examination and social reporting, and require greater punishment to form a synergy of supervision. Industry self-regulatory organizations are required to strengthen self-discipline management, create a compliance culture, and fully communicate and coordinate.

The specific contents include: related parties of insurance institutions shall not interfere or manipulate the use of funds, and it is strictly prohibited to use insurance funds to conduct related transactions in violation of laws and regulations.

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Insurance institutions shall, in accordance with the relevant regulatory provisions of the China Banking and Insurance Regulatory Commission, truthfully, accurately, complete, standardized, timely, and one-by-one, publish announcements on the disclosure of information on connected transactions of capital use on the company’s website and the website of the Insurance Association of China, without any false records, misleading statements or information disclosure. Major omission.

When an insurance institution conducts fund utilization business, it shall not conduct the following acts:

1. By concealing or covering up affiliated relationships, entrusted equity holdings, entrusted asset holdings, drawer agreements, yin-yang contracts, split transactions, mutual investment of major shareholders and other concealed methods to evade the review of affiliated transactions or regulatory requirements.

2. Break through regulatory restrictions in disguised form through real estate projects, non-insurance subsidiaries, third-party bridge companies, trust plans, investment in asset management products, bank deposits, interbank lending, or other channels or nesting methods, and designate for related parties or related parties illegal financing.

3. Lengthen the financing chain in various ways, obscure the essence of business, hide the final flow of funds, illegally finance related parties or designated parties of related parties, transfer assets, idle arbitrage, hide risks, etc.

The “Notice” also encourages shareholders, directors, supervisors, employees and other stakeholders of insurance institutions and the general public to report to the regulatory authorities the use of funds in violation of laws and regulations related to related transactions, and actively report the parties involved in related transactions and cooperate with investigation and punishment. The “Administrative Punishment Law of the People’s Republic of China” may give a lighter or reduced liability depending on the circumstances.

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The relevant person in charge of the China Banking and Insurance Regulatory Commission said that the issuance and implementation of the “Notice” is an important measure for the China Banking and Insurance Regulatory Commission to further improve the management of related-party transactions in the use of funds by insurance institutions. significance.

(Headquarters CCTV reporter Wang Shantao)

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