Featured Product

    CBIRC Notice on Insurance Fund Investment in Collective Trust Funds

    July 01, 2019

    CBIRC has amended the "Notice of Issues concerning the Insurance Fund Investment in Collective Trust Funds." The notice is intended to strengthen administration of investments in collective trust funds by insurance institutions, regulate investor behavior, and prevent investment risks of insurance funds. This notice shall come into force from the date of issuance.

    The notice will expand the cooperation between insurance institutions and trust companies and help create a level playing field for both parties. It clarifies the supervisory objectives of preventing the use of trust as shadow bank channels and avoiding the embedded complex structures to cap non-compliant investments. It also clarifies the scope for the underlying asset investment, which helps insurance institutions to take advantage of the expertise of trust companies in non-standard assets to enable insurance funds to better serve the real economy. The notice also applies the principle of “non-retroactivity” to ensure sufficient liquidity for relevant institutions, along with a stable market transition.

    The revised notice contains 19 articles, out of which certain articles have been either retained or modified from the earlier notice and some articles have been added to the new notice. The new notice retains requirements related to the decision making and authorization mechanism of insurance institutions investing in trust funds, qualification of professional responsible persons, scope of underlying assets, legal risks, post-investment management, information reporting, and industry self-discipline. The new notice also amends information on requirements for trust companies' qualifications, credit rating of trust funds, connected transactions, and accountability mechanism, among others. Finally, the new notice added new requirements such as banning the use of trust companies as conduit, enhancing proactive management responsibilities of trust companies, looking through underlying assets, strengthening suitability management of investors, imposing caps on investment proportions, and credit enhancement arrangement and conditions for exemption from credit enhancement.

     

    Related Links

    Effective Date: July 01, 2019

    Keywords: Asia Pacific, China, Insurance, Insurance Fund Investment, Collective Trust Funds, Regulation and Supervision, CBIRC

    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153