China Banking and Insurance Regulatory Commission strengthens fund trust management requirements to return to the source

  China News Agency, Beijing, May 8 (Reporter Wang Enbo) China Banking and Insurance Regulatory Commission publicly solicited opinions from the public on the "Interim Measures for the Management of Trust Funds of Trust Companies (Draft for Comment)" on the 8th. Officials say it will use this to promote the return of fund trusts to the origin of private equity management products that "sellers are responsible and buyers are at their own risk."

  Fund trust is an asset management product based on trust relationship, and has long played a role of gathering social funds in the market economy to invest in the real economy in the national economic cycle. As of the end of 2019, the trust assets managed by 68 trust companies in China totaled 21.6 trillion yuan (RMB, the same below), of which the trust assets of funds managed totaled 17.94 trillion yuan.

  In recent years, due to changes in the internal and external environment, fund trusts have emerged to facilitate regulatory arbitrage by other financial institutions, due to improper due diligence management, resulting in payment pressures, multi-level nesting of irregularities, and inconsistent regulatory rules for similar asset management businesses.

  The person in charge of the relevant department of the China Banking Regulatory Commission introduced that the primary principle followed in the formulation of the "Measures" is to adhere to the positioning of private placement. Treasury trust is the private equity management business of buyers. Any institution or individual participating in any fund trust must identify, manage and bear investment risks according to law. The trust company shall ensure that the risk level of the capital trust matches the risk tolerance level of the investor and break rigid payment.

  The Measures also require trust companies to strengthen fund trust risk management, limit leverage ratios and nesting levels, achieve risk matching and maturity matching, and prevent improper transfer of risks to trust companies or spillover into financial markets.

  It is worth noting that the "Measures" has strengthened the management of non-standard debt assets invested by capital trusts from various aspects.

  For example, limit the proportion of investment in non-standard debt assets, and clarify that the total amount of all collective fund trust investments in non-standard debt assets must not exceed 50% of the total collective fund trust total paid-in trust at any point in time; limit the concentration of non-standard debt rights The total amount of non-standard debt assets of all collective fund trust investments in the same financier and its related parties shall not exceed 30% of the trust company ’s net assets.

  The China Insurance Regulatory Commission said that the promulgation of the “Measures” will help accelerate the development of fund trusts with direct financing characteristics, better serve the people, and play a role in increasing people ’s property income, increasing the proportion of direct financing in the real economy, and reducing financing costs in the real economy. Important role. (Finish)