The China Banking and Insurance Regulatory Commission ("CBIRC") has recently issued the Interim Measures for the Equity Management of Trust Companies (Draft for Comment) (the "Draft for Comment") for public consultation by December 22, 2019.
The Draft for Comment contains 78 articles divided into six chapters which are general provisions, responsibilities of shareholders of trust companies, responsibilities of trust companies, supervision and administration, legal liability, and supplementary provisions. The major contents deal with three aspects as below. The first is further stepping up the management of shareholders, particularly major shareholders, of trust companies, from the perspectives of market access, dynamic management of equity information, category-based management and control of shareholders' behavior, etc. The second is further intensifying the management of related-party transactions of trust companies from the angles of principles for management of related-party transactions, the name list-based management of related parties, and internal control mechanism for related-party transactions, in order to have trust companies fulfill their responsibilities for management of related-party transactions. And the third is prompting trust companies to improve the buildup of the corporate governance mechanism by assigning responsibilities for corporate governance to their shareholders and at the company level and clearly defining the responsibilities of different subjects in the process of equity changes and of equity holdings.