The Measures for the Administration of Related Party Transactions of Financial Holding Companies is a document formulated and implemented by China Banking Regulatory Commission, which came into effect on March 18, 2008. The Measures mainly stipulate the approval procedures, limits and information disclosure of related transactions between financial holding companies and their subsidiaries, aiming at strengthening the supervision of financial holding companies and preventing related risks. According to this method, financial holding companies and their subsidiaries need to perform internal approval procedures and submit relevant materials when conducting related transactions. If the amount involved exceeds a certain limit, it must be reported to the regulatory authorities; If the amount involved is large or the impact is large, it needs to be approved by the regulatory authorities. In addition, financial holding companies should also disclose related party transactions to the public and accept social supervision and evaluation. This method specifically restricts the related transactions between financial holding companies and their subsidiaries, mainly in three aspects: first, the proportion of related transactions shall not exceed 35% of net capital; Second, the single amount shall not exceed 65,438+00% of the net capital; Third, the accumulated amount shall not exceed 50% of the net capital. In addition, it also stipulates that financial holding companies should set up special institutions to be responsible for the approval and quota of related party transactions, and report relevant information regularly.
What is a financial holding company? A financial holding company refers to a company that directly or indirectly controls two or more financial institutions and takes financial business as its main business scope. Its establishment and management need to comply with relevant laws, regulations and regulatory requirements.
The Measures for the Administration of Related Party Transactions of Financial Holding Companies is an important measure to strengthen the supervision of financial holding companies and promote their steady operation. When a financial holding company conducts related party transactions, it needs to be approved and disclosed in accordance with the provisions of these Measures, and at the same time, it needs to abide by relevant restrictions such as proportion and limit.
Legal basis:
Article 16 of the Measures for the Administration of Related Party Transactions of Financial Holding Companies, the total amount of related party transactions of financial holding companies and their subsidiaries shall not exceed 50% of their net capital; Among them, a single related party transaction shall not exceed 10% of its net capital. Financial holding companies and their subsidiaries shall handle foreign exchange management procedures in accordance with the relevant provisions of the People's Bank of China when conducting related transactions with overseas related parties.