CBIRC published final measures for the supervision and administration of financial management business of commercial banks. The publication of these final measures followed a consultation, the comment period for which ended on August 19, 2018. These measures become effective from the date of promulgation—that is, September 26, 2018.
These measures are consistent with the regulations on asset management, which were issued on April 27, 2018, and are positioned to regulate non-guaranteed wealth management products of banks. The measures focus on the following key factors:
- Strictly distinguishing between public and private wealth management products
- Strengthening the appropriate management of investors
- Standardizing product operations and implementing net worth management
- Standardizing the operation of fund pools to prevent “shadow banking” risks
- Removing channels and strengthening penetration management
- Limiting and controlling concentration risk
- Strengthening liquidity risk management and control and controlling leverage level
- Strengthening management of financial investment cooperation institutions, strengthening information disclosure, and protecting the legitimate rights and interests of investors
- Implementing centralized product registration and strengthen the management of financial products’ compliance
The transition period requirements of the measures are consistent with those of the “New Regulations for Asset Management” and the transition period runs from the implementation of the measures to December 31, 2020. During the transition period, the newly issued wealth management products of commercial banks shall comply with the provisions of these measures; for stock wealth management products, commercial banks may issue unexpired assets invested by old products in connection with stock wealth management products, but shall strictly control the overall scale of the stock products. After the end of the transition period, commercial bank wealth management products shall be fully regulated and managed in accordance with these measures and the “Guidance Opinions,” except for cases where the factor company has not been established and cannot meet the requirements for independent third-party custody; commercial banks may not re-issue or remain inconsistent with the guidance.
Related Links (in Chinese)
Effective Date: September 26, 2018
Keywords: Asia Pacific, China, Banking, Wealth Management Products, Asset Management, CBIRC
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.