On June 1, a reporter from China Securities Journal and China Securities Taurus exclusively learned that the China Banking and Insurance Regulatory Commission recently issued the "Notice on Matters Related to Strengthening the Supervision of Related Party Transactions in the Use of Funds by Insurance Institutions".
The "Notice" requires that the major shareholders or actual controllers of insurance institutions, and related parties such as insiders embezzle, embezzle, and obtain insurance funds through related transactions, transfer benefits, transfer property, evade supervision, and conceal risks, etc., and adhere to zero tolerance, Heavy penalties and strict supervision, resolutely curb the use of funds in violation of laws and regulations related transactions, and promote the high-quality development of the insurance industry.
Insurance institutions shall not have three types of behaviors
The "Notice" makes specific requirements for the consolidation of the main responsibility of insurance institutions: related parties of insurance institutions shall not interfere or manipulate the use of funds, and it is strictly forbidden to use insurance funds to conduct related transactions in violation of laws and regulations; insurance institutions shall strengthen the identification and management of related parties in accordance with regulations, Establish and update related party information files in a timely manner; insurance institutions should strengthen the management of the approval procedures for decision-making on the use of funds for related-party transactions, strictly implement the decision-making approval process, authorization mechanism and avoidance mechanism, and there shall be no backlog, omission, inconsistent authorization, or failure to comply with the avoidance principle, etc. Behavior.An insurance institution shall issue an announcement on the disclosure of information on related-party transactions in the use of funds, and there shall be no false records, misleading statements or major omissions.
The "Notice" requires that insurance institutions shall not conduct three types of behaviors when conducting fund utilization business:
The first is to evade the review of related party transactions or regulatory requirements by concealing or concealing related relationships, proxy equity holding, proxy holding of assets, drawer agreements, yin-yang contracts, split transactions, mutual investment of major shareholders, etc.
The second is to break through regulatory restrictions in disguised form through real estate projects, non-insurance subsidiaries, third-party bridge companies, trust plans, investment in asset management products, bank deposits, inter-bank lending, or other channels or nesting methods to designate related parties or related parties. illegal financing.
The third is to lengthen the financing chain in various ways, obscure the essence of business, hide the final flow of funds, illegally finance related parties or designated parties of related parties, transfer assets, idle arbitrage, and hide risks.
Focus on monitoring the insurance institutions established by the aggressive expansion of industrial capital investment
In terms of strengthening supervision and management, the "Notice" emphasizes that the supervision of related-party transactions in the use of funds by insurance institutions should focus on monitoring and inspecting the following institutions and behaviors:
Insurance institutions invested and established by financial control platforms or invisible financial control platforms with capital operation as the main business; insurance institutions established by industrial capital investment with high leverage ratio, tight capital flow and aggressive expansion; insurance institutions with highly concentrated equity and irregular operation ;
Insurance institutions that have a high proportion of deposits in high-risk banks, a high concentration of alternative investments, a large amount of related-party transactions, a high proportion of related-party transactions in the use of funds, or abnormal related-party transaction information disclosure;
Pay attention to investment in business fields such as bank deposits, unlisted enterprise equity, private equity investment funds, trust plans, etc., and identify the behavior of illegally providing financing, pledge guarantees, transferring benefits, and transferring assets to related parties or designated parties of related parties;
Risk assets have not been depreciated for a long time, and they have not been disposed of and reported for a long time, and they have concealed asset risks and delayed risk exposure by means of sequels.
Record illegal shareholders and related parties into the bad record database
The "Notice" emphasizes that the principle of double punishment is adhered to, and the following measures shall be taken in accordance with the law for institutions and individuals involved in the use of funds of insurance institutions in violation of laws and regulations:
For illegal shareholders and related parties, enter the database of bad records, include them in the list of bad shareholders, make public announcements to the public, restrict or suspend related transactions, restrict shareholders' rights, order the transfer of equity, restrict market access, and urge or order them to bear the responsibility for compensation;
For insurance institutions that violate laws and regulations, calculate the amount of fines one by one, confiscate illegal gains, limit the scope of business, stop accepting new business, and revoke business licenses;
For relevant responsible persons, especially directors, supervisors, and senior management personnel, warn, order corrections, record them in performance records and issue industry reports, impose fines, revoke their qualifications, prohibit them from entering the insurance industry for a certain period of time until life, and supervise or order them to bear compensation liability. ;
For institutions or individuals that cooperate with insurance institutions to carry out illegal affiliate transactions in the use of funds, record their bad behavior and notify their industry competent authorities; if the circumstances are serious, insurance institutions are prohibited from cooperating with them, and relevant regulatory authorities are advised to impose administrative penalties in accordance with the law.
For insurance institutions and individuals with serious violations, bad nature, and repeated investigations and repeated offenses, heavier penalties will be given and industry notification and public disclosure will be made.
(Editor in charge: Ma Xin)
