General Office of the China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Investment of Insurance Capital in Assembled Funds Trusts
中国银行保险监督管理委员会办公厅关于保险资金投资集合资金信托有关事项的通知
August 22, 2019 | BY
Susan MokThe underlying assets of an assembled funds trust in which insurance capital may be invested are limited
Issued: June 19, 2019
Effective: as of date of issuance
Main contents: An insurance institution shall expressly specify its criteria for selecting trust companies, improve its continuous evaluation mechanism and include the details of implementation in its annual internal control audits. The audited net assets at the end of the previous year of a trust company serving as a trustee may not be less than Rmb3 billion (Article 3).
The underlying assets of an assembled funds trust in which insurance capital is invested shall be limited to non-standardized debt assets, unlisted equity assets and other assets recognized by the China Banking and Insurance Regulatory Commission, and the investment orientation of such a trust shall comply with the state’s macroeconomic policy, industrial policy and regulatory policy (Article 4).
An external credit rating shall be carried out for an assembled funds trust of which the underlying assets are non-standardized debt assets, and its credit rating may not be less than AA as rated by a qualified domestic credit rating agency or the equivalent of AA (Article 5).
Where insurance capital is invested in an assembled funds trust, rights, responsibilities and obligations shall be expressly set forth in the trust contract, and use of the funds trust as a roundabout is prohibited. If, in managing a funds trust, the trust company engages a third party to provide investment advisory services, it may not assign the active management responsibilities to the investment advisor or other such third party firm, and may not provide roundabout services for insurance capital (Article 8).
Insurance capital may not be invested in a single funds trust or in inferior-grade beneficiary rights of a structured assembled funds trust (Article 9).
Except for assembled funds trusts with an AAA credit rating, the amount invested in an assembled funds trust by an insurance group (holding) company or insurance company may not be greater than 50% of the paid-in trust size of the product in question, and the amount invested in an assembled funds trust by an insurance group (holding) company or insurance company and its affiliates may not, in total, exceed 80% of the paid-in trust size of the product in question (Article 10).
Related legislation: Measures for the Administration of the Application of Insurance Capital
Repealed legislation: Circular on Matters Relevant to the Investment of Insurance Capital in Assembled Funds Trust Plans, 2014
clp reference:3910/19.06.19 issued:2019-06-19 effective:2019-06-19This premium content is reserved for
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