Featured Product

    PBC Notice Clarifies Issues on Rules for Asset Management Businesses

    July 20, 2018

    PBC released a notice to further clarify issues related to the guidelines on regulating asset management businesses of financial institutions. The notice was formulated to prevent and control financial risks more effectively, encourage flow of private capital into the real economy, and provide better support for structural adjustment and upgrading of the economy.

    The guidelines on regulating asset management businesses of financial institutions have played a positive role in improving order in the asset management market and preventing financial risks. To better implement the guidelines, PBC worked with CBIRC and CSRC to formulate this notice. The aim of this notice is to clarify operational issues in the transition period and facilitate the smooth implementation of the guidelines. The notice provides clarification on the following three aspects:

    • Defining the investment range of publicly offered asset management products. The notice further elaborates on Article 10 of the guidelines and stipulates that, besides standard credit assets and stocks of public companies, publicly offered asset management products can also invest, as appropriate, in non-standard credit assets. Such investment shall comply with the regulatory requirements on maturity alignment and limit management and information disclosure for non-standard credit asset investment, as stipulated in the guidelines. 
    • Clarifying the valuation method for asset management products during the transition period. Given that some assets cannot be measured by market value yet, asset management products that are opened regularly and are in closed-end operation for more than half a year in the transition period, in addition to the bank cash management products, can be measured by amortized costs during the transition period.
    • Clarifying macro-prudential policy arrangements in the transition period. To implement the requirement of ensuring smooth transition in the guidelines, the notice clearly states that stock of non-standard assets, which are not resolved after the end of the transition period, can be returned to the balance sheets of banks. PBC shall appropriately adjust relevant parameters in the Macro Prudential Assessment. For non-standard assets, which cannot move back to the balance sheets for special reasons, and for a small number of equity assets, which have not yet matured after the end of the transition period, the notice makes it clear that financial institutions may properly deal with them under the approval of financial regulatory authorities.

    Keywords: Asia Pacific, China, Banking, Securities, Asset Management, Transition Period, Macro-prudential Policy, CBIRC, CSRC, PBC

    Related Articles
    News

    OSFI Publishes Instruction Guide on Solvency Information Return

    OSFI published an instruction guide to assist administrators of pension plans in completing the Solvency Information Return that is required to be filed with OSFI.

    January 17, 2020 WebPage Regulatory News
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    ISDA Paper Examines Legal Aspects of Smart Contracts Using Blockchain

    ISDA published a paper that discusses legal aspects of smart derivatives contracts that use the distributed ledger technology (DLT), which is also commonly known as the blockchain technology.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4505