The China Insurance Regulatory Commission On The Revision Of The Decision Of The Interim Measures For The Management Of Insurance Funds (Amended In 2014)

Original Language Title: 中国保险监督管理委员会关于修改《保险资金运用管理暂行办法》的决定(附2014年修正本)

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201503/20150300398574.shtml

The China insurance regulatory Commission on the revision of the decision of the interim measures for the management of insurance funds (amended in 2014)

(April 4, 2014 2014 of 3rd announcement of China insurance regulatory Commission since May 1, 2014), China insurance regulatory Commission decides on the use of interim measures for the management of insurance funds to the following modifications: 16th section is revised as follows: "insurance group (holding) companies, insurance companies engaged in insurance funds shall comply with the CIRC related requests, specific provisions shall be separately formulated by the Circ.

The CIRC may vary the utilization of insurance funds investment ratio ".

This decision shall take effect on May 1, 2014.

    The use of interim measures for the management of insurance funds corresponding amendments shall be made according to this decision, publish it again.

    Report: the use of interim measures for the management of insurance funds 2014 (revised)

    (2010 9th of July 30, 2010, the China insurance regulatory Commission, released on April 4, 2014 2014 of 3rd announcement of China insurance regulatory Commission, effective as of May 1, 2014, the China insurance regulatory Commission on amendments to the interim measures for the management of insurance funds, the revision of the decision)

    Chapter I General provisions

    First in order to regulate the use of insurance funds Act, prevent insurance funds utilization risks and protect the legitimate rights and interests of the parties, promote sustainable and healthy development of the insurance industry, according to the People's Republic of China insurance (hereinafter referred to as the Insurance Act) and other laws and administrative regulations, these measures are formulated.

    II legally established within the territory of China insurance group (holding) companies, insurance companies engaged in insurance funds governed by these rules.

    Article of insurance funds in these measures refers to the insurance group (holding) companies, insurance companies and foreign currency-denominated capital, reserve fund and undistributed profits, the Reserve Fund and other funds.

    The fourth must be sound management of insurance funds, and follow the principles of safety, meet the solvency requirements, depending on the nature of insurance funds for asset-liability management and risk management, intensive, specialization, standardization and marketization.

    Fifth China insurance regulatory Committee (hereinafter referred to as the China insurance regulatory Commission) shall conduct supervision and management for the utilization of insurance funds activities.

    Chapter II Fund application form

    First funding application

Sixth form of insurance funds are limited to the following:

(A) bank deposits;

(B) the sale of bonds, stocks, shares and other securities by securities investment funds;

(C) investment in immovable property;

(D) the other provisions of the State Council funds application forms.

    Overseas investment of insurance funds, shall conform to the relevant regulatory provisions by the Circ.

Article seventh bank deposits insurance fund, as bank deposits of commercial banks should be selected in accordance with the following criteria:

(A) the capital adequacy ratios, net worth, and provisioning coverage ratio in line with regulatory requirements;

(B) governance norms, internal control system and the good business performance;

(C) found no major violations of the last three years;

    (D) credit rating at investment grade for three years or more.

    Eighth insurance funds investment bonds, credit rating agencies should be approved by the China insurance regulatory Commission, and in accordance with the requirements of the credit levels, including government bonds, financial bonds and corporate (corporate) bonds, nonfinancial business debt financing instruments and in conformity with the provisions of other bonds.

Nineth insurance funds investment stocks, including the public offering and listing for trading of stocks and targeted non-public offering of shares in listed companies.

    Investment companies listed on the GEM stocks and foreign currencies purchase and trading of shares shall be determined separately by the China insurance regulatory Commission.

Tenth investment of insurance funds in securities investment funds, the Fund Manager shall comply with the following conditions:

(A) good corporate governance, with a net worth at more than 100 million Yuan for three consecutive years;

(B) to perform the contract in accordance with law, safeguard the interests of investors, for the past three years without any bad records;

(C) establish an effective securities investment fund and customer-specific firewall mechanisms between the asset management business;

    (D) the investment team is stable, good historical investment performance, assets under management or fund shares are relatively stable. 11th insurance funds investment real property refers to land, buildings and fixtures in the other attached to the land.

    Specific measures shall be formulated by the China insurance regulatory Commission.

    12th insurance funds investment stake, should be established by law and registered in the territory, and are not publicly traded in the stock exchange limited company and limited liability company's stock.

    13th insurance group (holding) company, an insurance company shall not use the reserve purchase real estate or for other enterprise holdings of equity investment. 14th insurance group (holding) company to other enterprises, insurance companies holding equity, should meet the solvency regulation.

Insurance Group (holding) company's insurance subsidiaries do not meet solvency requirements of CIRC, the insurance group (holding) company is not allowed to non-insurance financial business investment.

Achieve the holding of equity investments shall be limited to the following companies:

(A) the insurance company, including insurance companies and insurance asset management institutions as well as insurance agencies, insurance brokerage;

(B) non-insurance financial enterprises;

    (C) insurance-related enterprises.

15th insurance group (holding) companies, insurance companies engaged in insurance funds shall not be any of the following acts:

(A) deposit in non-banking financial institutions;

(B) bought by the Exchange implementation of "special treatment", "warning there is terminating the special processing" shares;

(C) does not have a stable cash flow return on investment expectations or the asset value and high pollution is not in line with State industrial policy projects, such as equity, and real estate;

(D) directly engaged in real estate development and construction;

(E) engaging in venture capital;

(Vi) the utilization of insurance funds of investment assets used to provide guarantees or loans, except for individual policy loan;

(VII) other investment behavior prohibited by the China insurance regulatory Commission.

    The CIRC may in accordance with the relevant provisions of the prohibition on the use of insurance funds for proper adjustment. 16th insurance group (holding) companies, insurance companies engaged in insurance funds shall comply with the CIRC related requests, specific provisions shall be determined separately by the China insurance regulatory Commission.

    The CIRC may vary the utilization of insurance funds investment ratio.

    17th an investment-linked insurance products and unscheduled income is non-life insurance investment funds utilization of insurance products should be in isolation of assets, asset allocation, investment management, staffing, investment and risk control process, independently of the other insurance funds, and the specific measures formulated by the China insurance regulatory Commission.

    Section II financial mode

18th insurance group (holding) company, the insurance company shall, in accordance with the "centralized management and configuration, professional operation" requirements, the implementation of intensive, specialized management of insurance funds.

    Utilization of insurance funds should be centrally managed by the corporate bodies and the branches shall not engage in the use of insurance funds business.

19th insurance group (holding) company, an insurance company shall select an eligible professional institutions, including commercial banks, third party hosting and monitoring of the implementation of the use of insurance funds, and the specific measures formulated by the China insurance regulatory Commission. Managed insured assets independently managed bodies inherent assets, other assets and independently managed bodies managed.

    Trustees dissolved, revoked or is declared bankrupt, liquidated, assets do not belong to assets to be liquidated.

20th a custodian is engaged in insurance funds managed, key responsibilities include:

(A) custody, clearing settlement and valuation of assets of insurance funds;

(B) the supervision of investment;

(C) disclosure of information to interested parties;

(D) shall keep business secrets;

    (E) the provisions of laws and regulations, the China insurance regulatory Commission and other duties stipulated in the contract.

21st managed a custodian is engaged in insurance funds shall not be any of the following acts:

(A) misappropriation of trust funds;

(B) the mixed management of trust funds and own funds or mixed management managed accounts;

(C) the use of managed resources and information or seek illicit advantage;

    (Iv) other illegal activities.

The 22nd insurance group (holding) companies, insurance companies, investment management capability shall conform to the relevant standard stipulated by the Circ.

    Insurance Group (holding) companies, insurance companies, investment management and risk management ability to determine their own investments or insurance assets management institutions entrusted to carry out investments.

23rd insurance group (holding) commissioning insurance asset management investment companies, insurance companies, shall enter into a written contract agreement the rights and obligations of both parties to ensure that principals, Trustees, custodians of the tripartite responsibility independently.

Insurance Group (Holdings), insurance companies should carry out development of strategic asset allocation guidelines, choosing Trustees, supervision of Trustees implementation, assess the performance of such functions.

    Insurance assets management institutions shall implement the principal asset allocation guidelines, according to build portfolios of insurance funds, and fair treatment of different funds.

24th insurance group (holding) commissioning insurance asset management investment companies, insurance companies, and shall not be any of the following acts:

(A) the hamper and interfere with the trustee duties;

(B) require the trustee to provide clients information;

(C) require the trustee to provide a minimum guarantee of return on investment;

(D) illegal transfer of insurance profits;

    (E) other illegal activities.

25th insurance assets management institutions entrusted with the management of insurance funds shall not be any of the following acts:

(A) breach of contract investment;

(B) unfair treatment of different funds;

(C) managing own and entrusted funds or a mixture of different clients of funds;

(Iv) misappropriation of fiduciary funds;

(E) commitment to clients provide a minimum return on investment;

(F) assets of insurance funds and investment security for others;

    (VII) other illegal activities.

26th insurance provisions related to asset managers, according to China insurance regulatory Commission, the scope of the utilization of insurance funds investment as underlying assets, insurance asset management business.

Insurance Group (holding) company, commissioned by the insurance company or insurance asset management investment products, insurance assets management institutions should be according to the contract, timely disclosed to the interested party investment, investment management, trust, risk management and emergency information, and that disclosure of information is true, accurate and complete.

Insurance assets management institutions shall, in accordance with fiduciary assets, asset classes, risk characteristics of products, investment performance and other factors, according to market principles, by contract with the principal or investment institution, agreed standards and payment management fee revenue.

    Insurance asset management business, refers to the insurance asset managers and managers of the issuer, to the insurance group (holding) companies, insurance companies and insurance asset management companies, with investors selling shares to raise funds, and selected commercial banks and other professional bodies to the custodian and investment management activities for investors.

    Chapter III of decision mechanism

    Section I structure and responsibilities

    27th insurance group (holding) company, the insurance company shall establish a sound corporate governance, incorporation and related systems specified in the general meeting of shareholders, Board of Directors, supervisory board and the management of insurance funds responsibilities, rights to achieve operational decision-making, management of insurance funds, separate right of supervision, checks and balances. 28th Board of Directors responsible for management of insurance funds.

Insurance company Board of Directors shall set forth the asset allocation and investment policy, risk control, ultimate responsibility for the compliance management, perform the following functions:

(A) audited the use of insurance funds management system;

(B) determine the management of insurance funds utilization;

(C) the approved investment decision-making procedure and authorization system;

(D) the approved strategic assets allocation plans, annual investment plan and investment guidelines and the related adjustment programmes;

(E) decide on major investment matters;

(F) approved a new investment strategy and operation of the investment programme;

(VII) establish a fund performance appraisal system;

(VIII) other related duties.

    Board of Directors shall establish the assets and liabilities Management Committee (Investment Committee) and the risk management committee.

    29th insurance group (holding) decided to entrust investment companies, insurance companies, as well as investing in unsecured bonds, stocks, equities and real estate and other major matters of insurance funds shall be subject to review by the Board of Directors.

Article 30th insurance group (holding) company, insurance company management according to the Board of Directors authorized, shall perform the following duties:

(A) is responsible for the day-to-day operation and management of insurance funds;

(B) established the use of insurance funds with the financial, actuarial, product and risk-control departments of the consultative mechanism;

(C) consideration of proposed insurance asset management sector strategic assets allocation plans and asset allocation strategy of the year, and submitted to the Board of Directors of the validation;

(D) the control and management of insurance funds utilization risks;

(E) implementation of asset allocation plan approved by the Board and the annual asset allocation strategies;

(Vi) to revise the programme of strategic asset allocation adjustments;

    (VII) other responsibilities.

31st insurance group (holding) companies, insurance companies should set up specialized insurance asset management, and independent of the financial, actuarial, risk management and other business sectors, carry out the following functions:

(A) elaboration of utilization of insurance funds management system;

(B) formulating strategic assets allocation plans and asset allocation strategy of the year;

(C) development of strategic asset allocation adjustment programmes;

(D) perform annual asset allocation plans;

(E) implementation of risk management measures management of insurance funds;

(Vi) other responsibilities.

    Insurance Group (holding) company, insurance company investments, insurance assets management departments should be responsible for the day-to-day investment management and trading; principal investments, insurance assets management departments shall carry out client responsibilities, duties of supervision and investment behavior and assess investment performance,.

Article 32nd insurance group (holding) company, the asset management of insurance companies should be investing in research, asset liquidation, risk management, performance assessment, related links settings such as security posts, establish a firewall system, professionalization, standardization and proceduralization operation.

    Insurance Group (holding) company, insurance company investments, asset management Department should be investing, trading and investment business directly related to the job.

Article 33rd insurance group (holding) company, risk management departments and departments with the appropriate management functions, shall perform the following duties:

(A) develop risk management of insurance funds-management systems;

(B) legitimate compliance auditing and monitoring the utilization of insurance funds;

(C) the identification, evaluation, tracking, controlling and managing insurance funds utilization risks;

(D) periodic reports of funds risk management situation;

    (E) other responsibilities.

Article 34th insurance assets management institution shall establish the Chief risk management officer.

Chief risk management officer for the company's senior managers, is responsible for organizing and directing insurance asset management enterprise risk management, scope of duties should include the operation of insurance asset management organizations all business segments, independent reports to the Board of Directors, the China insurance regulatory Commission on the situation to prevent and resolve significant risk proposal. Chief risk management officer shall not be for investment management.

    If replacement is required, it should be at least five working days prior to the replacement to the China insurance regulatory Commission give written explanations and their duties.

    Section II Fund application process 35th insurance group (holding) company, an insurance company shall establish and improve the utilization of insurance funds management system and internal control mechanisms, clearly all links and cohesion of related post and operating standards, strict separation of front, middle and back office job responsibilities, periodic inspection and assess the implementation of the system, so clearly the powers and responsibilities, relative independence and mutual checks and balances.

Related systems include, but are not limited to:

(A) asset allocation systems;

(B) investment research, decision-making and authorization system;

(C) the trading and settlement management system;

(D) performance evaluation and examination system;

(V) information management systems;

    (F) risk management system.

    36th insurance group (holding) company, the insurance company should be in a separate legal units, and both inside and outside the market, overall solvency constraint, external environment, risk and regulatory requirements and other factors, analysis of insurance liabilities such as capital costs, cash flow and duration indicator, select Configure with appropriate risk-return characteristics, duration and liquidity of the asset.

    37th insurance group (holding) company analysis, insurance companies should set up specialized platforms, and the use of external research studies cover counterparty variety selection of models and systems of management and investment, construction investment pools, options pools, and ban investment pool system, real time tracking and analysis of changes in the market, for the utilization of insurance funds provide a basis for decision-making.

    Article 38th insurance group (holding) company, the insurance company shall establish a sound relatively centralized and hierarchical management, powers and responsibilities of the company's investment decision and authorization system, explicit authorization, permission, standards, procedures, and responsibilities of limitation, progressive and check authorization and accountability. 39th insurance group (holding) companies, insurance companies and improve the fair trade mechanisms should be established, effective control of the relevant personnel to operational risk and moral hazard, prevention system technology security oversight, ensure compliance, fairness and effectiveness.

Fair trade mechanisms should include at least the following:

(A) the implementation of centralized trading system, strictly segregated investment decision and execution of transactions;

(B) built in conformity with the relevant requirements of centralized transaction monitoring systems, early warning systems and feedback systems;

(C) establish sound transaction systems;

    (D) in account settings, research support, resource allocation, personnel management and other areas equal treatment of different funds, and so on.

    40th insurance group (holding) companies, insurance companies should be established based on the asset and liability management performance evaluation system and evaluation criterion, regularly carry out performance measurement and attribution analysis on management of insurance funds, and promoting long-term investing, value investing and diversification, realize the utilization of insurance funds overall objectives.

41st insurance group (holding) company, an insurance company shall establish information management system for insurance funds utilization, reducing or eliminating the manipulation factor, automatic identification, early warning reporting and asset management risk management control to ensure real-time understanding of risk.

Information management system should be set up compliance and risk metrics thresholds, risk monitoring elements intrinsic to information technology systems, reduce operational risks, prevent moral hazard.

    Comprehensive risk management database information management system should be established to collect and integrate market data, raw data management of insurance funds and investment transactions are recorded to ensure shared information platform.

    The fourth chapter risk control

    42nd insurance group (holding) company, an insurance company shall establish full coverage, full control, full participation of insurance funds utilization risks management system and operation mechanism, improved risk management techniques and information technology systems, by means of management systems and Audit audit, classification, identification, quantification and assessment of various types of risks, prevention and risk mitigation.

    Article 43rd insurance group (holding) company, an insurance company shall manage and control asset-liability mismatch risk, based on product liability and insurance solvency constraint properties to strengthen cost management, deadlines, budget management and risk, determine the use of insurance funds risk limits, gap analysis, sensitivity and scenario testing methods used, assessment and management of asset mismatch risk.

    44th insurance group (holding) company, an insurance company shall manage and control liquidity risk, according to the insurance services and risk appetite, and tests under different conditions may be subject to liquidity risk level and their own risk tolerance, liquidity risk management strategies, policies and procedures developed to guard against liquidity risk.

    Article 45th insurance group (holding) company, an insurance company shall manage and control the market risk assessment and management of interest rate risk, exchange rate risk, volatility risk, establish an effective market mechanism for risk assessment and management, management of market risk limits.

    Article 46th insurance group (holding) company, an insurance company shall manage and control credit risk, establishing credit risk management system, timely follow-up to assess credit risk, track and analyze positions and counterparty credit variety with regular back-test test. 47th insurance group (holding) company, an insurance company shall strengthen inter-bank, repo and securities lending and borrowing business management, strictly control the scale and the use of leverage, prohibit speculative or short-term interbank investments risky and illiquid assets.

    Insurance funds involved in derivatives trading, limited to hedging risk shall not be used for speculation and enlarge the transaction, and the specific measures formulated by the China insurance regulatory Commission. 48th insurance group (holding) companies, insurance companies should play an oversight role of the internal audit and external audit, at least once a year using internal comprehensive audit audit of insurance funds. Internal control audit report should reveal the use of insurance funds management compliance and risk profile.

Director Senior Investment Manager, head of insurance fund use Department and key positions before he left office, auditing should be conducted.

    Insurance Group (holding) company, the insurance company shall regularly report to the China insurance regulatory Commission insurance fund internal audit findings and associated auditing results. 49th insurance group (holding) companies, insurance companies, insurance funds risk management mechanisms should be established, developing contingency plans, controlling and preventing risks in a timely manner.

    Investment asset devaluation or a debt cannot be repaid, solutions should be developed, and timely reporting to the Circ.

    50th insurance group (holding) companies, insurance companies should ensure that risk management and control-related jobs and people have right to know and the right to query required to perform their duties, the right to access, ask all of data associated with the use of insurance funds, materials and details, and attended meetings associated with the utilization of insurance funds.

    Supervision and administration of the fifth chapter

    51st China insurance regulatory Commission on the supervision and control of the use of insurance funds, take a combination of regulatory and non-regulatory approach.

52nd Circ shall, in accordance with the corporate governance structure, risk management, investment management and solvency of insurance group (holding) company, classification and management of insurance funds supervision, on-going monitoring and dynamic assessment.

    Circ shall strengthen the insurance firms ' capital constraints, risk supervision index system determine the utilization of insurance funds, and based on the assessment results, take appropriate regulatory measures, prevention and risk mitigation.

    53rd insurance group (Holdings), insurance companies in charge of the senior investment manager, the asset-management arm of the main charge, insurance, asset management, boards of Directors, supervisors and senior management staff, should be obtained before the term qualification approved by the China insurance regulatory Commission.

54th insurance group (holding) companies, major equity investments in insurance companies, shall be approved by the China insurance regulatory Commission.

Insurance issued or established asset management institutions insurance asset management products, the implementation of the initial declaration approved, after reports of similar products.

CIRC on these matters in accordance with the relevant provisions of compliance, program review.

    Significant equity investment refers to the proposed investment non-insurance financial firms or control enterprise investment behaviors of the insurance business.

55th Circ is entitled to insurance group (holding) company, reports, statements, documents and information provided by insurance companies.

    Reports, statements, documents and information submitted should be timely, true, accurate and complete.

    56th insurance group (holding) company, insurance company shareholders, resolutions of the shareholders, Board of Directors of major investment, should be made within 5 working days of the resolution to the CIRC report, except as otherwise stipulated by the Circ.

    57th Circ is entitled to insurance group (holding) company insurance funds, insurance companies will use data on dynamic connection and CIRC regulatory information system.

    Article 58th insurance group (holding) company and the solvency position of the insurance company does not meet the requirements of the China insurance regulatory Commission, the CIRC may restrict its funding application forms, proportions.

    59th insurance group (holding) company, an insurance company violates Fund application form and the relevant provisions of, a rectification by the Circ.

    60th China insurance regulatory Commission has the right of insurance group (holding) company, insurance company directors, supervisors, Senior Manager and head of the asset management Division to monitor conversations, and requires the use of insurance funds, risk control and internal management of the relevant major issues clarification.

    61st insurance group (holding) serious violations of relevant provisions of funds, insurance companies, head of the CIRC may order adjustment and management personnel.

    62nd insurance group (holding) company's serious violations of relevant regulations of the use of insurance funds, insurance companies, were ordered to rectify fails to mend, the CIRC may decide to appoint related personnel reorganization group, the reorganization of the company.

    63rd insurance group (holding) company, an insurance company violates these provisions the use of insurance funds, CIRC shall be given administrative punishment.

    64th article insurance funds using of other party in participation insurance funds using activities in the, violation about legal, and administrative regulations and this approach provides of, China Circ should records its bad behavior, and will about situation informed its industry competent sector; plot serious of, China Circ can informed insurance group (holding) company, and insurance company 3 years shall not with engaged in related business, and business about regulatory sector law give administrative punishment.

    65th personnel who abuse their powers, neglect their duties by the CIRC, or divulge confidential the business secrets of the units and personnel, shall be investigated for legal responsibility according to law.

    The sixth chapter supplementary articles

    66th insurance asset management managing the use of insurance funds in accordance with the measures implemented.

    67th insurance company payment of insurance fund use, from its provisions.

    68th China insurance regulatory Commission on insurance group (holding) company funds otherwise provides, from its provisions.

    69th this approach by the China insurance regulatory Commission is responsible for the interpretation and amendment. 70th these measures shall come into force on August 31, 2010. Existing policies and regulations, is inconsistent with this approach, all these measures shall prevail.