Financing Guarantees, In Anhui Province, The Company's Management Procedures (Trial Implementation)

Original Language Title: 安徽省融资担保公司管理办法(试行)

Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/dfzfgz/201506/20150600399261.shtml

Financing guarantees, in Anhui Province, the company's management procedures (trial implementation)

    (December 24, 2013 the 18th Executive meeting of the Anhui Provincial Government on January 12, 2014, Anhui provincial government order No. 250, published since March 1, 2014) Chapter I General provisions

    First in order to regulate the financing company Act to promote secured financing industry to work, improve the financing environment of small and medium enterprises, to support the real economy development, in accordance with the relevant laws and regulations, combined with the facts of the province, these measures are formulated.

Second article this regulation is applicable in the province within the administrative area of secured financing company set up, modification, termination, management, supervision and management of activities.

Financial guarantee mentioned in these measures refers to the guarantor agreed with banking institutions and other creditors, when the sponsor does not meet financing obligations towards creditors, by the guarantor shall bear liability stipulated in the contract.

    Financial guarantee companies in these measures refers to legally established, business financing guarantee business limited liability companies and joint stock limited. Third people's Governments above the county level should establish financial guarantee industry-supporting policy system, the implementation of preferential tax policies.

Provincial people's Government and the conditions of the city and County (district) people's Government the establishment of guarantee funds to support fund raising.

    The people's Governments above the county level shall improve the financing risk, dispersion and disposal mechanism, promoting the establishment of financing risk-sharing mechanisms between companies and banking institutions.

Fourth of the people's Government above the county level financial administrative departments or the Government departments responsible for supervision and management of finance guarantee Corporation (hereinafter referred to as regulators), responsible for financing guarantees the administrative supervision and management of the company.

    Development and reform, the people's Governments above the county level economy and information technology, finance, public security, industrial and commercial sectors in accordance with their respective responsibilities, to do a financing guarantee supervision and administration of the company.

    Chapter II establishment, modification and termination

Article fifth financing company shall satisfy the following conditions:

(A) is consistent with the People's Republic of China Act regulations;

(B) meet the required conditions of the shareholders;

(C) the registered capital in line with national requirements;

(D) the qualifications for directors, supervisors and senior managers and practitioners;

(E) a sound organizational structure, internal control and risk management systems;

(F) meet the requirements of the business premises;

    (VII) other conditions stipulated by laws, rules and regulations.

Article VI financial guarantee company applying for the establishment of a branch shall satisfy the following conditions:

(A) business financing guarantee business for more than two years in a row;

(B) the working capital available to affiliates does not exceed 50% of the registered capital;

(Iii) operating an illegal logging in nearly two years;

(Iv) branch organs meet the qualifications to be appointed;

(E) meet the requirements of the business premises;

    (Vi) other conditions stipulated by laws, rules and regulations.

Article finance guarantee Corporation's shareholders, subject to the following conditions:

(A) legal persons and other organizations the shareholders shall have a sound corporate governance and a sound and effective internal control system, shareholders shall have full civil capacity of natural persons;

(B) have a good credit record;

(C) nearly three years in good financial standing and has a strong management ability and financial strength;

    (D) other conditions stipulated by laws, rules and regulations.

Article eighth secured financing companies and their branches shall be approved by the provincial regulatory review, issue a business license. Without permission, no unit or individual may engage in financial guaranty business, shall not be used in the name secured financing.

    Except as otherwise provided in laws and administrative regulations.

Nineth apply for establishing a financing company, regulators should be submitted the following documents and information:

(A) the application, containing the proposed financing company name, domicile, registered capital and business issues;

(B) the shareholders or sponsors Conference on company establishment, through the company's articles of Association, resolutions of the election of Directors and supervisors, as well as the draft statute;

(C) the register of shareholders and capital contributions, ownership structure and its associated relationship;

(D) the shareholders certificate of capital verification and credit certificate of the shareholders and relevant information;

(E) of the proposed directors, supervisors and senior management personnel qualifications;

(F) the place of supporting documents;

(G) the company name prior approval written notice;

    (VIII) other conditions prescribed by laws, rules and regulations documents.

Article tenth finance security company applying for the establishment of a branch, it shall submit to the regulators the following documents and information:

(A) the application, set out plans to establish a branch name, domicile, matters such as working capital and lines of business;

(B) the submission to regulators in recent two years business, financial and accounting reports;

(C) evidence of sufficient working capital;

(D) Regulation issued by nearly two years of no proof of illegal business records;

(E) the proposed branch mainly responsible for the certificate of qualification;

(F) the place of supporting documents;

    (VII) other conditions prescribed by laws, rules and regulations supporting information.

11th finance security company approved to operate the following financing guarantee business:

(A) loan guarantees;

(B) Bills guarantee;

(C) letter of credit guarantees;

(D) issuing guarantees of financial products;

(V) security;

    (Vi) other financing guarantee business of State regulations.

12th finance company approved to run the following businesses:

(A) litigation preservation guarantees, tender guarantees, project performance guarantees financing guarantee business, property preservation guarantees;

(B) financed with secured business advisory, financial advisory, intermediary services and logistics supervision;

(C) with its own capital investments;

    (D) other operations stipulated by the State. 13th article financing guarantees company change company name, and registered capital, and holding 20% above of shareholders, and business range, across set district of city migration residence, Division or merged, and so modified company articles of, should to province regulatory sector proposed application; change company residence, and holding 5% above 20% following of shareholders, and branch institutions operating funds, and so modified company articles of, should to province regulatory sector delegate of set district of city regulatory sector proposed application.

Replacement of the Chairman, the Chairman of the Supervisory Board, the General Manager shall be submitted to the provincial regulatory authorities review their qualifications; replace other Board Directors, supervisors and senior management staff, should be submitted to the provincial regulators, regulatory review, commissioned a set of qualifications.

Documents and information submitted by the applicant are incomplete or do not comply with the statutory format, regulators shall, on the spot or 5th time inform all applicants need to supplement content documents and materials submitted by the applicant is complete, comply with the statutory format, regulators should be change.

    Change registration relates to change license shall be from the date of registration in the 5th, by the provincial regulatory authorities issue a new operating license.

14th first issued business license is valid for 2 years. Financial guarantee companies and branch offices need to continue operating license, shall, on the expiry of 30th, apply to the regulators making a licensing decision. Regulators should make a decision on whether to approve the extension before the expiry of the validity period.

    Fails to make a decision, considered to approve the extension, extension is valid for 5 years.

    15th finance company Division or merger or any articles of dissolution dissolution is required, shall be approved by the provincial regulatory authorities and apply for cancellation of registration by the approval document from the industrial and commercial administration departments.

    16th secured financing companies and branches from the date of obtaining the business license, without any justified reason, not financial guarantee business for more than 6 months, or ceases after the financing guarantee business for more than 6 months in a row, followed by the company registration authority to revoke its business license, the original organ of cancellation of its business license, and shall be published.

    Chapter III operation and risk control

17th finance guarantee corporation shall comply with prudential rules, establishing and perfecting the guarantee after project review, manage, recover the disposal of business rules, internal control and risk management systems.

    The prudential rules laid down in the preceding paragraph, including use of asset quality, capital, reserves, related party transactions, risk concentration, liquidity, and so on.

    18th finance security company risk management, compliance audit Department Chief, should be determined by the economic, financial, legal and other related professional qualifications, and have over three years experience of the officer.

    19th finance guarantee corporation shall be in accordance with the financial rules and accounting standards and other requirements, establish a sound financial accounting and internal audit systems.

    20th article financing guarantees company on single was guarantor provides of except financial products issued guarantees yiwai of financing guarantees responsibility balance, shall not over its net worth of 10%; on single was guarantor and associated party provides of except financial products issued guarantees yiwai of financing guarantees responsibility balance, shall not over its net worth of 15%; on single was guarantor and associated party provides of loan guarantees and financial products issued guarantees, financing guarantees responsibility balance, shall not over its net worth of 30%. 21st finance security company's financing guarantee liability balance, no more than 10 times times its net worth. In the past two years supervision and evaluation and credit rating remains well above the financing company, can be relaxed its financing guarantee liability balance as a proportion of net assets, but shall not be more than 15 times.

    Except as otherwise provided in laws and administrative regulations. 22nd financing company with its own capital investment limited to government bonds, financial bonds, large business debt financing instruments such as fixed-income products, and there is no conflict of interest and not more than the total net assets of 20% other investments. In the past two years supervision and evaluation and credit rating remains well above the financing company, other investment as a proportion of its net assets can be relaxed, but shall not exceed a maximum of 35%.

Finance guarantee fund or share other financing companies, are not subject to the investment restrictions.

Other investments other than equity secondary markets are mainly in equity, commercial real estate, trusts and funds investments, and bank loans.

Financial guarantee companies holding fixed assets worth more than part of the net assets of 10% in the same period, included in other investments.
In calculating the financial guarantee company security magnification, concentration risk indicators, total other investment should be deducted from its net worth in the same period.

    23rd finance guarantee corporation shall, in accordance with the year Dan 50% of premium income, extracting unearned reserve.

    Financing guarantee shall not be less than at the end of that year the company guarantee liability balance 1%, extraction and guarantee compensation reserve.

24th finance security company guarantee business districts and cities, local regulators and the sponsor should be local regulatory authorities for the record; a significant risk, the principal seat of regulators should be involved in the risk management work.

    Affiliated companies of financing transactions should be reported to the local authorities for the record in the 30th, and disclosed in the notes to the financial statements.

25th finance guarantee corporation shall not engage in the following activities:

(A) lending;

(B) deposit or borrow money in other forms;

(C) for illegally absorbing deposits or guarantee deposits in disguised form;

(Iv) Trustees lending or trustee investments, financing;

(E) provide financing to its controlling shareholder, actual control of security;

(Vi) to banks and other financial institutions, or personal loan, including the increase of operating capital. Finance guarantee Corporation is one of the acts specified in the preceding paragraph, seriously endangering the market order, injurious to the public interest, be revoked according to law by regulators.

    Except as otherwise provided in laws and administrative regulations.

    Supervision and administration of the fourth chapter

    Article 26th regulators shall establish a sound financing company market access, non-spot supervision and on-site inspection regimes, and with the judicial authorities, industrial and commercial sectors to develop financial security company regulatory coordination and information-sharing mechanisms.

27th regulators shall establish a sound financing company information collection, collation, statistical analysis system, continuous monitoring of the State of their business risks.

Financial guarantee company shall be true, accurate, complete and timely submission to regulators operating reports, financial reports, compliance reports and other documents and information.

    Financing the company's annual financial report shall be audited by a qualified social intermediary organizations.

28th regulators as required, shall conduct on-site inspection to take the following measures:

(A) the inspection, copying and inspection matters relating to the accounting books, documents and data;

(B) check the financing company computer information management system, replication-related data and information;

(C) asked the finance staff members of a security company.

    May be transferred, concealment or destruction of documents, materials and electronic equipment, and approved by the supervision Department, and antecedent register. Article 29th operation may have a significant risk of financial guarantee companies, regulators should make an appointment with their Chairman, Chairman of the Supervisory Board and senior management staff to monitor the talks, suggesting that risk.

    If necessary, proposals for its directors, supervisors and senior managers, and the business risks to inform creditors.

    30th of municipal and County (district) regulatory authorities within their respective administrative areas should be applied for the establishment of financing companies, investment, corporate governance and internal controls, prudential rules, laws and regulations, such as business counselling, risk control, provide the counselling report. 31st building supervision and evaluation system in the financing company. Regulators should regularly on the financing company's legitimacy and risk evaluation.

Supervision and evaluation results as a basis for prudent management.

Credit management departments should be secured financing company credit information access national and provincial credit information platform, facilitating finance security company is a guarantor credit information.

    Encourage financing company credit risk ratings and improve confidence in financial institutions and banking. 32nd financial guarantee companies a significant risk event shall promptly to cities and counties (districts) regulators report briefly, within 24 hours report specific conditions of city, County (district) regulators under major risk events, things change and the degree of risk and take emergency measures, and to report to the higher authorities.

That may affect financial order and social stability in the region, provincial regulatory authorities provincial people's Government should be reported within 24 hours of the incident.

Major risk events in the preceding paragraph include:

(A) the financing company triggered the mass incidents;

(B) financial guarantee company security fraud, guarantees compensation or investment losses could reach more than its net assets 5%;

(C) financial guarantee company debt maturity has not been liquidated the cash flow difficulties or inability to repay debts;

(D) financing main were sealing up, distraining, freezing of the assets of the company;

(E) finding financing and guarantee company shareholders false funded, flight of capital contribution or significant adverse impact on the company's main shareholders;

(F) the company board directors, supervisors and senior managers suspected of crimes, investigation or by administrative organs, judicial organs in accordance with law enforcement measures;

(G) financing company Board of Directors, supervisory board members or senior managers resigned more than half in 3 consecutive months;

    (H) financing the firm's principals disappearances, wrongful death or loss of legal capacity.

    The fifth chapter legal liability

33rd regulators and their staff of any of the following acts shall be given disciplinary action constitutes a crime, criminal responsibility shall be investigated in accordance with law:

(A) illegal approval of financing companies and branch offices;

(B) an on-site inspection;

(C) illegal to take regulatory measures or the imposition of administrative penalties;

(D) fails to report or disposition of major risk events;

    (E) abuse of power, dereliction of duty or engages in.

34th article violates these rules, unauthorised business of financing and supervision departments at and above the county level shall, jointly with relevant departments shall be banned.

    Violation of these rules, unauthorized use of secured financing in the company name is written, the supervision departments at and above the county level shall be ordered to correct, and to a fine of up to 5000 Yuan more than 20000.

35th financial guarantee companies in violation of the rules of any of the following acts, supervision departments at and above the county level shall be ordered to correct and give a warning, and to a fine of up to 10000 Yuan more than 30000:

(A) the unauthorized establishment of branches;

(B) procedures alter such changes;

(C) conduct business beyond the approved business scope;

(D) the directors, supervisors and senior management officers serve without approved qualifications;

(E) impede or refuse to conduct inspections by regulators;

(Vi) not in accordance with the provisions of the information disclosure or submission to regulatory documents, data, statistical data;

    (VII) violate the provisions of prudential rules and risk control.

36th financial guarantee companies in violation of the rules, any of the following circumstances, regulatory authorities above the county level shall be ordered to correct, and a fine of more than 10000 30000 Yuan the following constitutes a crime, criminal responsibility shall be investigated in accordance with law:

(A) lending;

(B) deposit or borrow money in other forms;

(C) for illegally absorbing deposits or guarantee deposits in disguised form;

(Iv) Trustees lending or trustee investments, financing;

(E) to its controlling shareholders and actual controllers to provide financing guarantees;

    (Vi) to banks and other financial institutions, or personal loan, including the increase of operating capital.

    The sixth chapter supplementary articles 37th article of the rules take effect on March 1, 2014.