The "Regulations of Beijing Municipality on Local Financial Supervision and Administration" will be implemented in July
No local financial organization shall be established without approval
Recently, the "Regulations of Beijing Municipality on Local Financial Supervision and Administration" (hereinafter referred to as the "Regulations") were voted and passed at the 30th meeting of the Standing Committee of the 15th Municipal People's Congress, and will come into force on July 1, 2021.
The "Regulations" stipulate that no unit or individual may establish a local financial organization without approval, or engage in or engage in the business activities of a local financial organization in a disguised form.
When providing financial products or services, local financial organizations shall truthfully and fully present risk information, and sign a risk warning letter when necessary.
Huo Xuewen, director of the Beijing Municipal Financial Supervision and Administration Bureau, said that the formulation of the "Regulations" is an important measure to strengthen the construction of the national financial management center, improve the level of legalization of Beijing's local financial system, and strengthen the financial governance system and governance capacity building. The modern financial legal environment is of great significance.
No local financial organization may be established without approval
It is understood that the "Regulations" adhere to the law to regulate the operation of local financial organizations, and clarify that local financial supervision objects are mainly 11 types of local financial organizations authorized by the state, such as small loans, financing guarantees, pawn shops, and crowdfunding institutions. , Implementing access management for the establishment of local financial organizations, setting operating standards, and perfecting the exit mechanism.
The "Regulations" stipulate that no unit or individual may establish a local financial organization without approval, or engage in or engage in the business activities of a local financial organization in a disguised form.
Local financial organizations must not engage in financial business activities beyond their business scope, and must not lease, lend, or in disguise leases or lend financial business business licenses or other approval documents.
Local financial regulatory authorities have the right to take restrictive measures
In order to strictly control local financial risks, the "Regulations" stipulate specific regulatory mechanisms and measures. In terms of financial regulatory measures, local financial regulatory authorities have the right to take measures such as on-site inspections, talks, warnings, announcements, and credit supervision.
In terms of financial risk prevention and treatment, the responsibility of the financial supervision department is to formulate emergency plans and establish a monitoring and early warning platform.
If there are major hidden dangers of financial risks in the business activities of local financial organizations, and the legal rights and interests of financial consumers are seriously damaged, the municipal local financial supervision and management department has the right to take a series of restrictive measures and remind the society of the risks when necessary.
For example, it can be ordered to suspend part of its business, or to restrict its disposal of major assets, etc.
Once a major financial risk has arisen, the relevant departments have the right to seize relevant properties in a timely manner, seal up relevant places and their equipment and facilities, take measures such as freezing the funds involved in the case and restricting the exit of relevant persons involved in the case.
The "Regulations" also specifically proposes the establishment of a "double penalty" system.
Where administrative penalties are imposed on local financial organizations, the legal representatives, directors, supervisors, senior managers and other directly responsible persons may be fined and the illegal income may be confiscated according to the specific circumstances.
If the circumstances are serious, market entry may be banned for a certain period of time.
Do not use false or fraudulent methods to carry out marketing promotion
Regarding the protection of consumer rights and interests, the "Regulations" stipulate that local financial organizations have the obligation to protect the rights and interests of financial consumers, such as property safety, knowledge, independent choice, fair transactions, and information protection.
The "Regulations" require that when providing financial products or services, local financial organizations should understand the risk tolerance of financial consumers, truthfully and fully remind the information that may affect the decision-making of financial consumers, the nature and risks of financial products or financial services, and sign when necessary. Risk warning book.
Do not go beyond the scope of business or use false, fraudulent, concealed, or misleading methods to carry out marketing and publicity.
Text/Reporter Cheng Jie