Recently, the China Banking Regulatory Commission ("CBRC") has released the Guidelines for the Depository Business of Peer-to-Peer ("P2P") Lending Funds (the "Guidelines") which will come into force as of the date of promulgation.
The Guidelines, comprised of five chapters with a total of 29 articles, clearly set forth the basic rules and implementing standards that shall be abided by with regard to the depository business of P2P lending funds, and set aside a six-month transitional period for those institutions that have already engaged in the depository business of P2P lending funds. According to the Guidelines, commercial banks shall separate and keep the self-owned funds and deposited funds of P2P lending institutions under the custody, and calculate such two funds through separate accounts. Commercial banks shall neither provide guarantees for P2P lending transactions and any other related behavior nor bear any liability incurred from the lending default; they are also prohibited to effect bundle sales or charge unreasonable fees in a disguised manner with the excuse of doing fund deposit business. Moreover, commercial banks, as the capital depository banks, shall fulfill their fund deposit related duty of keeping funds under custody with authorization and transferring clients' funds, while P2P lending institutions, as the principals, are required to perform their major duty in information disclosure, data provision, customer service and other aspects. Furthermore, the Guidelines set out necessary qualifications that the principals and capital depository banks shall have to carry out the depository business of P2P lending funds, and standardize specific operating rules.