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

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Final Policy on Maintenance of TMTP Under Solvency II

    PRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.

    November 14, 2019 WebPage Regulatory News
    News

    FSB Examines Implementation of Resolution Regimes in Financial Sector

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.

    November 14, 2019 WebPage Regulatory News
    News

    IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic Risk

    IAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Templates for Statistical Disclosures Under Solvency II

    PRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4157