In recent years, the regulatory and regulatory system for the use of insurance funds has been continuously improved, with more than 90 relevant regulations and regulatory documents covering asset-liability management, major asset ratios, investment management capabilities, variety investment specifications, insurance asset management companies, and insurance asset management. Regarding product supervision, etc., both functional supervision and institutional supervision embody the concept of prudential supervision and effectively promote the standardized and stable development of insurance funds. On the other hand, with the development of the macroeconomic situation and changes in the financial market, especially the deepening of the market-oriented reform of the use of insurance funds, individual regulatory provisions have lagged behind and need to be revised in keeping with the times. In order to further stimulate the vitality of market entities, improve the quality and efficiency of insurance funds in serving the real economy, and effectively prevent risks in related fields, the China Banking and Insurance Regulatory Commission has carried out a centralized revision of some regulatory documents, and recently issued the “Regarding the revision of some regulatory documents in the field of insurance funds utilization” “Notice” (hereinafter referred to as “Notice”).
There are 14 articles in the “Notice”, the main contents include: First, the restriction on the number of service brokers and custodians for insurance institutions to participate in securities transactions will be removed, and information disclosure of investment management capabilities will be reduced. Frequency, and further encourage insurance institutions to independently invest in standardized products. The second is to allow insurance funds to invest in equity investment funds that are actually controlled by non-insurance financial institutions, remove the limit on the raising scale of insurance funds investment in a single venture capital fund, support insurance institutions to strengthen cooperation with professional equity investment institutions, and enrich long-term funding sources for startups . The third is to allow the sponsors of insurance private equity funds and their affiliated insurance institutions to independently choose the investment ratio according to investment strategies, simplify the decision-making process of insurance companies investing in insurance private equity funds, and improve the level of product market operation. The fourth is to abolish the external credit rating requirements for insurance asset management companies to establish and manage debt investment plans and asset-backed plans, and to enhance the autonomy of market entities in using external ratings. Fifth, cancel the pre-assessment requirements for insurance funds to carry out overseas loan business under domestic guarantees, consolidate the main responsibility of institutions, and prevent overseas financing risks. Sixth, in the current insurance policy on the proportion of major insurance assets, additional restrictions on the proportion of investment in non-standardized financial products and real estate assets have been added to prevent investment risks in the field of non-standardized assets.
The issuance of the “Notice” is a pragmatic measure for regulatory rules to adapt to market development and changes, which is conducive to enhancing the investment autonomy of market entities and providing long-term capital for the multi-level capital market At the same time, it will guide insurance funds to increase investment in standardized products to prevent investment risks. In the next step, the China Banking and Insurance Regulatory Commission will adhere to the general tone of the work of seeking progress while maintaining stability, continue to deepen the market-oriented reform of the use of insurance funds, guide insurance funds to increase support for key areas, and improve the quality and efficiency of serving the real economy. For the few insurance companies that invest in non-standardized assets exceeding the regulatory ratio, the China Banking and Insurance Regulatory Commission will strengthen window guidance, orderly reduce the stock business, and promote stable rectification in place.
Notice of the China Banking and Insurance Regulatory Commission on Amending Some Regulatory Documents in the Field of Insurance Fund Application
Insurance group (holding) companies, insurance companies, insurance asset management Company:
In order to further deepen the reform of “delegating management and service”, enhance market vitality, and improve the quality and efficiency of insurance funds in serving the real economy, the China Banking and Insurance Regulatory Commission will regulate the use of current insurance funds. The documents were cleaned up and it was decided to amend 14 normative documents.
1. Delete Article 11 of the “Guidelines for the Custody of Stock Assets of Insurance Companies (for Trial Implementation)” (Bao Jian Fa [2005] No. 16) “Insurance companies shall entrust one The custodian takes care of stock assets. If multiple insurance companies share a stock trading seat, they should choose the same custodian.”
2. Delete the “Regarding China Insurance Regulatory Commission The Circular on Regulating the Stock Investment Business of Insurance Institutions (Bao Jian Fa [2009] No. 45) states that “According to the needs of market development, the IC will decide to implement a filing system for the stock investment of insurance companies. Insurance companies shall comply with the “Insurance Companies’ Stock Investment Capability Standards” “And the principle of marketization, choose direct stock investment or entrusted investment methods, and file with the CSRC” regulations and related appendices.
3. Delete Article 7 3 of the “Circular of China Insurance Regulatory Commission on Issues concerning Investment Securities Transactions by Insurance Institutions” (Bao Jian Fa [2011] No. 77) Regarding the “Insurance institution’s participation in the pilot project of the special institutional client model, it shall reasonably determine the number of service brokers and the number of securities accounts in accordance with the cost-benefit principle and business needs. The number of service brokers selected shall not exceed 3, and the securities accounts opened by each service broker No more than 3″ regulations.
4. Delete the “Notice of China Insurance Regulatory Commission on Issues Concerning Investment in Equity and Real Estate by Insurance Funds” (Bao Jian Fa [2012] No. 59) “Adjustments “Article 6 “Equity investment funds invested by insurance funds, non-insurance financial institutions and their subsidiaries shall not actually control the management and operation of the fund, or hold the general partnership equity of the fund.”
5. Delete the “Implementation Rules of the Interim Measures for the Management of Overseas Investment of Insurance Funds” (Bao Jian Fa [2012] No. 93), Article 12 concerning “Equity investment funds invested by insurance funds, financial Institutions and their subsidiaries shall not actually control the management and operation of the fund, and shall not hold the general partnership equity of the fund”.
6. Delete Article 5 of the “Notice of the China Insurance Regulatory Commission on Regulating Bank Deposit Business of Insurance Funds” (Bao Jian Fa [2014] No. 18), “Insurance companies shall report bank deposits in a timely manner in accordance with regulations Business information. If an insurance company uses bank deposit pledges to finance itself, both the insurance company and the custodian institution shall report on a case-by-case basis.”
Abolish the “Pledge of Interbank Deposit Certificates” issued by the original China Insurance Regulatory Commission Regulatory Scope of Financing Business Report” (Finance Department Han [2017] No. 190).
7. Delete the “Notice of the China Insurance Regulatory Commission on Matters Concerning the Investment of Insurance Funds in Venture Capital Funds” (Bao Jian Fa [2014] No. 101) concerning the “single Only the fund raising scale does not exceed 500 million yuan”.
8. Delete Article 20 of the “Interim Measures for the Administration of Asset Support Plan Business” (Bao Jian Fa [2015] No. 85) “The trustee shall be hired to meet regulatory requirements The credit rating agency of the country conducts initial rating and follow-up rating on the beneficiary certificates. During the duration of the support plan, the follow-up credit rating should not be less than once a year.”
9. Delete ” Notice of the China Insurance Regulatory Commission on Matters Concerning the Establishment of Insurance Private Equity Funds (Bao Jian Fa [2015] No. 89), Article 9, Paragraph 2, “The sponsors and their associated insurance institutions contribute or subscribe for a capital not less than 30% of the proposed fundraising scale. %.”
10. Delete the “Regulations for the Initiation of Private Equity Funds by Insurance Funds” issued by the original China Insurance Regulatory Commission (Finance Department Han [2017] No. 180) No. 2 Article on “and submit to the shareholders (general) meeting or board of directors for decision-making” provisions.
11. Delete the “Notice of the China Insurance Regulatory Commission and the State Administration of Foreign Exchange Regarding Matters Concerning Regulating Insurance Institutions to Carry Out Domestic Guarantee Overseas Loan Business” (Insurance Regulatory Issue [2018] 5 No.) Article 7 “Insurance institutions that carry out domestic guarantees and overseas loans, and their special-purpose company’s single investment project obtains loan funds of more than 50 million U.S. dollars (or equivalent currency), they need to report to the China Insurance Asset Management Association in advance, The assessment is organized by the Insurance Asset Management Association of China.”
12. Delete the “Notice of the China Banking and Insurance Regulatory Commission on Matters Concerning Optimizing the Supervision of the Investment Management Capability of Insurance Institutions” “(Yinbaojianfa [2020] No. 45) Articles 10 and 12 are related to requirements for semi-annual information disclosure. Amend Article 10 to read “Insurance institution’s investment management capability information disclosure includes first disclosure, annual disclosureDisclosure and disclosure of major events. “Article 12 is amended as “Insurance institutions shall conduct self-assessment of the compliance status of various investment management capacity building at least annually, and publicly disclose investment management capacity building and self-assessment status before January 31 of each year.” “
13. Delete the “Detailed Rules for the Implementation of Debt Investment Plans” in the three documents including the Detailed Rules for the Implementation of Portfolio Insurance Asset Management Products (issued by the Office of the China Banking and Insurance Regulatory Commission [2020] No. 85) Article 8 on external credit rating requirements. Article 8 is amended to read “Insurance asset management institutions shall conduct due diligence and feasibility studies to establish debt investment plans, scientifically set transaction structures, fully evaluate related risks, and strictly Perform various procedures, conduct independent reviews and decisions, and hire professional service organizations with corresponding qualifications to make clear judgments and conclusions on the legality and compliance of the establishment of a debt investment plan. “
14. Article 2 of the “Notice of the China Insurance Regulatory Commission on Strengthening and Improving the Supervision of the Use of Insurance Funds” (Bao Jian Fa [2014] No. 13) “Establish The first paragraph of item (2) in the “Proportion of Major Assets Supervision” is amended to read “The book balance of investment in real estate assets shall not exceed 30% of the company’s total assets at the end of the previous quarter. Among them, the total assets not traded in the trading markets approved by the State Council, such as the inter-bank market and the stock exchange market, shall not exceed 25% of the company’s total assets at the end of the previous quarter. The book balance does not include self-use real estate purchased by insurance companies. “
Amend item (3) in Article 2 “Establishing a Supervisory Ratio of Major Assets” to “The book balance of investment in other financial assets, the total amount shall not exceed 25% of the company’s total assets at the end of the previous quarter. Among them, the assets that are not traded in the trading markets approved by the State Council, such as the inter-bank market and the stock exchange market, shall not exceed 20% of the company’s total assets at the end of the previous quarter. ”
In addition, if the provisions are deleted, the serial numbers of other provisions will be adjusted accordingly.
China Banking Regulatory Commission
December 8, 2021