During his tenure as general manager of a trust company, Chen Mou did not strictly manage and audit the use of funds in accordance with the Accounting System for Financial Enterprises and the company's financial system, and carried out trust business in violation of regulations, resulting in heavy losses. This paper will discuss several key issues of this problem.

Rules of prudent operation

The company has seriously violated the prudent management rules. According to Article 21 of the Banking Supervision Law, banking financial institutions must strictly abide by prudent operating rules, including risk management, internal control, capital adequacy ratio and asset quality.

Ordered to suspend business for rectification

The CBRC may order the company to suspend business for rectification. According to Article 44 of the Banking Supervision Law, if a banking financial institution violates the regulations, the CBRC may order it to make corrections. If the circumstances are particularly serious or are not corrected within the time limit, it may be ordered to suspend business for rectification.

revoke the business license

The State Administration for Industry and Commerce cannot revoke the company's financial license. According to Article 44 of the Banking Supervision Law, only the CBRC has the right to take measures to order banking financial institutions to suspend business for rectification or revoke their business licenses.

Unqualified /disqualification

The CBRC may cancel Chen Mou's post-holding qualification for a certain period of time up to life. According to Article 48 of the Banking Supervision Law, if the directors, senior managers and other directly responsible personnel of banking financial institutions violate laws, administrative regulations and relevant state regulations on banking supervision, the CBRC may take a series of measures, including disqualification.