|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
In order to further intensify the supervision of foreign-funded financial institutions and promote the representative offices of foreign-funded financial institutions to carry out relevant operation according to the relevant laws and regulations, we hereby notify the relevant issues as follows: I. Further intensifying the supervision of and research on the representative offices of foreign-funded financial institutions: The banking regulatory bureaus of all regions shall, according to the principle of territorial administration, carry out an examination of and research on all the representative offices of foreign-funded financial institutions within their jurisdiction before the end of 2004. As to any region where the representative offices of foreign-funded financial institutions are comparatively dense, the relevant banking regulatory bureau may, in combination with the 2004 annual work reports as submitted by the representative offices of foreign-funded financial institutions, carry out relevant examination and research on a regular basis and in batches. Such multiple forms as questionnaires, on-the-spot interviews and seminars may be adopted for a research, where the focus shall be put on the update of basic information of representative offices as well as investigation into their observance of the relevant regulations: (1) The update of basic information shall at least include: 1. The information of the parent organization of a representative office: the updated business indicators, structure of organization and management, business features and business orientation of its parent organization in China; 2. Functionary orientation of a representative office: a written stipulation or authorization as granted by its parent organization on work functions, the method of examination on the performance of the representative office as well as its work staff and the relationship between the remuneration system and work achievement; 3. Expenditure of a representative office: whether or not the expenditure is subject to auditing, how to keep the account book and original credence regarding expenditure; 4. Personnel of a representative office and their work division: the number of incumbent staff, their basic information such as academic background and practice experience, statement on the functions and duties of all posts; 5. Electronic equipment of a representative office: whether or not the business operation system of its parent organization has been installed in the computers of the representative office, whether or not the representative office has been connected to the local area network of its parent organization through the Internet, whether or not there is any special computer room for the server and whether or not the special data telecommunication leased line of the telecommunication sector is applied; (2) An investigation into the observance of the relevant regulations shall mainly include: 1. Whether or not a representative office engages in such non-business activities as consulting, contact and market research according to relevant laws and regulations; whether or not a representative office has unlawfully engaged in or involved with any business; 2. Whether or not such matters as establishment, alteration and termination of a representative office are handled according to the prescribed procedures; whether or not the alteration of such senior managers as chief executive officer (CEO) is reported for approval or for archival filing according to the prescribed procedures and whether or not such post title as ˇ°customer managerˇ±, which is incompatible with the title of the staff in a representative office, is applied in any foreign-related work; 3. Whether or not a representative office submits such materials as the annual report of its parent organization to the relevant dispatched office of the banking regulatory bureau at the locality in a timely manner; whether or not a representative office reports any significant event of its parent organization in a timely manner; 4. Familiarity with and mastering of the laws and regulations of China on finance: whether or not a representative office carries out necessary training of laws and regulations for its work staff on a periodic basis; whether or not the representative office has deployed any special personnel in charge of the follow-up and research on the laws and regulations of China on finance as newly promulgated. II. All the banking regulatory bureaus shall intensify the administration of supervisory archives of representative offices, adopt classified supervision over the representative offices of foreign-funded financial institutions within their jurisdiction and allocate the supervisory resources in a reasonable manner. Relevant attention shall be attached to the representative offices under the following circumstances: (1) Where the relevant parent organization has comparatively vigorous business in China; (2) Where the relevant parent organization inclines to develop its localized business; (3) Where the relevant parent organization characterizes its business as an agent; (4) Where the number of work staff in a representative office reaches or exceeds 6 persons; (5) Where the locality of a representative office is a client-intensive area of its parent organization or business branch; or (6) Where the computers of a representative office are installed with the business operation system that is connected to its parent organization, wherein the data telecommunication leased line is applied. At the same time, a banking regulatory bureau shall establish with the relevant departments in charge of international business of Chinese-funded banks within its jurisdiction a work communication mechanism that is operated on a periodic basis so as to obtain such information as whether or not any work staff of a representative office makes any sales promotion door to door or engages in any profit-making business or whether or not any staff of a organ, which has not obtained an approval for establishment as a representative office, engages in any marketing activity in the name of a CEO, etc. in China. III. A banking regulatory bureau shall select on focus the representative offices of 1~2 foreign-funded financial institutions to carry out an on-the-spot examination before the end of 2004 so as to form a work system of regular examination. As it is comparatively hard to find out through a common examination method the irregularity of engaging in any profit-making business by a representative office, a banking regulatory bureau may, according to the specific circumstances, decide whether or not to adopt an on-the-spot examination method without any advance notice. Before any on-the-spot examination, a careful and deliberate examination scheme shall be formulated and the relevant examiners shall receive necessary trainings and be subject to work division. In case any problem is found in an examination, the relevant banking regulatory bureau shall collect the related evidence in a careful manner. After an on-the-spot examination is concluded, an examination report shall be reported to China Banking Regulatory Commission (CBRC) for archival filing. Where any representative office shall be subject to punishment for its existing problem, the opinion of the CBRC shall be solicited before any punishment. IV. All banking regulatory bureaus shall intensify the research regarding supervisory regulations on representative offices. Aiming at such problems as that the practicability of some supervisory regulations on representative offices are dissatisfactory and that the basis for punishing the relevant irregularity is not clarified, all banking regulatory bureaus shall collect the practical problems in the supervision of representative offices, further study how to improve the relevant supervisory regulations on representative offices and set forth suggestions on supervision for formulating the detailed operating rules for the supervision of representative offices. V. All banking regulatory bureaus shall put forward such requirements that the CEOs of representative offices shall study and master the laws and regulations of China on finance. From an angle of fulfilling relevant work, a CEO shall be familiar with the major laws and regulations on supervision of foreign-funded financial institutions, be obliged to organize other work staff of his office to study the relevant laws and regulations relating to their daily work and shall go further to study the relevant laws and regulations as newly promulgated in a follow-up manner. In order to promote the relevant CEOs to fulfill his work according to the relevant laws and regulations, the banking regulatory bureau of a region with mature conditions shall organize a training of financial laws and regulations for CEOs and shall regard whether or not the relevant CEOs master the relevant laws and regulations on finance as one of the supervisory items in an examination of representative offices. A comprehensive research report on representative offices within the jurisdiction of a banking regulatory bureau shall be reported to the CBRC before the end of 2004. Through this research, a banking regulatory bureau shall establish and improve a supervisory archive of the representative offices and branches of all foreign-funded financial institutions within its jurisdiction, which shall be updated in a timely manner. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|