China Insurance Regulatory Commission, People's Bank of China and State Administration of Foreign Exchange, Tentative Measures for the Administration of Overseas Investment of Insurance Capital

中国保险监督管理委员会、中国人民银行、国家外汇管理局保险资金境外投资管理暂行办法

September 02, 2007 | BY

clpstaff &clp articles &

Further relaxing overseas investment of insurance capital.

Clp Reference: 3900/07.06.28 Promulgated: 2007-06-28 Effective: 2007-06-28

Promulgated: June 28 2007
Effective: As of date of promulgation

Applicability: For the purposes of these Measures, the term "entrusting party" means an insurance institution, such as an insurance company, insurance group company and insurance holding company lawfully established in China (Article 2).

Main Contents: To engage in the overseas investment of its insurance capital, an entrusting party shall satisfy the following conditions:

(1) having a sound corporate governance structure and sound asset management system, and having internal management systems and risk control systems that comply with the Risk Control Guidelines for Use of Insurance Capital (Trial Implementation);

(2) having relatively strong investment management capabilities, risk assessment capabilities and investment performance assessment capabilities;

(3) having a clear asset allocation policy and strategy and implementing strict management of asset-liability matching;

(4) its investment management team operating compliantly, and the senior management personnel in charge of investment having at least 10 years of financial or other economic work experience;

(5) having stable finances, good creditworthiness, its solvency adequacy ratio and risk monitoring indicators complying with relevant provisions of the China Insurance Regulatory Commission (CIRC), and not having a record of a major violation of laws or regulations during the most recent three years;

(6) having a permit to engage in foreign exchange business; and

(7) other conditions as specified by the CIRC.

The Measures also detail the custody accounts, risk management and information disclosure for, and government oversight and restrictions on, overseas investment of insurance capital.

Related Legislation: PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p.35; PRC Foreign Exchange Control Regulations (2nd Revision), Aug 5 2008, CLP 2008 No.8 p.77; and Risk Control Guidelines for Use of Insurance Capital (Trial Implementation), Apr 28 2004, CLP 2004 No.7 p.57

Repealed Legislation: Tentative Measures for the Administration of Overseas Utilization of Foreign Exchange Insurance Capital,
Aug 9 2004

Full Translation: See page 47

clp reference:3900/07.06.28prc reference:保监会、人民银行、外汇局令 [2007] 第 2 号promulgated:2007-06-28effective:2007-06-28

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