CBIRC Consults on Interim Rules on Insurance Asset Management Products
CBIRC is consulting on draft interim rules on insurance asset management products in China. CBIRC has drafted the interim rules in accordance with the requirements of the guidance on regulating asset management business of financial institutions (guidance). The formulation of the interim rules is an important step to implement the requirements of the guidance and improve the regulation of asset management business in China. It will help regulate the development of insurance asset management products and broaden the scope and investment channels of long-term insurance funds. The deadline for comments is December 27, 2019. Additionally, CBIRC published a set of questions and answers (Q&A) related to the interim rules.
The interim rules consist of 67 articles in 8 chapters, covering general provisions, product-related parties, product offerings and distribution, investment and management, information disclosure and reporting, risk management, supervision, and supplementary provisions. The following are the key highlights of the rules:
- Insurance asset management products are classified as non-publicly placed products to qualified investors. The products include debt investment plans, equity investment plans, and portfolio insurance asset management products.
- To push forward the reform of streamlining administrative procedures, debt investment plans and equity investment plans can be offered following the registration process, while portfolio insurance asset management products can be offered after due filing.
- From the perspective of prudential supervision, the investment scope of insurance fund in asset management products shall comply with the regulatory requirements on insurance fund investment.
- The insurance asset management companies shall strengthen capacity building in investment management, enforce the accountability of responsible personnel, and improve the comprehensive risk management for products.
- Reinforcement of the responsibilities of product service agencies include specifying the qualification requirement and responsibilities of custodians, investment advisers and other service agencies and reinforcing accountability and supervision of relevant service agencies.
- Insurance asset management companies are required to set aside risk reserves in accordance with regulations and strengthen their identification and reporting obligations for related-party transactions.
- Insurance asset management companies shall effectively identify the actual investors and the ultimate source of funds invested in their products, in addition to fully disclosing information such as target areas, objects of investment, and transaction structures.
The interim rules are consistent with the guidance in terms of transitional arrangements. CBIRC will further revise and improve the interim rules based on the feedback received before issuance for implementation in due course.
Related Links
- Press Release (in English)
- Notice (in Chinese)
- Q&A (in Chinese)
Comment Due Date: December 27, 2019
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
IMF Publishes Reports on 2019 Article IV Consultation with GreeceRelated Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
