□《BankinsuranceMeasures for the Administration of Related Party Transactions of Institutions” respectively set proportional limits for high-risk related party transactions related to funds, and lowered them.insuranceThe upper limit of the proportion of capital utilization; strengthen the management of off-balance sheet business and asset management business;BankInclude related parties
□ For the first time, the China Banking and Insurance Regulatory Commission has launched a special inspection on related-party transactions in the use of insurance funds
The reporter learned on January 14 that the China Banking and Insurance Regulatory Commission drafted theBankinsuranceMeasures for the Administration of Related Party Transactions of Institutions (hereinafter referred to as the “Measures”), further strengthen the supervision of related party transactions, regulate the related party transactions of banking and insurance institutions, and prevent the risk of benefit transmission. The measures will come into effect on March 1, and the China Banking and Insurance Regulatory Commission will issue an implementation notice in the near future to clarify the transition period arrangements.
The measures absorb and integrate the institutional advantages of the two aspects of the banking and insurance industries, not only unify the management rules for related party transactions, but also take into account the characteristics of different types of institutions, and strive to achieve differentiated supervision based on the consistency of supervision standards.In general, banking and insurance institutions should maintain the company’s operational independence, improve market competitiveness, control the number and scale of related party transactions, and focus on preventingshareholderand its related parties to carry out the risk of benefit transmission, and avoid complex arrangements such as multi-level nesting.
According to the relevant person in charge of the China Banking and Insurance Regulatory Commission, the differentiated supervision of the measures is mainly reflected in three aspects: First, the supervision is implemented according to the degree of institutional risk. The regulatory authorities may set or adjust the regulatory ratio of related party transactions applicable to bancassurance institutions according to the corporate governance status of the banking and insurance institutions, the risk status of related party transactions, and the characteristics of the institution type, etc., and under the premise of preventing risks, strengthen the pertinence and effectiveness of supervision. sex. The second is to strengthen the supervision of key areas. The measures set proportional limits for high-risk related-party transactions related to funds such as bank credit, insurance fund utilization, and trust fund investment. The upper limit of the proportion of insurance fund utilization has been lowered, and some indicators have dropped by as much as 40%, and strive to prevent the problem of providing financing to major shareholders. The third is to strengthen the management of off-balance sheet business and asset management business. Banking institutions’ investment in specific-purpose vehicles and other businesses that are essentially borne by the banking institution should be included in the credit supervision ratio to be regulated, so as to prevent evasion of supervision by designing complex transaction structures.
For violations such as transferring benefits to related parties and evading supervision through complex transaction structures or through channel business, the Measures set up prohibitive provisions, requiring institutions to optimize the identification of related parties and related transactions in accordance with the principles of substance over form and penetrating supervision, and strengthen Manage related-party transactions in key areas such as off-balance sheet, asset management, and inter-bank transactions.
The above-mentioned person in charge stated that in the identification and identification of related parties, the method adopts a combination of direct identification and identification of substance over form, reasonably defines the scope of related parties, and identifies related parties through layers. Drawing on the common practice at home and abroad, according to the importance and risk, the method adopts a direct identification method for key related parties, and the main shareholders penetrate upward to the controlling shareholder and actual controller, and downward to the legal person controlled by them, focusing on preventing shareholders Convey benefit risk. At the same time, the measures include subsidiaries as related parties to prevent the risk of transferring interests through subsidiaries; and also include related commercial banks as related parties to prevent major shareholders from stealing bank funds by implicitly holding shares in multiple banks. .
In terms of clarifying management responsibilities, the measures consolidate the main responsibility of institutions in the management of related-party transactions, establish a layer-by-layer accountability mechanism, strengthen the functions of the related-party transaction control committee, set up a cross-departmental related-party transaction management office at the management level, clarify the leading department, set up Special post to implement the identification of related parties and the daily management of related transactions.
In addition, regulatory measures are further enriched. The measures clarify that banking and insurance institutions with an E-level corporate governance regulatory assessment result are not allowed to carry out credit-granting, capital-utilizing, or capital-based connected transactions; measures such as industry notification and ordering of institutions to be held accountable can be taken against those who violate the regulations. The measures also specify the handling measures for violations of institutions and directors, supervisors, and senior management personnel.
In addition, the China Banking and Insurance Regulatory Commission recently issued the “Notice on Carrying out Special Inspections on the Use of Insurance Funds Related Party Transactions”, and decided to organize relevant banking and insurance regulatory bureaus nationwide to carry out special inspections on related party transactions in the use of insurance funds in 2022. This is the first time since the establishment of the China Banking and Insurance Regulatory Commission that special inspections have been made on related-party transactions in the use of insurance funds.
The special inspection is carried out nationwide in a coordinated manner, aiming to continuously release the momentum of reform, focus on consolidating the foundation of on-site inspection of non-banking institutions, find out outstanding problems, reveal hidden risks, seriously investigate and deal with violations of laws and regulations, and report to the market. The main body transmits regulatory pressure, forms a high-pressure situation against violations of laws and regulations, and resolutely curbs the spread of misconduct in the use of insurance funds in related-party transactions. On-site inspections shall be coordinated, organized and implemented by the Non-Banking Institution Inspection Bureau of the China Banking and Insurance Regulatory Commission.
The notice clarifies that the special inspection will focus on financial holdings or invisible financial holding platforms with capital operation as the main business, as well as small and medium-sized insurance institutions with diversified development and aggressive expansion of industrial capital as shareholders. The key contents include related party transaction system and mechanism, related party transaction information disclosure, related party transaction review, and fund utilization related party transaction behavior.
This on-site inspection is also the first large-scale special inspection after the reform of the responsibilities of the supervisory body of an insurance institution, which fully demonstrates that the CBIRC has implemented the spirit of the Central Economic Work Conference, strengthened the effective supervision of capital, strengthened the construction of financial supervisory cadres, and handled major financial risks. Determination to prevent work.
The notice emphasizes that all relevant bureaus of the China Banking and Insurance Regulatory Commission shall, according to the risk characteristics of the inspection objects, coordinate the allocation of regulatory resources, and select and deploy key personnel to form an on-site inspection team; it is necessary to increase the punishment, and deal with the violation of laws and regulations of bad nature, serious circumstances, and repeated investigations and violations. Transactions shall be severely punished in accordance with relevant laws and regulations, and the relevant personnel shall be seriously investigated for their responsibilities.
The notice requires that it is necessary to continuously strengthen the construction of on-site inspection teams and improve the ability of on-site inspection of the use of insurance funds by banking and insurance supervisors; attach great importance to technological empowerment, make full use of banking and insurance-related financial infrastructure resources, and make full use of relevant data, information, and technological means. Improve inspection efficiency; while using conventional inspection methods, implement penetrating inspections of related parties and funds, and run through the entire process of insurance fund utilization to ensure deep and thorough investigation.
(Article source: Shanghaisecuritiesnewspaper)
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