China News Service, March 29. According to news from the State Administration of Financial Supervision and Administration’s website on the 29th, the State Administration of Financial Supervision and Administration released the 2023 annual report on the construction of a rule of law government. The report pointed out that the deterrence of regulatory enforcement should be improved. Focus on "key matters" that affect financial stability, "key people" that cause major financial risks, and "key behaviors" that disrupt market order, and continue to increase penalties. Severely punish illegal shareholders and actual controllers, and severely crack down on malicious manipulation, evading funds, hollowing out institutions and other behaviors. Strictly implement the double-penalty system, increase the intensity of punishment for senior executives, and resolutely crack down on self-stealing, internal and external collusion, and benefit transfer. In 2023, 4,750 banking and insurance institutions were punished, 8,552 responsible persons were punished, and a total of 7.838 billion yuan was fined and confiscated.
The full text is as follows:
State Financial Supervision and Administration Bureau’s 2023 Annual Report on the Construction of a Rule-of-Law Government
In 2023, under the correct leadership of the Party Central Committee and the State Council, the State Administration of Financial Supervision will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, conscientiously implement the spirit of the 20th National Congress of the Party, and fully implement all the decisions of the Central Financial Work Conference and the Central Economic Work Conference. Decision-making and deployment, continue to strengthen the construction of the financial rule of law, better play the role of the rule of law in consolidating the foundation, stabilizing expectations, and benefiting the long-term, and safeguarding the development of the financial industry. The relevant situation is now reported as follows:
1. In-depth study and implementation of Xi Jinping’s Thought on the Rule of Law and focus on building a rule-of-law government
(1) Thoroughly implement the spirit of the Central Financial Work Conference and the Central Economic Work Conference. Consciously regard General Secretary Xi Jinping’s important expositions and speeches on financial work as the fundamental compliance and action guide for financial supervision. Implement the requirements of the party and state's institutional reform plan, successfully complete the establishment of the General Administration of Financial Supervision and the listing of provincial and municipal offices, further rationalize the regulatory system and mechanisms, and comprehensively strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision. We will thoroughly implement the spirit of the Central Financial Work Conference and the Central Economic Work Conference, focus on various requirements for building a financial power, comprehensively strengthen financial supervision, prevent and resolve financial risks, and promote high-quality financial development. A special seminar and regulatory work symposium were held to study and implement the spirit of the Central Financial Work Conference, and organized all units in the General Administration system to quickly set off an upsurge in learning, publicity, and implementation, and deepened the understanding of the path of financial development with Chinese characteristics, building a financial power, and financial supervision with Chinese characteristics. System, awareness of preventing and defusing financial risks, firmly guarding the bottom line of no systemic financial risks, and providing more powerful financial support for China's modernization drive.
(2) Persist in arming the mind with Xi Jinping’s thought on the rule of law to guide practice and promote work. Make the study and publicity of Xi Jinping’s thoughts on the rule of law the primary political task of building the rule of law in financial supervision, and incorporate it into the party committee’s central group study, cadre training, and party member study plans. Select and mobilize cadres to participate in the special seminars on "Adhering to Xi Jinping's Thought on the Rule of Law and Accelerating the Construction of the Rule of Law in China", "Adhering to the Comprehensive Rule of Law and Advancing the Construction of the Rule of Law in China" and "Learning and Implementing Xi Jinping's Thought on the Rule of Law" to promote the study of Xi Jinping's Thought on the Rule of Law. . Adhere to the guidance of Xi Jinping Thought on the Rule of Law, focus on the implementation of "One Plan and Two Outlines", solidly carry out mid-term evaluation work, and timely summarize experiences and consolidate results. Promote the implementation of the "Eighth Five-Year Plan for Legal Publicity and Education in the National Banking and Insurance Industry (2021-2025)" and the "Implementation Plan for the Construction of the National Rule of Law in the Banking and Insurance Industry" to effectively improve the level of legalization of financial supervision.
2. Continuously improve the legal system of financial supervision
(1) Lay a solid foundation and actively promote financial legislation. A scientific and complete legal system is the premise and foundation for legal supervision. Efforts will be made to promote the formulation and revision of basic and comprehensive laws in the financial field to achieve substantial progress, further strengthen penetrating supervision, improve risk disposal mechanisms, increase the cost of violating the law, and promptly eliminate gaps and blind spots in the legal system. Cooperate with the National People's Congress and the Ministry of Justice to promote the revision of important financial laws, further improve the financial regulatory legal system, and consolidate legal protection for the continued standardized operation of the financial industry.
(2) Focus on key points to make up for the shortcomings of the regulatory system. Strengthen the overall planning of the regulatory system, formulate a plan to make up for shortcomings in 2023, and issue 6 departmental regulations and 18 normative documents to lay a solid legal foundation for the high-quality development of the financial industry. The "Capital Management Measures for Commercial Banks" and "Operational Risk Management Measures for Banking and Insurance Institutions" were released to promote banking and insurance institutions to strengthen their risk management levels. The "Measures for the Classification of Financial Asset Risks of Commercial Banks" were promulgated to promote banks to truly reflect their credit levels. Formulate management measures for insurance sales behavior and unify supervision requirements for insurance sales behavior. Optimize the solvency supervision standards of insurance companies and further release the development dividends of the insurance industry.
(3) Improve quality and efficiency and optimize the legislative working mechanism. We will always implement democratic and scientific legislation throughout the entire process, and repeatedly listen to the opinions and suggestions of financial institutions, industry associations, experts and scholars. Adhere to a problem-oriented approach and continue to improve the refinement and scientific level of legislation. We attach great importance to investigation and research, and carry out special investigations around the credit management system, non-performing loan transfer pilots, and the insurance industry's main business focus, conduct in-depth grassroots on-site discussions, and visit banking and insurance institutions to propose practical and effective countermeasures, and many results have been transformed and applied.
3. Actively promote high-quality development of the industry
(1) Continue to optimize the business environment. Improve the pre-establishment national treatment plus negative list management model to attract more foreign financial institutions and long-term capital to invest in China. Revise and improve the implementation measures for administrative licensing, further relax the access conditions for foreign institutions to invest in financial asset management companies, cancel the approval of non-capital bonds issued by non-bank institutions, and the qualification approval of the heads of financial departments and internal audit departments of financial asset management companies, and change the In order to implement an after-the-fact reporting system, we will continue to increase the level of streamlining administration and delegating power. Modify the catalog and format requirements for application materials for administrative licensing matters, further streamline application materials, and reduce the burden of filing applications for administrative counterparts.
(2) Treat both the symptoms and root causes to prevent and resolve risks. Adhere to the principle of marketization and rule of law, accelerate the reform of small and medium-sized financial institutions and strengthen guidance and coordination, and promote the formulation of risk disposal plans of "one province, one policy", "one bank, one policy" and "one company, one policy", and some high-risk financial institutions have achieved results in disposal substantial progress. Promote insurance companies to lower the predetermined interest rates of life insurance products, effectively prevent the risk of interest rate losses, strengthen the "integration of insurance products with banks", and promote insurance companies to return to their roots and highlight their protection functions. Standardize the classification of trust business, seriously rectify chaos in the financial leasing business, promote the characteristic and professional development of consumer finance companies, automobile finance companies, etc., and promote non-bank institutions to focus on their main businesses.
(3) Guide financial institutions to serve the real economy. Further improve the inclusive credit system, reduce comprehensive financing costs, optimize credit investment, and promote the sustainable development of small and micro enterprises and agricultural-related enterprises. We will solidly carry out the enterprise-friendly action of "locating tens of thousands of enterprises, increasing confidence, and providing excellent services" to increase financial support for small, medium and micro enterprises in key areas such as technological innovation and foreign trade. Promote the normal operation of exclusive commercial pension insurance and launch commercial pension pilots for pension insurance companies. The accumulated pension scale has exceeded 6 trillion yuan, covering nearly 100 million people. Launch a pilot program for switching liability between life insurance and long-term care insurance. Approved the opening of a number of foreign-funded institutions such as Agricultural Bank of China Financial Management.
4. Continue to promote strict and standardized law enforcement
(1) Improve the deterrent effect of regulatory enforcement. Focus on "key matters" that affect financial stability, "key people" that cause major financial risks, and "key behaviors" that disrupt market order, and continue to increase penalties. Severely punish illegal shareholders and actual controllers, and severely crack down on malicious manipulation, evading funds, hollowing out institutions and other behaviors. Strictly implement the double-penalty system, increase the intensity of punishment for senior executives, and resolutely crack down on self-stealing, internal and external collusion, and benefit transfer. In 2023, 4,750 banking and insurance institutions were punished, 8,552 responsible persons were punished, and a total of 7.838 billion yuan was fined and confiscated.
(2) Effectively improve the effectiveness of supervision. Establish a scientific and standardized mechanism for selecting on-site inspection objects, intensify inspections of key institutions and high-risk areas, reduce the frequency of inspections of institutions with consistently good risk ratings, and improve the accuracy, professionalism and effectiveness of on-site inspections. Use the escalation cross-inspection method to enhance the effect of on-site inspections and identify outstanding risks in some small and medium-sized financial institutions. Improve the forward-looking nature of financial risk monitoring and analysis, and enable early identification, early warning, early exposure, and early disposal of risks. Vigorously promote the research and development of intelligent analysis tools, enrich the toolbox of penetrating supervision and behavioral supervision, and improve the ability to penetrate and identify hidden shareholders, corporate affiliations and other fields.
(3) Strengthen standardized law enforcement supervision. Strengthen administrative supervision and strictly correct specific illegal administrative behaviors through administrative reconsideration. Accept social supervision, hold a symposium on the disclosure of work based on application, and conduct disclosure work research. Throughout the year, the State Administration of Financial Supervision published more than 2,200 pieces of information on its official website and official WeChat account, and received and processed 1,579 applications for government information disclosure. Accept judicial supervision and conscientiously respond to administrative litigation cases.
5. Efforts to strengthen financial consumer protection
(1) The crackdown on illegal financial activities has achieved remarkable results. We have vigorously cracked down on illegal financial activities such as illegal fund-raising, and a number of major cases have been investigated and dealt with. The rate of settlement of cases over 100 million yuan has increased significantly. The "one network" for illegal fund-raising monitoring has effectively played its role, and more than 1,200 risk entities of various types were warned throughout the year. The governance of illegal resource gathering has been advanced in an orderly manner, and the "Keep Your Money Bag, Protect Your Happy Home" anti-illegal publicity month brand has continued to launch, with more than 1 million various activities organized and carried out, covering more than 220 million people.
(2) The "big consumer protection" work pattern is gradually implemented. Actively communicate with the People's Bank of China and the China Securities Regulatory Commission to promote the establishment of a coordination mechanism for the protection of financial consumer rights and interests, clarify the division of responsibilities, and establish collaboration mechanisms for information sharing, public education, and appropriateness management. The consumer complaint and rights protection hotline has been expanded, and the complaint channels have been greatly opened up. We will strengthen complaint supervision around issues such as insurance surrenders, credit card complaints, car insurance claims, and early repayment of personal housing loans, which have received strong public feedback and attracted high social attention. Organize and carry out special actions of "doing practical things for the people", special work of cleaning up "sleeping policies" in personal insurance, and special work of reminding and reminding banks of "sleeping accounts" to handle "key little things" that the masses can know and feel.
(3) Solidly promote the diversified resolution of consumer disputes. Always keep in mind the important instructions of General Secretary Xi Jinping to “insist on keeping the non-litigation dispute resolution mechanism at the forefront”, adhere to and develop the “Maple Bridge Experience” in the new era in the financial field, continue to promote the expansion and quality of offline mediation services, and simultaneously strengthen online We will increase our efforts in dispute mediation and continuously improve the financial dispute mediation mechanism that is professional, efficient, convenient and beneficial to the people. In 2023, 316,500 cases were mediated throughout the year, helping financial consumers realize economic benefits of 36.369 billion yuan, and promoting the timely and proper resolution of conflicts and disputes on the spot.
6. Efforts to improve the construction and guarantee of the rule of law
(1) Strengthen regulatory technology empowerment. Comprehensively upgrade the bank's "Ruisi" risk warning system and continuously improve regulatory tools and means. Promote the digital re-engineering of regulatory processes, enhance the standardization and transparency of key regulatory activities, and improve regulatory efficiency. We will further promote the construction of big data for supervision and consolidate the data foundation of the “five major supervisions”. Build a smart supervision platform and create a core technology carrier for digital supervision. Strengthen the construction of digital supervision human resources and create a professional data analysis team and digital supervision talent team. We will continue to optimize the experience of using the “Internet + Government Services” platform of the State Administration of Financial Supervision and continue to promote the application of electronic certificates.
(2) The publicity and education of the rule of law should be unremittingly carried out. Coordinate and organize the industry's centralized education and publicity activities, organize and carry out the "3·15" Consumer Rights Protection Education and Publicity Week activities and the "Gathering Financial Power to Create a Better Life" Financial Consumer Rights Protection Education and Publicity Month activities, and carry out online and offline education in total More than 940,000 promotional activities were held. Strengthen the issuance of consumer risk warnings and publish 5 risk warnings to promptly reveal to consumers fraud methods such as using housing for retirement, falsely using the name of financial supervision, and false online investment and financial management to increase awareness of financial risk prevention.
(3) Rule of law capacity building has been steadily improved. Focusing on "building a financial regulatory system with Chinese characteristics" and implementing the "five major regulatory tasks", we organized and implemented a project to improve the professional capabilities of the cadre team. We hold supervisory policy lectures, carry out special training on rule of law content, and use rule of law education-related content as the key points of main course training such as initial training to continuously enhance rule of law thinking and improve the ability and level of administration according to law.
Looking back on the past year, although the State Administration of Financial Supervision has achieved certain results in building a legal government, there are still some shortcomings and weak links, mainly reflected in: some laws and regulations lag behind the practice of financial reform and development, and the revision of laws needs to be accelerated; tools for financial supervision and means are still relatively limited, and the foresight, accuracy, effectiveness and coordination of supervision need to be improved; the newly revised Administrative Review Law has significantly increased the number of pre-review cases, making law enforcement supervision more difficult and facing some new challenges.
2024 marks the 75th anniversary of the founding of the People's Republic of China. It is a critical year for achieving the goals and tasks of the "14th Five-Year Plan" and is also the first full year for the State Administration of Financial Supervision to fully perform its duties. The State Administration of Financial Supervision will unite more closely around the Party Central Committee with Comrade Xi Jinping as the core, deeply understand the decisive significance of the "two establishments", strengthen the "four consciousnesses", strengthen the "four self-confidences", and achieve the "two safeguards" ", deeply study and implement Xi Jinping's thought on the rule of law, adhere to the political and people-oriented nature of financial work, continue to promote the construction of the financial rule of law, effectively solve the outstanding problems that restrict the construction of a rule of law government, and continue to comprehensively strengthen financial supervision, prevent and resolve financial risks, and promote financial high Quality development consolidates legal protection and strives to create a new situation in the legal work of financial supervision.