The China Banking and Insurance Regulatory Commission (CBIRC) recently officially issued the Administration Rules for Insurance Asset Management Companies, which came into force on 1 September, 2022.

There are 7 chapters and 85 articles in the Regulations. Revised contents of the Regulations are conducive to promoting the development of the insurance asset management industry: Firstly, the Regulations make risk management a special chapter and include requirements around risk management system, risk management requirements and internal control audit, in order to ensure the safety of insurance funds and other long-term funds effectively. Secondly, the Regulations reinforce the institutional constraints for corporate governance supervision comprehensively, around the overall requirements, shareholder obligations, incentive and restraint mechanism. The New Rules clearly stipulate that the main promoters, controlling shareholders and actual controllers of insurance asset management companies shall adhere to the long-term investment concept and make a written commitment to hold the equity of insurance asset management companies for not less than five years. During the holding period, they shall not pledge or establish a trust over the equity, unless otherwise specified by the CBIRC.

Source: xinhua.net