The new regulations on the management of insurance asset management companies will be implemented on September 1, and the content of chapters and terms will be significantly revised
The China Banking and Insurance Regulatory Commission recently officially issued the “Regulations on the Administration of Insurance Asset Management Companies” (hereinafter referred to as the “Regulations”), which will come into force on September 1, 2022. There are 7 chapters and 85 articles in the “Regulations”, which have been significantly revised in terms of chapter structure and content, such as: adding a special chapter on corporate governance; making risk management a special chapter; optimizing the design requirements of the shareholding structure; optimizing the operating principles and related requirements; supplementary regulatory means and non-compliance constraints.
Since 2003, my country has established 33 insurance asset management companies. “At present, various insurance asset management companies manage total assets of more than 20 trillion yuan through the issuance of insurance asset management products and entrusted management funds. Insurance asset management companies have become core managers of long-term funds such as insurance funds and major institutions in the capital market. Investors and an important force serving the real economy.” Talking about the reasons for revising the “Regulations”, the relevant person in charge of the China Banking and Insurance Regulatory Commission said.
Specifically, the “Regulations” emphasize the importance of corporate governance, and add a special chapter, combined with the regulatory practice in recent years, from the overall requirements, shareholder obligations, incentive and restraint mechanisms, the operation of the shareholders’ meeting and the board of directors and supervisors, the establishment of professional committees, independent directors The system, the chief risk management executive officer, and the part-time job of senior executives have clarified requirements, enhance the independence of insurance asset management companies, and comprehensively strengthen the institutional constraints of corporate governance supervision.
The “Regulations” also fully implement the measures of the Office of the State Council’s Financial Commission to “cancel the requirement that domestic insurance companies hold no less than 75% of the shares of insurance asset management companies, and allow foreign investors to hold more than 25% of the shares.” The upper limit of the proportion of shares held by foreign insurance companies in insurance asset management companies, and the establishment of shareholder qualifications that are uniformly applicable to domestic and foreign shareholders will help attract international outstanding insurance companies and asset management institutions to participate in the development of China’s insurance asset management industry.
Zhou Jin, a partner of PwC China’s financial industry management consulting, said that many new contents of the “Regulations” are conducive to promoting the development of the insurance asset management industry: First, the risk management system, risk management requirements, internal control audit, related transaction management, risk preparation Gold and other aspects clarified the requirements and provided more specific standards for industry risk management. Secondly, it highlights the importance of corporate governance in ensuring the sustainable development of insurance asset management companies and the long-term health of the industry, and clarifies requirements on shareholder behavior, the establishment of professional committees, the independent director system, and the chief risk management executive, and strengthens corporate governance supervision. institutional constraints. (Reporter Xiang Jiaying)