China Banking and Insurance Regulatory Commission, Measures for the Administration of the Net Capital of Wealth Management Subsidiaries of Commercial Banks (Trial Implementation) (Draft for Comments)
中国银行保险监督管理委员会商业银行理财子公司净资本管理办法 (试行) (征求意见稿)
October 16, 2019 | BY
Susan MokRegulatory criteria for net capital are laid out for wealth management subsidiaries of banks
Issued: September 25, 2019
Main contents: A wealth management subsidiary of a bank shall continuously satisfy the following regulatory criteria for net capital:
(1) may not be less than Rmb500 million or the equivalent in a freely convertible currency, and may not be less than 40% of its net assets; and
(2) may not be less than 100% of its risk capital (Article 11).
If a change in the net capital, the net capital to net asset ratio, the net capital to risk capital ratio or other such indicator of a wealth management subsidiary of a bank exceeds 20% as compared to the end of the preceding reporting period, the same shall be reported in writing and the cause explained to the China Banking and Insurance Regulatory Commission within five working days from the date on which the circumstance occurred (Article 16).
If a wealth management subsidiary of a bank invests its own funds in the company's wealth management products, all such funds shall be invested in wealth management products comprising standard assets, and may not be invested in non-standard assets (Appendix 2(4)).
clp reference:3610/19.09.25 issued:2019-09-25This premium content is reserved for
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