Interim Administrative Measures for Insurance Asset Management Products
Interim Administrative Measures for Insurance Asset Management Products
Interim Administrative Measures for Insurance Asset Management Products
Order of the China Banking and Insurance Regulatory Commission [2020] No. 5
March 18, 2020
The Interim Administrative Measures for Insurance Asset Management Products, which were adopted at the 6th Commission Meeting of 2019 of the China Banking and Insurance Regulatory Commission on July 19, 2019, are hereby issued and shall come into effect as of May 1, 2020.
Guo Shuqing, Chairman
Interim Administrative Measures for Insurance Asset Management Products
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Insurance Law of the People's Republic of China, the Law of the People's Republic of China on Supervision and Administration of the Banking Industry and the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (hereinafter referred to as the "Guiding Opinions") as well as other pertinent laws and regulations with a view to regulating the business of insurance asset management products (hereinafter referred to as "insurance asset management products/product" or "products/product") conducted by insurance asset management institutions and protecting the legitimate rights and interests of investors and relevant parties.
Article 2 These Measures shall apply to the business of insurance asset management products conducted by insurance asset management institutions established within the territory of the People's Republic of China, unless otherwise provided for by laws, administrative regulations or required by the China Banking and Insurance Regulatory Commission (hereinafter referred to as the "CBIRC").
Article 3 For the purpose of these Measures, the business of insurance asset management products refers to the financial services whereby, upon investors' entrustment, an insurance asset management institution establishes one or more insurance asset management products and acts as the manager to conduct investment and management of investors' property entrusted in accordance with laws, regulations and pertinent contractual stipulations.
Insurance asset management products include debt investment plan, equity investment plan, portfolio product and other products prescribed by the CBIRC.
Article 4 Insurance asset management products shall be issued orienting towards accredited investors in a private way.
Article 5 Insurance asset management institutions conducting the business of insurance asset management products shall give play to the advantages of long-standing and stable insurance funds to serve insurance safeguard as well as economic and social development.
Article 6 Insurance asset management institutions conducting the business of insurance asset management products shall abide by laws, administrative regulations and the requirements of the CBIRC, follow the principles of fairness and impartiality, protect investors' legitimate rights and interests, act in good faith, perform duties diligently and avoid conflicts of interest.
Article 7 Insurance asset management institutions conducting the business of insurance asset management products shall strengthen the investor eligibility management, fully disclose information and reveal risks to investors while making no commitment to guaranteeing the principal or income.
An investor investing in any insurance asset management product shall make decisions prudently based on its own capability and assume investment risks independently.
Article 8 The property of insurance asset management products shall be independent of the inherent property of insurance asset management institutions, trustees and other natural persons, legal persons or organizations that provide services for product management, as well as other property under their management. Property and income derived from management, use, disposal of product property or obtained under other circumstances shall be included as product property. Where an insurance asset management institution, a trustee or any other agency is liquidated as a result of legal dissolution, cancelation or declaration of bankruptcy, etc., the product property shall not be included as its liquidating property.
Article 9 The Insurance Asset Management Association of China, Shanghai Insurance Exchange Co., Ltd. and PICC Insurance Asset Registration and Trading System Co., Ltd. shall implement self-discipline management of the business of insurance asset management products conducted by insurance asset management institutions in accordance with laws, administrative regulations and the requirements of the CBIRC.
Article 10 Insurance asset management institutions conducting the business of insurance asset management products shall carry out issuance, registration, trusteeship, transaction, settlement and information disclosure, etc., on Shanghai Insurance Exchange Co., Ltd., PICC Insurance Asset Registration and Trading System Co., Ltd. and other asset registration and trading platforms recognized by the CBIRC (hereinafter referred to as "registration and trading platforms").
Article 11 The CBIRC shall, in accordance with the law, conduct supervision and administration of the business of insurance asset management products.
The CBIRC shall implement penetrating regulation of the business of insurance asset management products, identify end investors and bottom assets of products from up to down, and apply comprehensive dynamic regulation of product operation management.
Chapter II Product Parties
Article 12 For the purpose of these Measures, an accredited investor refers to a natural person, a legal person or any other organization that has corresponding capability of risk identification and risk tolerance, invests at least a certain amount in a single product and meets the following conditions:
1. a natural person who has more than two years of investment experience and meets either of the following conditions: its family's net financial assets are not less than CNY3 million, and its family's financial assets are not less than CNY5 million, or its average annual income in the recent three years is not less than CNY400,000;
2. a legal person whose net assets at the end of the previous year were not less than CNY10 million;
3. an agency subject to regulation by the competent financial regulator along with asset management products issued thereby;
4. pension funds including basic pensions, social security funds and corporate annuities; or
5. other circumstances under which the CBIRC deems a person to be an accredited investor. (Related articles: one review article)
Article 13 An insurance asset management institution conducting the business of insurance asset management products shall meet the following conditions:
1. it has sound corporate governance and a good market reputation while complying with the relevant requirements of the CBIRC on the investment management capability;
2. it has a sound operating process, an internal control mechanism and a risk management and check system while having established mechanisms for arm's length transactions and risk isolation;
3. it has set such professional positions as product development, investment research, investment management, risk control and performance evaluation;
4. it has a stable investment management team and relevant professionals of not less than the required number;
5. it has committed no significantly illegal or non-compliant act during the last three years or as of the date of its establishment it has been established for less than three years; and
6. other prudent conditions required by the CBIRC.
Article 14 An insurance asset management institution conducting the business of insurance asset management products shall perform the following duties:
1.
......
Order of the China Banking and Insurance Regulatory Commission [2020] No. 5
March 18, 2020
The Interim Administrative Measures for Insurance Asset Management Products, which were adopted at the 6th Commission Meeting of 2019 of the China Banking and Insurance Regulatory Commission on July 19, 2019, are hereby issued and shall come into effect as of May 1, 2020.
Guo Shuqing, Chairman
Interim Administrative Measures for Insurance Asset Management Products
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Insurance Law of the People's Republic of China, the Law of the People's Republic of China on Supervision and Administration of the Banking Industry and the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (hereinafter referred to as the "Guiding Opinions") as well as other pertinent laws and regulations with a view to regulating the business of insurance asset management products (hereinafter referred to as "insurance asset management products/product" or "products/product") conducted by insurance asset management institutions and protecting the legitimate rights and interests of investors and relevant parties.
Article 2 These Measures shall apply to the business of insurance asset management products conducted by insurance asset management institutions established within the territory of the People's Republic of China, unless otherwise provided for by laws, administrative regulations or required by the China Banking and Insurance Regulatory Commission (hereinafter referred to as the "CBIRC").
Article 3 For the purpose of these Measures, the business of insurance asset management products refers to the financial services whereby, upon investors' entrustment, an insurance asset management institution establishes one or more insurance asset management products and acts as the manager to conduct investment and management of investors' property entrusted in accordance with laws, regulations and pertinent contractual stipulations.
Insurance asset management products include debt investment plan, equity investment plan, portfolio product and other products prescribed by the CBIRC.
Article 4 Insurance asset management products shall be issued orienting towards accredited investors in a private way.
Article 5 Insurance asset management institutions conducting the business of insurance asset management products shall give play to the advantages of long-standing and stable insurance funds to serve insurance safeguard as well as economic and social development.
Article 6 Insurance asset management institutions conducting the business of insurance asset management products shall abide by laws, administrative regulations and the requirements of the CBIRC, follow the principles of fairness and impartiality, protect investors' legitimate rights and interests, act in good faith, perform duties diligently and avoid conflicts of interest.
Article 7 Insurance asset management institutions conducting the business of insurance asset management products shall strengthen the investor eligibility management, fully disclose information and reveal risks to investors while making no commitment to guaranteeing the principal or income.
An investor investing in any insurance asset management product shall make decisions prudently based on its own capability and assume investment risks independently.
Article 8 The property of insurance asset management products shall be independent of the inherent property of insurance asset management institutions, trustees and other natural persons, legal persons or organizations that provide services for product management, as well as other property under their management. Property and income derived from management, use, disposal of product property or obtained under other circumstances shall be included as product property. Where an insurance asset management institution, a trustee or any other agency is liquidated as a result of legal dissolution, cancelation or declaration of bankruptcy, etc., the product property shall not be included as its liquidating property.
Article 9 The Insurance Asset Management Association of China, Shanghai Insurance Exchange Co., Ltd. and PICC Insurance Asset Registration and Trading System Co., Ltd. shall implement self-discipline management of the business of insurance asset management products conducted by insurance asset management institutions in accordance with laws, administrative regulations and the requirements of the CBIRC.
Article 10 Insurance asset management institutions conducting the business of insurance asset management products shall carry out issuance, registration, trusteeship, transaction, settlement and information disclosure, etc., on Shanghai Insurance Exchange Co., Ltd., PICC Insurance Asset Registration and Trading System Co., Ltd. and other asset registration and trading platforms recognized by the CBIRC (hereinafter referred to as "registration and trading platforms").
Article 11 The CBIRC shall, in accordance with the law, conduct supervision and administration of the business of insurance asset management products.
The CBIRC shall implement penetrating regulation of the business of insurance asset management products, identify end investors and bottom assets of products from up to down, and apply comprehensive dynamic regulation of product operation management.
Chapter II Product Parties
Article 12 For the purpose of these Measures, an accredited investor refers to a natural person, a legal person or any other organization that has corresponding capability of risk identification and risk tolerance, invests at least a certain amount in a single product and meets the following conditions:
1. a natural person who has more than two years of investment experience and meets either of the following conditions: its family's net financial assets are not less than CNY3 million, and its family's financial assets are not less than CNY5 million, or its average annual income in the recent three years is not less than CNY400,000;
2. a legal person whose net assets at the end of the previous year were not less than CNY10 million;
3. an agency subject to regulation by the competent financial regulator along with asset management products issued thereby;
4. pension funds including basic pensions, social security funds and corporate annuities; or
5. other circumstances under which the CBIRC deems a person to be an accredited investor. (Related articles: one review article)
Article 13 An insurance asset management institution conducting the business of insurance asset management products shall meet the following conditions:
1. it has sound corporate governance and a good market reputation while complying with the relevant requirements of the CBIRC on the investment management capability;
2. it has a sound operating process, an internal control mechanism and a risk management and check system while having established mechanisms for arm's length transactions and risk isolation;
3. it has set such professional positions as product development, investment research, investment management, risk control and performance evaluation;
4. it has a stable investment management team and relevant professionals of not less than the required number;
5. it has committed no significantly illegal or non-compliant act during the last three years or as of the date of its establishment it has been established for less than three years; and
6. other prudent conditions required by the CBIRC.
Article 14 An insurance asset management institution conducting the business of insurance asset management products shall perform the following duties:
1.
......