Trial Measures for the Supervision and Administration of Financial Holding Companies

Legal analysis: The CPC Central Committee and the State Council attached great importance to the supervision of financial holding companies, and explicitly demanded to standardize the comprehensive financial operation and the combination of industry and finance, strengthen the overall supervision of financial holding companies, and speed up the completion of the shortcomings of the supervision system. The promulgation and implementation of the Financial Regulation Measures is an important measure to implement the decision-making arrangements of the CPC Central Committee and the State Council. The Measures for Financial Supervision follows the concept of macro-prudential management, is based on consolidated statements, and is based on the principles of comprehensiveness, continuity and permeability. Financial holding companies formed by investment and holding of non-financial enterprises shall be admitted and supervised according to law, and their business behaviors shall be standardized. The implementation of the Measures for Financial Supervision will continue to adhere to the principle of giving priority to the overall separate operation of the financial industry, and isolate the industrial sector from the financial sector from the system, which will be conducive to the sustained and healthy development of financial holding companies, prevent cross-infection of risks, and further promote a virtuous circle of economy and finance.

Legal basis: Trial Measures for Supervision and Management of Financial Holding Companies

Article 1 In order to regulate the behavior of financial holding companies, strengthen the supervision and management of financial holding companies established by non-financial enterprises, and prevent systemic financial risks, according to the People's Bank of People's Republic of China (PRC) Law, People's Republic of China (PRC) Company Law, People's Republic of China (PRC) Commercial Bank Law, People's Republic of China (PRC) Securities Law, People's Republic of China (PRC) Securities Investment Fund Law, People's Republic of China (PRC) Insurance Law and People's Republic of China (PRC) Insurance Law.

Article 2 The term "financial holding company" as mentioned in these Measures refers to a limited liability company or a joint stock limited company established according to law, holding or actually controlling two or more different types of financial institutions, which only manages equity investment and does not directly engage in commercial activities. These Measures shall apply to financial holding companies whose controlling shareholders or actual controllers are domestic non-financial enterprises, natural persons and recognized legal persons. Financial groups formed by cross-industry investment and holding of financial institutions shall determine the regulatory policy standards with reference to these Measures, and the specific rules shall be formulated separately.

The financial institutions mentioned in these Measures include the following types:

(1) Commercial banks (excluding village banks) and financial leasing companies.

(2) Trust companies.

(3) Financial asset management companies.

(4) Securities companies, Public Offering of Fund management companies and futures companies.

(5) Life insurance companies, property insurance companies, reinsurance companies and insurance asset management companies.

(six) other institutions identified by the financial management department of the State Council.