The China Banking Regulatory Commission ("CBRC") has recently issued the Guidelines on the Management of Conduct of Practitioners in Banking Financial Institutions (the "Guidelines"), immediately effective from the issue date.
The Guidelines, comprised of 28 articles in five chapters, contain major rules in the following three respects. The first is making clear the governance structure for the management of practitioners' conduct, requiring banking financial institutions to develop the management information system for practitioners to constantly collect relevant information about their conduct. The second is standardizing the institutional improvements to the management of practitioners' conduct, providing that banking financial institutions shall regularly assess the conduct of practitioners, form the long-term monitoring mechanism and the casual inspection mechanism, assess the business-related conduct of practitioners in the recruitment stage and use the assessment results for their conduct as an important basis for the payment of salaries and wages and the promotion. The third is tightening regulation of the management of practitioners' conduct, and banking financial institutions are required to submit their code of conduct for practitioners and assessment reports to the banking regulators concerned.