Home » Insurance capital related transactions are subject to strong supervision. Insurance institutions must not have these behaviors in the use of funds._Sina Finance_Sina.com

Insurance capital related transactions are subject to strong supervision. Insurance institutions must not have these behaviors in the use of funds._Sina Finance_Sina.com

by admin
Insurance capital related transactions are subject to strong supervision. Insurance institutions must not have these behaviors in the use of funds._Sina Finance_Sina.com


  Original title: Insurance related transactions are subject to strong supervision!Insurance institutions shall not engage in these acts in the operation of funds

  reporter | Lu Wenqi

On June 2, in order to regulate related-party transactions in the use of insurance funds and prevent investment risks, the China Banking and Insurance Regulatory Commission issued the “Notice on Strengthening the Supervision of Related-party Transactions in the Use of Funds by Insurance Institutions” (hereinafter referred to as the “Notice”).

The “Notice” generally requires that the major shareholders or actual controllers, insiders and other related parties of insurance institutions embezzle, embezzle, and obtain insurance funds through related transactions, transfer benefits, transfer property, evade supervision, hide risks, etc., and adhere to zero tolerance. , heavy penalties, and strict supervision, resolutely curb the use of funds in illegal affiliated transactions, and promote the high-quality development of the insurance industry.

The “Notice” clarifies that insurance institutions shall not conduct the following acts when conducting fund utilization business:

By concealing or covering up affiliated relationships, entrusted equity holdings, asset holdings, drawer agreements, yin-yang contracts, split transactions, mutual investment in major shareholders and other concealed ways to evade related party transaction review or regulatory requirements. Through real estate projects, non-insurance subsidiaries, third-party bridge companies, trust plans, investment in asset management products, bank deposits, inter-bank lending, or other channels or nested methods to break through regulatory restrictions in disguise, and violate regulations for related parties or related parties designated parties financing. Through various means to lengthen the financing chain, obscure the essence of business, hide the final flow of funds, illegal financing, transfer of assets, idling arbitrage, hidden risks, etc. for related parties or designated parties of related parties. Other related transactions in violation of laws and regulations.

See also  “Feel like an accident”: Investor Philipp Klöckner on starting his career

The “Notice” encourages, guides and urges insurance institutions to carry out self-examination and self-correction of the compliance management of connected transactions in the use of funds in accordance with the principle of substance over form and penetration, especially focusing on monitoring and inspection of the following issues:

Insurance institutions invested and established by financial control platforms or invisible financial control platforms with capital operation as the main business; insurance institutions established by industrial capital investment with high leverage ratio, tight capital flow and aggressive expansion; insurance institutions with highly concentrated equity and irregular operation ;Insurance institutions with high proportion of high-risk bank deposits, high concentration of alternative investments, large amount of related-party transactions, high proportion of related-party transactions in the use of funds, or abnormal disclosure of related-party transaction information; Pay attention to bank deposits, unlisted enterprise equity, private equity investment funds , trust plans and other business fields, through the identification of the behavior of illegal provision of financing, pledge guarantee, transfer of benefits, and asset transfer to related parties or designated parties of related parties; risk assets have not been depreciated for a long time, and they have not been disposed of and reported for a long time. The act of covering up asset risks and delaying risk exposure by means of sequels.

At the beginning of this year, the China Banking and Insurance Regulatory Commission issued the “Notice on Carrying out Special Inspection on the Use of Insurance Funds for Related Party Transactions”. In the special inspection, the China Banking and Insurance Regulatory Commission focused on investigating and dealing with related party transactions such as illegally illegally extracting funds to transfer benefits, insider control and major shareholders’ manipulation of hollowing out institutions, as well as major shareholders’ illegal pledges, equity nesting, equity holdings and other equity issues.

See also  Piazza Affari at its highest level for 17 years: the super-rich choose Italy

This “Notice” further clarifies the focus of supervision, enriches the means of supervision, encourages self-examination by institutions and social reporting, and requires increased punishment and the formation of a joint supervision force.

Massive information, accurate interpretation, all in Sina Finance APP

Responsible editor: Song Yuanjun

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy