China News Service, Beijing, July 30 (Reporter Wang Enbo) The China Banking and Insurance Regulatory Commission issued a document on the 30th to clean up and regulate the business of trust companies' non-financial subsidiaries. Trust companies are strictly prohibited from adding domestic first-level non-financial subsidiaries.
According to the official, this move aims to control the market chaos of trust companies' non-financial subsidiaries, prevent and defuse financial risks, and promote the return of trust companies to their roots and transformation and development.
In recent years, some trust companies have directly or indirectly established domestic tier-one non-financial subsidiaries engaged in private equity investment and other businesses with their inherent assets.
Such companies have played a positive role in serving the real economy and strengthening strategic coordination with the parent company. However, due to relatively weak operation and management and relatively weak awareness of compliance, some companies have also caused market chaos in the process of business development. Risk.
According to the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission, relevant risks include the development of regulatory arbitrage and hidden risk channel business; the existence of illegal related transactions such as raising funds, transferring property, and transferring interests with the parent company, and so on.
Based on this, the "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Cleaning up and Regulating the Business of Non-financial Subsidiaries of Trust Companies" was announced on the 30th. From the perspective of reducing hierarchy and standardizing business, it will rectify and regulate non-financial subsidiaries of trust companies and control market chaos.
The "Notice" takes "compressing levels and standardizing business" as the main idea, rectifies and regulates domestic first-tier non-financial subsidiaries of trust companies, and clarifies the work arrangements for clean-up and standardization.
Since the date of the issuance of the "Notice", trust companies are strictly prohibited from adding new domestic first-level non-financial subsidiaries, and established domestic first-level non-financial subsidiaries shall not increase investment in domestic and foreign enterprises.
It is understood that the trust company’s investments in the following companies fall within the scope of the “Notice” for liquidation: one is the domestic and foreign investment in domestic and foreign tier-one non-financial subsidiaries that the trust company chooses to retain in accordance with the “notice”; the second is the rest of the trust company Domestic tier-one non-financial subsidiaries and their domestic and overseas investment enterprises.
The trust company’s investment in the above-mentioned enterprises shall be liquidated through the transfer of equity, and the liquidation period shall not exceed 3 years.
If the above-mentioned enterprises have existing fund business, the trust company may not be subject to the aforementioned time limit, but it shall complete the investment liquidation within one year after the liquidation of the relevant project.
If the liquidation is really difficult, the trust company may submit a report on the extension of the liquidation period to the local Banking and Insurance Regulatory Bureau once, and the extension shall not exceed one year.
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