Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks

Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks
Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks

Order of the China Banking and Insurance Regulatory Commission [2018] No.7

December 2, 2018

The Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks, adopted at the six chairman's meeting of the China Banking and Insurance Regulatory Commission in 2018, are hereby promulgated and shall take effect immediately from the date of promulgation.

Chairman, Guo Shuqing

Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks

Chapter I General Provisions
Chapter II Establishment, Alteration and Termination
Chapter III Business Rules
Chapter IV Risk Management
Chapter V Supervision and Administration
Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 With a view to strengthening the supervision and administration of the wealth management subsidiaries of commercial banks and lawfully protecting the legitimate rights and interests of investors, the Administrative Measures for the Wealth Management Subsidiaries of Commercial Banks (the "Measures") are hereby formulated in accordance with laws and administrative regulations such as the Banking Regulation Law of the People's Republic of China, the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (the "Guiding Opinions") and the Measures for the Supervision and Administration of the Wealth Management Business of Commercial Banks (the "Administrative Measures for Wealth Management Business").

Article 2 For the purpose of the Measures, the wealth management subsidiaries of banks refer to the non-bank financial institutions established by commercial banks within the territory of the People's Republic of China upon approval by the banking regulatory authority of the State Council and primarily engaged in wealth management business.
For the purpose of the Measures, wealth management business refers to the financial services that a wealth management subsidiary of a bank is entrusted by an investor to make investment by and manage entrusted property of the investor as per the investment strategies, risk sharing and income distribution agreed upon with the investor in advance.
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