Circular on Printing and Distributing the Implementing Rules for the Interim Administrative Measures on the Overseas Investment of Insurance Funds
Circular on Printing and Distributing the Implementing Rules for the Interim Administrative Measures on the Overseas Investment of Insurance Funds
Circular on Printing and Distributing the Implementing Rules for the Interim Administrative Measures on the Overseas Investment of Insurance Funds
Bao Jian Fa [2012] No. 93
October 12, 2012
All insurance group (holding) corporations, insurance companies, and insurance funds management companies:
The Implementing Rules for the Interim Administrative Measures on the Overseas Investment of Insurance Funds have been formulated by the China Insurance Regulatory Commission (CIRC) pursuant to the Interim Administrative Measures for the Overseas Investment of Insurance Funds for the purpose of standardizing the operation on overseas investment with insurance funds, preventing investment management risks, and maintaining and increasing the value of insurance assets. Now these Implementing Rules are printed and distributed to you for implementation.
Implementing Rules for the Interim Administrative Measures on the Overseas Investment of Insurance Funds
Chapter I General Provisions
Article 1 These Implementing Rules are formulated pursuant to the Interim Administrative Measures on the Overseas Investment of Insurance Funds (hereinafter referred to as the Measures)for the purpose of standardizing the operation on overseas investment with insurance funds, preventing management risks on investment, and maintaining and increasing the value of insurance assets.
Article 2 A party engaged in the overseas investment with insurance funds shall, in accordance with regulations of the Measures and these Implementing Rules, fully study and determine political risks, economic risks, legal risks and otherwise in countries or regions proposed to be invested, and carefully engage in overseas investment.
Article 3 The China Insurance Regulatory Commission (CIRC) shall, in accordance with relevant laws, consistently evaluate and supervise the management ability of the party engaged in the overseas investment with insurance funds.
Chapter II Qualifications
Article 4 A principal shall, in addition to the provisions as provided in Article 9 of the Measures, also meet the following conditions:
1. The principal shall set up posts relevant to overseas investment and employ at least 3 professionals on overseas investment, including at least 2 persons with investment management experience on overseas securities markets for more than 3 years;
2. The principal shall have the adequacy ratio of repayment capacity at or above 120% at the end of the previous quarter when taking investment; and
3. The principal who invests equities of overseas unlisted companies, real estates and relevant financial products shall own investment management capability as required.
Article 5 A domestic agent shall, in addition to the provisions provided in Article 10 of the Measures, also meet the following conditions:
1. The agent shall have more than 3 years' experience in management of insurance assets;
2. Assets managed by the agent for custody in the latest fiscal year shall be not less than RMB10 billion; and
3. The agent shall employ at least 5 overseas investment professionals, including at least 3 persons with investment management experience on overseas securities markets for more than 5 years and at least 2 persons with investment management experience on overseas securities markets for more than 3 years.
Insurance funds managed by the domestic agent for custody are limited to investment in Hong Kong market.
Article 6 An overseas agent shall, in addition to the provisions of Article 11 of the Measures, also meet the following conditions:
1. The agent shall have more than 5 years' experience in management of international assets and more than 3 years' experience in the management of pension or insurance funds;
2. Paid-up capitals or net assets in the latest fiscal year shall be not less than USD 30 million or equivalent value in freely convertible currency;
3. Assets managed by the agent at the latest year shall be not less than USD 30 billion or equivalent value in freely convertible currency; assets of non-related party managed by the agent shall not less than 50% of the total managed assets or not less than USD 30 billion or other convertible currency at the equal value;
4. The investment team shall meet occupational requirements of the country or region where it is located and its members shall have more than 5 years' working experience in average, among whom the major professionals on investment management shall have more than 8 years' working experience; and
5. The agent shall have outstanding investment performances in the past.
Assets that can be calculated jointly can cover assets managed by the agent's parent company or assets managed by the asset management department subordinate to the agent but exclude assets managed or involved by investment advisers, investment banks and otherwise.
The agent engaged in special assets management, if meeting all of the following conditions, may not be subject to the limitations on the managed assets as provided in Item (3) of Paragraph 1:
1.
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