|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II ESTABLISHMENT, ALTERATION AND TERMINATION CHAPTER III SCOPE OF BUSINESS AND RULES FOR BUSINESS OPERATION CHAPTER IV RISK CONTROL AND SUPERVISION CHAPTER V SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The present Provisions are hereby formulated in accordance with the Insurance Law of the People's Republic of China (hereinafter referred to the Insurance Law) and the Company Law of the People's Republic of China for the purpose of strengthening supervision over the insurance assets management companies, preventing the risk for the use of insurance capital, and protecting the legal rights and interests of the insurance companies and the insurance assets management companies. Article 2. China Insurance Regulatory Commission (hereinafter referred to the "CIRC") shall, upon the authorization of the State Council, make supervision over the insurance assets management companies. Article 3. An insurance assets management company is a financial institution, which is registered according to law upon the approval of the CIRC together with the relevant departments, and manages insurance capital by entrustment. The "insurance capital" shall refer to the various insurance reserves, capital funds, working capital, accumulation funds, undistributed profits and other liabilities of an insurance company, and the various assets formed by the preceding capital. Article 4. Where an insurance company entrusts an insurance assets management company to manage insurance capital, it shall observe the Insurance Law and the relevant provisions of the CIRC, follow the principle of voluntariness, fairness and good faith, and shall not do harm to the national interests and public interests. Article 5. Where an insurance assets management company manages insurance capital, it shall abide by the Insurance Law and the relevant Provisions of the CIRC, and perform duties of good faith, and due diligence. CHAPTER II ESTABLISHMENT, ALTERATION AND TERMINATION Article 6. The establishment of an insurance assets management company shall be approved by the CIRC together with the relevant departments. Article 7. An insurance assets management company shall take the following forms of organization: (1) Limited liability company; or (2) Joint-stock limited company. Article 8. There shall be at least one shareholder or promoter to be the insurance company or insurance shareholding (group) company when establishing an insurance assets management company, and the said insurance company or insurance shareholding (group) company shall meet the following conditions: (1) Undertaking the insurance business for over 8 years; (2) Having no record of administrative punishment for violation of the provisions on capital arrangement in the past three years; (3) The net assets are no less than RMB one billion Yuan; the total assets are no less than RMB 5 billion Yuan, while the total assets of the insurance shareholding (group) company and the insurance company that have life insurance business shall be no less than RMB 10 billion Yuan; (4) Meeting the requirements for the solvency prescribed by the CIRC; (5) Having perfect corporate governance structure and internal control system; (6) Having established the corresponding departments for assets and liability management and risk control department, and having perfect investment information management system; (7) The proportion of assets used and managed in a centralized way by the departments of capital arrangement shall be no less than 50% of the total assets of the company, of which such proportion of an insurance company that has life insurance business shall be no less than 80% of the total assets of the company; and (8) Other conditions prescribed by the CIRC. Article 9. The total share of insurance assets management companies held by a domestic insurance company shall be no less than 75%. The "domestic insurance company" mentioned in the preceding paragraph shall refer to the insurance company or insurance shareholding (group) company with legal person status, which is approved by the CIRC and registered according to law. Article 10. The minimum registered capital of an insurance assets management company shall be RMB 30 million Yuan or the convertible currency in equivalence; and the registered capital shall be the paid-in money capital. The registered capital of an insurance assets management company shall be no less than one thousandth of the insurance capital managed by it by entrustment, if it is less than one thousandth, a sum of capital fund shall be added accordingly. But no more capital funds may be added if its registered capital has reached RMB 5 hundred million Yuan. Article 11. When establishing an insurance assets management company, an applicant shall file a written application to the CIRC and submit the following documents: (1) Application letter for the establishment; (2) Feasibility study report and plans of preparation for the establishment of the planned company; (3) Basic information of shareholders, including the name or title of shareholders, legal representative, forms of organization, registered capital, business scope, qualification certificate documents and the balance sheet and statements of profits and losses in the last year, which are audited by the accountant firms; (4) The certificate documents of the shareholders who meet the conditions prescribed in Article 8 of the present Measures and the balance sheet and statements of profits and losses in the past three years, which are audited by the accountant firms; (5) Name list and resume of the person responsible for preparation of the establishment of the planned company; (6) Letter of investment intent of the contributors or the share subscription agreement; and (7) Other documents prescribed by the CIRC. Article 12. The CIRC shall, together with the relevant departments of the State Council, make preliminary examination on the application for establishment of insurance assets management companies, and make decisions on whether to approve the preparation for the establishment or not within 3 months from the date of receiving the complete set of application documents. If it determines not to grant approval, it shall notify the applicant in writing and explain the reason. Article 13. The applicants shall complete the preparatory work for the establishment within 6 months from the date of receiving the documents of approval of the CIRC for the preparation. If they fail to complete the preparatory work for the establishment within the prescribed time limit, they may apply for extending the time limit for the preparatory work for 3 months upon the approval of the CIRC. If they still fail to complete the preparatory work for the establishment at the expiry of the term, the original documents of approval for the preparation shall be invalidated automatically. No organs for the preparation of establishment may undertake any business activity during the preparation for the establishment. Article 14. After completing the preparatory work for the establishment, the applicant shall file an application for starting business to the CIRC, and submit the following documents: (1) Report on application for starting business; (2) Certificate of capital verification issued by the legal capital verification institutions, photocopy of the certificate on entering of capital funds into an account; (3) Name list and resumes of the senior management personnel and the main practitioners; (4) Certificate documents of the ownership or use right of the place of business; (5) Articles of association of the company and the internal management systems; (6) Documents concerning the information management system, equipment for transaction of capital arrangement, and the safety precautions and establishments; and (7) Other documents prescribed by the CIRC. Article 15. The CIRC shall, within 20 days from the date of receiving the complete set of business-starting application documents for the establishment of the insurance assets management company, make decisions on whether to approve it or not. If it decides to grant approval, it shall issue the License on Undertaking Insurance Assets Management Business; if it does not approve it, it shall notify the applicant in writing and explain the reason. Article 16. Where an insurance assets management company establishes branches, it shall file an application to the CIRC and submit the following documents: (1) Application letter for the establishment; (2) Business scope of the planned institutions; (3) Business plans and market analysis of the planned institutions in the coming 3 years; (4) The resumes of the persons responsible for the preparation of the establishment of the planned institutions and the relevant certificate documents; and (5) Documents concerning information management system, equipment for the transaction of capital arrangement, and the safety precautions and establishments. Article 17. The CIRC shall make preliminary examination on the application for the establishment of branches of insurance assets management companies, and make decisions on whether to approve the preparation for the establishment or not within 20 days after receiving the whole application documents. If it decides not to grant approval, it shall notify the insurance assets management companies in writing and explain the reason. Article 18. An insurance assets management company shall complete the preparatory work for the establishment of branches within 3 months from the date of receiving the documents of approval of the CIRC for the preparatory work for establishment of branches. If it fails to complete the preparatory work within the prescribed time limit, the original documents of approval for the preparation shall be invalidated automatically. No organs for the preparation of establishment may undertake any business activity during the preparation for the establishment. Article 19. After completing the preparatory work for the establishment of branches, an insurance assets management company shall file an application for starting business to the CIRC and submit the following documents: (1) Application letter for starting business; (2) Report on completion of the preparatory work for the establishment; (3) Scope of business operation; (4) Resumes of the persons responsible for the planned institutions and the relevant certificate documents; (5) Certificate documents of the use right or ownership of the place of business; (6) Documents concerning information management system, equipment for the transaction of capital arrangement, and the safety precautions and establishments; and (7) Establishment of internal organizations and the information on the practitioners. Article 20. The CIRC shall, within 20 days from the date of receiving the complete set of business-starting application documents for the above-mentioned branches, make decisions on whether to approve it or not. If it decides to approve it, it shall issue the License on Undertaking Insurance Assets Management Business; if it decides not to grant approval, it shall notify the applicant in writing and explain the reason. Article 21. The insurance assets management companies and branches thereof, which start business upon approval, shall, go through registration formalities at the administrative departments for industry and commerce upon the strength of the approval documents and the License on Undertaking Insurance Assets Management Business, and may make business operation after receiving the business license. Article 22. The CIRC shall design, publish, issue, withhold, write off or revoke the License on Undertaking Insurance Assets Management Business uniformly. No other entity or individual may design, publish, issue, withhold, or revoke the License on Undertaking Insurance Assets Management Business. Article 23. The senior management personnel of the insurance assets management company shall meet the following conditions: (1) Having an undergraduate education background or above; (2) Having the experience of engaging in economic work for over 10 years or having the experience of practicing in finance, insurance, and securities for over 5 years; (3) Having no records of any criminal punishment or any administrative punishment for undertaking economic activities; and (4) Other conditions prescribed by the CIRC. The senior management personnel of an insurance assets management company shall not hold a part-time position in other profit-making business institutions, except when there are otherwise provisions by the CIRC. Article 24. In case an insurance assets management company has any of the following circumstances, it shall report to the CIRC for approval: (1) Alteration of articles of association of the company; (2) Alteration of the contributors or the shareholders with over 10% of the shares of the company; (3) Adjustment of business scope; (4) Withdrawing of branches; (5) Alteration of business places; or (6) Alteration of senior management personnel. Article 25. In case an insurance assets management company dissolves or is revoked according to law, or terminates due to adjudication of bankruptcy, the insurance capital it manages by entrustment shall not fall within the liquidation property. Article 26. In case an insurance assets management company dissolves according to law, it shall set up a liquidation group. And the liquidation work shall be done under the supervision and guidance of the CIRC. Where an insurance assets management company is revoked according to law, the CIRC shall organize the shareholders, the relevant departments and the relevant professionals to set up a liquidation group in time. Where an insurance assets management company is adjudicated bankruptcy according to law, the people's courts shall organize the liquidation group according to law. Article 27. The liquidation group shall notify the creditors within 10 days after its establishment, and shall make a public announcement at least 3 times within 60 days on the newspapers designated by the CIRC. The contents of the public announcement shall be approved by the CIRC. The liquidation group shall entrust the account firms with good credit standing and other professional intermediary institutions to make appraisal on the creditor's rights and debts and assets of the company. Article 28. In case an insurance assets management company dissolves, is revoked according to law or adjudicated bankruptcy, its property liquidation, handling of creditor's rights and debts shall be carried out in accordance with the provisions of relevant laws and regulations. CHAPTER III SCOPE OF BUSINESS AND RULES FOR BUSINESS OPERATION Article 29. The business scope of an insurance assets management company shall include all or some of the following businesses: (1) Managing and arranging the RMB or foreign currency insurance capital of its shareholders by entrustment; (2) Managing and arranging by entrustment the capital of the insurance company controlled by its shareholders; (3) Managing and arranging the self-owned RMB and foreign currency capital; (4) Other business approved by the CIRC; (5) Business approved by other departments of the State Council. Article 30. The management and arrangement of insurance capital are limited to bank deposit, buying and selling of government bonds, financial bonds and other forms of capital arrangement prescribed by the State Council. Article 31. Where an insurance assets management company carries out the business of using foreign exchange capital and other foreign exchange business, it shall be approved by the department of foreign exchange control of the state. Article 32. The proportion of the total investment of the self-owned capital and capital managed by entrustment of an insurance assets management company in the same investment channel and the proportion of investment of a single investment object shall be accounted respectively. The proportion of the total investment of the capital of an insurance company used by others upon its entrustment and the capital managed and arranged by itself in the same investment channel and the proportion of investment of a single investment object shall be accounted in a consolidated way. Article 33. An insurance company and the insurance assets management company entrusted by it shall stipulate an independent trustee. The trustee shall be a commercial bank or other professional financial institutions meeting the requirements of the CIRC. Article 34. Where an insurance assets management company manages the following funds, it shall assign different investment management personnel to manage the funds respectively and keep accounts for them respectively: (1) Self-owned insurance capital and insurance capital managed by entrustment; or (2) Different kinds of insurance capital of the same insurance company, which is managed by entrustment. An insurance assets management company shall fairly treat the different insurance capitals it manages. Article 35. Properties obtained by an insurance assets management company due to management and use or handling of insurance capital or other circumstances, shall be brought into the insurance capital. In addition to obtaining remunerations according to the stipulations of the contract, where an insurance assets management company seeks for private interests by using the insurance capital it manages by entrustment, the interests gained shall be brought into the insurance capital it manages by entrustment. Article 36. Where an insurance assets management company manages or arranges insurance capital by entrustment, or a trustee manages insurance capital by entrustment, written contracts shall be concluded. The CIRC shall formulate the guidance for the contents and format of the written contract additionally. Article 37. Where an insurance assets management company obtains assets management fees stipulated in the contract, it shall report to the CIRC the conditions concerning the collection of assets management fees. The rate of assets management fees shall be determined according to the principle of fairness and reasonableness. The CIRC may formulate the standards for the rate of insurance assets management fees. Article 38. No insurance assets management company may have any of the following acts: (1) Providing guarantee; (2) Promising that the capital it manages by entrustment will not suffer any loss or ensuring the minimum benefits; (3) Transferring the entrustment on the management of insurance capital it has to others; (4) Seeking interests for the third party other than the clients by using the entrusted insurance capital; (5) Making mutual transactions on capital arrangement with shareholders or the insurance company, which entrusts it to manage and use the insurance capital, or through manipulating the entrusted capital from different resources; (6) Colluding with the clients to obtain illegal interests in the name of assets management fees or by other means; (7) Other acts prohibited by the relevant state laws, regulations or by the supervisory departments. Article 39. Where an insurance assets management company violates the relevant state provisions or the stipulations of contract, which leads to the loss of insurance capital, the insurance assets management company shall compensate for the losses, and shall not get the remunerations before making compensation for the losses. Article 40. The complete set of records on the business of management and arrangement of insurance capital by an insurance assets management company and the text of contract on the arrangement of insurance capital by entrustment shall be kept for over 15 years. Article 41. An insurance assets management company shall report the conditions regarding the management and arrangement, handling, and income and expenses of the insurance capital by entrustment periodically or according to the stipulations of the contract. The clients shall have the right to consult, copy down or reproduce the accounts and other documents in relation to the insurance capital they entrust, and shall have the right to require the trustee to give explanations. Article 42. The year-end financial statements of an insurance assets management company on its self-owned capital and insurance capital managed by entrustment shall be audited by an accountant firm. Article 43. The insurance companies and the trustees of insurance capital shall have the duty to keep confidential the clients and the conditions concerning the use of insurance capital and the relevant documents. Article 44. An insurance assets management company shall not set off the debts arising from the self-owned property of the insurance assets management company with the creditor's rights arising from its management and arrangement or handling of the entrusted capital as a trustee. An insurance assets management company shall not set off the creditor's rights and debts arising from its management and arrangement or handling of the property of different clients as a trustee. Where an insurance assets management company has any civil disputes with other public organizations or individuals, it shall not use the insurance capital it manages by entrustment for seizure, freezing, or compensation, etc.. CHAPTER IV RISK CONTROL AND SUPERVISION Article 45. An insurance assets management company shall establish perfect corporate governance structure and effective internal control system, establish investment decision-making departments and risk control departments, and establish restriction mechanism for mutual supervision. Article 46. An insurance assets management company shall strengthen information construction, establish perfect information management system for investment decision-making, capital arrangement and financial accounting. An insurance assets management company shall have the safeguard measures relating to the business operation. Article 47. An insurance assets management company shall establish the supervisory board according to the relevant provisions. The clients may accredit supervisors to the insurance assets management company, which is entrusted to manage the insurance capital. The supervisors shall supervise the performance of contract of the insurance assets management company on behalf of the clients, but shall not interfere in the ordinary operation of the insurance assets management company. Article 48. An insurance assets management company shall have the right to attend the relevant meeting of the department for assets and liability management of the insurance company as a non-voting delegate. Article 49. An insurance assets management company shall, within 20 days from the date of signing the contract on management of insurance capital by entrustment and the entrustment contract, submit the photocopy of the contracts to the CIRC. Article 50. An insurance assets management company shall submit the balance sheet, statement of profits and losses, business statistics, financial analysis report and the relevant statements and other documents in accordance with the provisions of the CIRC. The contents and format of the statements submitted by the insurance assets management companies shall be issued by the CIRC separately. Article 51. The CIRC shall make supervision over and inspection on the insurance assets management companies by ways of on-site supervision in combination with the supervision not on the site. The CIRC may entrust the accountant firms and other professional intermediary institutions to make inspection on the insurance assets management companies. Article 52. In case an insurance company or insurance assets management company violates the present Provisions and the relevant laws and regulations, the CIRC shall impose an administrative punishment on the insurance company, insurance assets management company and the senior management personnel and the person directly liable in accordance with the Insurance Law and the relevant administrative regulations. CHAPTER V SUPPLEMENTARY PROVISIONS Article 53. The present Provisions shall come into force of June 1, 2004. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|