Featured Product

    CBIRC Finalizes Net Capital Rules for Wealth Management Subsidiaries

    December 02, 2019

    CBIRC published the rules on net capital of wealth management subsidiaries of commercial banks (Provisional). The rules will come into force on March 01, 2020. According to the rules, the net capital of wealth management subsidiaries shall meet the two standards. First, the net capital shall not be less than RMB 500 million and shall not be less than 40% of the net assets. Second, the net capital shall not be lower than the risk capital, with the aim to ensure that the wealth management subsidiaries maintain the net capital at a sufficient level. Additionally, CBIRC published questions and answers (Q&As) on these net capital rules for wealth management subsidiaries of banks.

    From September 20 to October 27, 2019, CBIRC had solicited public opinions on the rules and carefully studied the feedback to include the reasonable suggestions. The rules consist of 20 articles in four chapters. The chapters cover general provisions, net capital regulatory standards, supervision and management, and supplementary provisions. The rules constitute a supporting regulatory policy of the Rules on Wealth Management Business of Commercial Banks. They draw on the net capital regulatory requirements of asset management institutions and make appropriate adjustments based on the Guidance on Regulating Asset Management Business of Financial Institutions and the Rules on Wealth Management Business of Commercial Banks, while taking into consideration the characteristics of wealth management subsidiaries of commercial banks.

    The board of directors of the wealth management subsidiaries shall bear the ultimate responsibility for net capital management while the senior management shall be responsible for the net capital management. Wealth management subsidiaries shall regularly submit to the regulators net capital statements and be responsible for the authenticity, accuracy, and completeness of relevant statements, timely reporting of major changes in supervisory indicators, and disclosure of net capital status in the annual report. For wealth management subsidiaries that do not meet the net capital requirements, the banking regulators may take relevant measures in accordance with laws and regulations. CBIRC will continue to formulate supporting rules and policies and continuously improve the regulatory framework for wealth management business.

     

    Related Links

    Effective Date: March 01, 2020

    Keywords: Asia Pacific, China, Banking, Securities, Wealth Management Subsidiary, Governance, Regulatory Capital, CBIRC

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514