General Office of the China Banking Regulatory Commission, Circular on Issues Relevant to Further Regulating the Personal Financial Management Business of Commercial Banks

Issued: April 3 2008

Main Contents: When naming financial management products, commercial banks may not use enticing or misleading words, or words that give promises, and may not use ambiguous language that underlies potential risks or is prone to causing disputes. Commercial banks may not sell financial management products with no market analysis and projection or pricing basis. The minimum sales price of financial management products may not be less than Rmb50,000 (or its equivalent in a foreign currency). Commercial banks may not, in a disguised form, sell overseas funds or other overseas financial investment products that violate laws or regulations in the name of selling financial management products (Article 1).

Related Legislation: Tentative Measures for the Administration of the Personal Financial Management Business of Commercial Banks, Sep 24 2005, CLP 2006 No.2 p.44; and Guidelines for Managing the Risks Attaching to the Personal Financial Management Business of Commercial Banks, Sep 24 2005, CLP 2006 No.3 p.49