Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation)
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation)
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation)
Order of the China Banking and Insurance Regulatory Commission [2019] No. 5
November 29, 2019
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation), adopted at the 6th executive meeting of the China Banking and Insurance Regulatory Commission 2019, are hereby issued and shall come into force as of March 1, 2020.
Chairman Guo Shuqing
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation)
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Law of the People's Republic of China on Banking Supervision and Administration and other laws and administrative regulations, as well as the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions, the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks and the Administrative Measures for Wealth Management Subsidiaries of Commercial Banks with a view to strengthening the supervision and administration of wealth management subsidiaries of commercial banks (hereinafter referred to as "wealth management bank subsidiaries"), promoting the safe, stable and sound operation of wealth management bank subsidiaries, and protecting the legitimate rights and interests of investors.
Article 2 The Measures shall apply to wealth management bank subsidiaries legally established within the territory of the People's Republic of China.
Article 3 Wealth management bank subsidiaries shall carry out net capital management in accordance with the Measures, and in light of their own business development situations, establish their net capital monitoring and replenishment mechanisms to ensure the continuous compliance with net capital regulatory requirements.
Article 4 Wealth management bank subsidiaries shall, in accordance with the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks and other regulatory provisions, conduct stress tests on a regular basis, measure and calculate their net capital adequacy levels under different stress scenarios, and ensure the effective application of stress test results.
Article 5 The board of directors of a wealth management bank subsidiary shall undertake the ultimate responsibility for its own net capital management, be responsible for setting its net capital management objectives, and approving and supervising the implementation of its net capital management plans.
Article 6 The senior management of a wealth management bank subsidiary shall be responsible for organizing the implementation of net capital management work, including the formulation and implementation of its net capital management policies and procedures, assessing its net capital adequacy level on a regular basis, and reporting its net capital management to the board of directors in writing at least once every quarter.
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Order of the China Banking and Insurance Regulatory Commission [2019] No. 5
November 29, 2019
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation), adopted at the 6th executive meeting of the China Banking and Insurance Regulatory Commission 2019, are hereby issued and shall come into force as of March 1, 2020.
Chairman Guo Shuqing
Measures for Net Capital Management of Wealth Management Subsidiaries of Commercial Banks (for Trial Implementation)
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Law of the People's Republic of China on Banking Supervision and Administration and other laws and administrative regulations, as well as the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions, the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks and the Administrative Measures for Wealth Management Subsidiaries of Commercial Banks with a view to strengthening the supervision and administration of wealth management subsidiaries of commercial banks (hereinafter referred to as "wealth management bank subsidiaries"), promoting the safe, stable and sound operation of wealth management bank subsidiaries, and protecting the legitimate rights and interests of investors.
Article 2 The Measures shall apply to wealth management bank subsidiaries legally established within the territory of the People's Republic of China.
Article 3 Wealth management bank subsidiaries shall carry out net capital management in accordance with the Measures, and in light of their own business development situations, establish their net capital monitoring and replenishment mechanisms to ensure the continuous compliance with net capital regulatory requirements.
Article 4 Wealth management bank subsidiaries shall, in accordance with the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks and other regulatory provisions, conduct stress tests on a regular basis, measure and calculate their net capital adequacy levels under different stress scenarios, and ensure the effective application of stress test results.
Article 5 The board of directors of a wealth management bank subsidiary shall undertake the ultimate responsibility for its own net capital management, be responsible for setting its net capital management objectives, and approving and supervising the implementation of its net capital management plans.
Article 6 The senior management of a wealth management bank subsidiary shall be responsible for organizing the implementation of net capital management work, including the formulation and implementation of its net capital management policies and procedures, assessing its net capital adequacy level on a regular basis, and reporting its net capital management to the board of directors in writing at least once every quarter.
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