Consumer finance company administrative rules on pilot

    (November 14, 2013 Chinese Banking Regulatory Commission published come into force on January 1, 2014, 2013 2nd) Chapter I General provisions

    First for the development of consumer finance business, regulate the operation of consumer finance companies, according to the People's Republic of China banking supervision law and the People's Republic of China company law and other laws and regulations, these measures are formulated.

    Article consumer finance companies mentioned in these measures refers to approved by the CBRC, People's Republic of China territory, does not take deposits from the public and to the principle of small, decentralized, for Chinese residents to provide consumer loans for the purpose of the non-bank financial institutions.

    Article referred to consumer loans was a consumer financial company to consumer borrowers (not including the purchase of houses and cars) for the purpose of the loan. Fourth a consumer financial company shall be indicated in the name of "consumer finance".

    Without the approval of the CBRC, no institution may use in the name of "consumer finance".

    Article fifth banking regulatory authority shall supervise and administer the consumer finance company and its business activities.

    Chapter II establishment, modification and termination

Sixth application for establishment of a consumer financial company shall meet the following conditions:

(A) is consistent with the People's Republic of China company law and the articles of association provisions of the CBRC;

(B) meet the requirements of investors;

(C) comply with the minimum amount of registered capital as provided herein;

(D) meet the qualifications of Directors and senior managers and qualified staff familiar with consumer finance business;

(E) the establishment of effective corporate governance, internal control and risk management systems, and business operation management information system;

(F) operating in conformity with business premises, safety measures and other facilities;

    (VII) other prudent requirements as specified by the CBRC. Investor of the seventh a consumer financial company shall provide legally established enterprises in and outside of China, and is divided into the main contributors and contributors in General.

Main contributor is the financed amount up and amount is not less than the proposed consumer financial company's total equity of 30% investor, investor refers to other contributors except the main contributor.

    Main contributor referred to in the preceding paragraph shall be domestic and foreign financial institution or business to provide for non-financial enterprises in consumer lending products.

Eighth financial institution as the consumer finance company's main investors, subject to the following conditions:

(A) with 5 years experience of working in the field of consumer finance;

(B) the recent year-end total assets of not less than 1 year of 60 billion yuan or an equivalent amount in convertible currencies (on consolidated accounting statement basis);

(C) a healthy financial position, the last 2 consecutive profit in the fiscal year (on consolidated accounting statement basis);

(D) in good standing, no major violation records in the last 2 years;

(E) the true legitimate sources of stakes, no loan capital shares, shall not be entrusted funds may invest as shares;

(F) within 5 years of commitment not to transfer the shares of consumer finance companies (banking regulatory authority to order the transfer of excepted), and set out in the proposed articles of Association;

(G) having a sound corporate governance structure, internal control mechanisms and risk management systems;

(VIII) to satisfy the domicile country (region) of prudential requirements of a supervisory authority;

(I) the foreign financial institutions should set up a representative office in China for more than 2 years, or have set up branches, has complete confidence in the Chinese market analysis and research, country financial supervision authority has with the CBRC to establish good cooperation on supervision and management mechanism;

(10) other prudent requirements as specified by the CBRC.

    Financial institutions as a consumer financial company investors, in addition to paragraph (iii), (iv), (v), (vi), (VII), (VIII), (IX) provision of conditions, should also have registered capital of no less than 300 million yuan of RMB's condition or its equivalent in a convertible currency.

Nineth of non-financial companies as the consumer finance company's main investors, subject to the following conditions:

(A) the recent operating income of not less than 1 year of 30 billion yuan or an equivalent amount in convertible currencies (on consolidated accounting statement basis);

(B) the recent year-end net assets of not less than 1 year total assets of 30% (on consolidated accounting statement basis);

(C) a healthy financial position, the last 2 consecutive profit in the fiscal year (on consolidated accounting statement basis);

(D) in good standing, no major violation records in the last 2 years;

(E) the true legitimate sources of stakes, no loan capital shares, shall not be entrusted funds may invest as shares;

(F) within 5 years of commitment not to transfer the shares of consumer finance companies (banking regulatory authority to order the transfer of excepted), and set out in the proposed articles of Association;

(VII) other prudent requirements as specified by the CBRC.

    Non-financial business as a consumer financial company investor, should have (b), (c), (d), (e), (f) the conditions laid down.

    Tenth main contributor of a consumer financial company can be specified in the Statute of the consumer financial company, a consumer financial company when encountering payment difficulties, give liquidity support when business failed when losses erode capital, make up the capital in a timely manner.

    11th a consumer financial company shall have at least 1 over 5 years consumer finance business management and risk control, and paid no less than the proposed consumer financial company's total equity of 15% investors.

12th a consumer financial company's registered capital shall be a one-time paid-up monetary capital, minimum amount of RMB 300 million or its equivalent in a convertible currency.

    The CBRC according to developments in the consumer finance business and prudential needs, you can adjust the minimum amount of the registered capital. 13th a consumer financial company according to the needs of business development, approved by the China Banking Regulatory Commission, may establish branches.

    Establishment of branches of the specific criteria formulated by the CBRC separately.

    14th a consumer financial company directors and senior managers implement the qualification approval system.

15th a consumer financial company shall have one of the following changes, shall be submitted to the approval of the banking regulatory agency:

(A) the change of the company name;

(B) changing registered capital;

(C) change of ownership or change of equity structure;

(D) change of residence or place of business of the company;

(E) amend the company's articles;

(F) change of Directors and senior management personnel;

(G) change of business scope;

(H) the change of organizational structure;

(IX) the merger or Division;

    (10) other changes that require the approval of the CBRC.

16th a consumer financial company shall have one of the following conditions, may be dissolved upon approval of the CBRC:

(A) the company operating period as prescribed by the articles expires or as specified in the articles of other causes for dissolution occurs;

(B) the authority provided in its resolution to dissolve the company's articles;

(C) due to a merger or Division to be dissolved;

    (D) other legal cause.

    17th consumer financial companies because of dissolution, closure or bankruptcy, shall be terminated, its liquidation in accordance with the relevant State laws and regulations.

    18th a consumer financial company establishment, modification, termination and qualifications of Directors and senior management approved the administrative licensing procedures, in accordance with the relevant provisions of the CBRC.

    19th a consumer financial company set up, change and businesses involved in foreign exchange management matters, shall comply with the relevant regulations of the State administration of foreign exchange.

    Chapter III business scope and operating rules

Article 20th upon approval of the CBRC, consumer financial company to operate renminbi business partly or all of the following:

(A) issuance of loans for personal consumption;

(B) accepting shareholder deposits of domestic subsidiaries and shareholders;

(C) loans to domestic financial institutions;

(D) the issuance of financial bonds upon approval;

(E) interbank lending in the territory;

(F) related to consumer finance and consulting, agency business;

(G) sales and consumer credit-related insurance products;

(VIII) fixed-income securities investment business;

    (IX) other businesses approved by the CBRC.

    21st a consumer financial company issued to an individual consumer loans should not exceed customer's risk tolerance and the borrower loans shall not exceed a maximum of 200,000 yuan.

    Supervision and administration of the fourth chapter

    22nd a consumer financial company shall, in accordance with the relevant provisions of the Banking Regulatory Commission, establish a sound corporate governance structure and internal control system, development of business rules, to establish comprehensive and effective risk management system.

23rd a consumer financial company shall comply with the following regulatory requirements:

(A) the capital adequacy ratio is not less than the CBRC supervision requirements;

(B) net inter-bank funds balance is no more than 100%;

(C) asset loss reserve adequacy ratio not less than 100%;

(D) net investment balance is no more than 20%. Index calculation method in accordance with the CBRC about off-site supervision index system of reporting requirements.

    Banking prudential supervision will be required to make adjustments on the above index. 24th provides for the establishment of a consumer financial company shall be governed by prudent asset loss reserve system, timely and full provision for loss of assets.

    Was not fully prepared, not for profit distribution.

    25th a consumer financial company shall establish a consumer loan interest rate risk pricing mechanism, according to the cost of funds, risk, cost, return on capital requirements and market prices and other factors, within the scope allowed by laws and regulations, developing consumer loan interest rates to ensure pricing can cover risks.

    26th a consumer financial company shall establish an effective risk management system and reliable business processes, identify false application information and to prevent fraud.

27th a consumer financial company may be outsourcing needs, should develop policies associated with outsourcing and management systems, including the outsourcing decision-making process, outside of those providing evaluation and management, control, business information confidentiality and security measures and emergency plans.

Outsourcing agreement signed before a consumer financial company shall report to the banking regulatory agencies outsourcing major risk and appropriate risk mitigation measures.
A consumer financial company shall not loan decisions and control the core technology is closely related to outsourcing.

    28th a consumer financial company shall prepare and submit financial reports and other reports required by the banking regulatory authority.

    29th a consumer financial company shall establish a system of external audit on a regular basis, and within 4 months after the end of each fiscal year, will be confirmed by the signature of the legal representative's annual audit report submitted to the banking regulatory agency.

30th a consumer financial company shall be subject to supervision and inspection in accordance with law, and may not refuse or impede.

    Banking regulatory agencies if necessary, may appoint accounting firm of a consumer financial company's operating status, financial status, risk status, internal control system and the implementation of audits.

    31st a consumer financial company shall keep strictly confidential all personal information provided by the borrower obligations, should not be foreign disclosure.

    Articles 32nd to the borrower not returned according to the contract of loan principal and interest, a consumer financial company shall be to take lawful measures to collect, shall not use threats, intimidation, harassment or other improper means.

    33rd a consumer financial company shall, in accordance with the laws and regulations and banking regulators about regulatory requirements to protect financial consumers and business should follow the principle of openness and transparency, and comply fully with the obligation, to borrowers clearly understand loan amount, duration, price, payment method, and set out in the contract.

    34th a consumer financial company which contravenes this regulation, banking regulatory agency may order rectification; overdue rectification, or their actions seriously endanger the stability of the consumer financial company run, clients ' lawful rights and interests, can be differentiated from the banking regulatory authority, in accordance with the People's Republic of China Banking Regulatory Act and other laws and regulations, to suspend operations, restrict shareholder rights and other regulatory measures. 35th a consumer financial company has or may happen and seriously affect the customer the legitimate rights and interests of the credit crisis, banking regulators can legally take over or promote restructuring.

    Consumer finance company law business, poor management, where no revocation would seriously jeopardize the financial order, injurious to the public interest, the CBRC has the right to be withdrawn.

    The fifth chapter by-laws

    Article 36th Hong Kong, Macao and Taiwan funded the establishment of a consumer financial company in the area of the conditions for overseas investors.

    In the 37th article of the approach "above" all contain the number or level.

    38th article of the approach by the banking regulator is responsible for the interpretation. 39th these measures come into force on January 1, 2014, the original of the consumer financial company administrative rules on pilot (2009 of 3rd China Banking Regulatory Commission) abolished at the same time.