China Banking and Insurance Regulatory Commission: Regulating matters related to off-site departments of trust companies

Our reporter Xu Beibei reported that in order to optimize the cross-regional business model of trust companies, promote the reform, transformation and development of trust companies, and better serve the real economy, the China Banking and Insurance Regulatory Commission recently issued the "Notice on Regulating Matters Related to Off-site Departments of Trust Companies" (hereinafter (referred to as "Notice"). The "Notice" has eight articles in total, and regulates matters related to off-site departments of trust companies based on the principles of reasonable layout, classified policies, and appropriate leniency and severity. First, comprehensively consider the actual development of the current trust industry and the needs of reform and transformation, and clarify the requirements for the establishment and management of off-site departments of trust companies. Second, trust companies are strictly prohibited from setting up off-site management headquarters, and trust companies that have already set up off-site management headquarters are subject to conditions to retain them. The third is to clarify the regulatory responsibilities of the Banking and Insurance Regulatory Bureau where the trust company is located and the Banking and Insurance Regulatory Bureau where the off-site department is located. The fourth is to set reasonable rectification deadlines and require relevant trust companies to carry out rectification work in off-site departments in a steady and orderly manner.

The issuance and implementation of the "Notice" will effectively make up for the shortcomings of trust supervision and help promote the standardized and healthy development of the trust industry. In the next step, the China Banking and Insurance Regulatory Commission will continue to strengthen the supervision and management of trust companies and strive to improve the quality and efficiency of the trust industry in serving the real economy.