In March 2023, the Central Committee of the Communist Party of China and the State Council issued the Plan for the Reform of Party and State Institutions. Decided to set up the State Financial Supervision Administration on the basis of the Bank of China Insurance Regulatory Commission. China Banking Insurance Regulatory Commission will no longer be retained. On May 18, the State Financial Supervision Administration was unveiled.
The State Financial Supervision Administration is responsible for implementing the principles, policies and decision-making arrangements of the CPC Central Committee on financial work, and implementing the centralized and unified leadership of the CPC Central Committee on financial work in the process of performing its duties.
The main responsibilities are:
(a) to implement unified supervision and management of the financial industry except the securities industry in accordance with the law, strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision and continuous supervision, and maintain the legal and steady operation of the financial industry.
(two) to systematically study the relevant issues of the reform and opening up of the financial industry and the effectiveness of supervision, and to participate in the formulation of the strategic plan for the reform and development of the financial industry. Draft laws and regulations on banks, insurance and financial holding companies, and put forward suggestions for formulation and revision. Formulate relevant regulatory systems for banking institutions, insurance institutions and financial holding companies.
(3) Coordinating the protection of the rights and interests of financial consumers. Formulate the development plan for the protection of financial consumers' rights and interests, establish and improve the system for the protection of financial consumers' rights and interests, study major issues concerning the protection of financial consumers' rights and interests, carry out financial consumers' education, and build a complaint handling mechanism for financial consumers and a diversified settlement mechanism for financial consumer disputes.
(4) Managing the access of banking financial institutions, insurance institutions and financial holding companies according to law, and supervising their corporate governance, risk management, internal control, capital adequacy ratio, solvency, business behavior and information disclosure, etc.
(5) Conduct on-site inspection and off-site supervision of banking institutions, insurance institutions and financial holding companies, conduct risk and compliance assessment, and investigate and deal with violations of laws and regulations.
(six) unified preparation of banking institutions, insurance institutions, financial holding companies and other regulatory data statements, issued in accordance with the relevant provisions of the state, to perform the relevant duties of comprehensive statistics of the financial industry.
(7) Responsible for the scientific and technological supervision of banking institutions, insurance institutions and financial holding companies, establish a scientific and technological supervision system, formulate scientific and technological supervision policies, build a big data platform for supervision, carry out risk monitoring, analysis, evaluation and early warning, and make full use of scientific and technological means to strengthen supervision and prevent risks.
(8) Carry out penetrating supervision over banking institutions, insurance institutions and financial holding companies, formulate equity supervision system, examine and approve shareholders, actual controllers and changes in equity according to law, investigate shareholders, actual controllers, concerted parties and ultimate beneficiaries according to law, and take relevant measures or punish violations of laws and regulations.
(9) Establish a financial inspection system except in the fields of currency, payment, credit investigation, anti-money laundering, foreign exchange, securities and futures, establish a linkage mechanism between administrative law enforcement and criminal justice, investigate, collect evidence and deal with relevant subjects of illegal financial activities according to law, and transfer suspected crimes to judicial organs.
(ten) the establishment of banking institutions, insurance institutions, financial holding companies and other recovery and disposal systems, in conjunction with the relevant departments to study and put forward opinions and suggestions on the recovery and disposal of financial institutions and organize their implementation.
(eleven) take the lead in cracking down on illegal financial activities, organize the establishment of illegal financial activities monitoring and early warning system, organize, coordinate, guide and urge relevant departments and local governments to carry out the work of preventing and disposing of illegal financial activities according to law. To study and put forward relevant suggestions on illegal financial activities involving new products and new formats across departments and regions, and organize their implementation as required.
(12) In accordance with the requirements of establishing a local financial supervision system with the agency of the central financial management department as the main body, guide and supervise the relevant business work of local financial supervision, and guide and coordinate local governments to fulfill their territorial responsibilities to deal with related financial risks.
(thirteen) responsible for the supervision of banking institutions, insurance institutions, financial holding companies and information technology service institutions and other intermediary institutions, such as information technology outsourcing and other cooperative activities, investigate and deal with illegal acts according to law, and take relevant measures against financial institutions.
(fourteen) to participate in the formulation of relevant international organizations and international financial regulatory rules, and to carry out foreign exchanges and international cooperation.
(fifteen) to complete other tasks assigned by the CPC Central Committee and the State Council.
To sum up, the State Financial Supervision Administration is an institution directly under the State Council established on the basis of the Insurance Regulatory Commission of the Bank of China.
Legal basis:
Regulations on the Management of State-owned Financial Capital (Draft for Comment)
essay
Ownership state-owned financial capital belongs to the state, that is, all the people. The State Council exercises the ownership of state-owned financial capital on behalf of the state.
Article 4
Management requires the state to establish and improve the management and supervision system of state-owned financial capital suitable for the socialist market economy, establish and improve the performance appraisal and accountability system, and promote the preservation and appreciation of state-owned financial capital.
Article 5
Management Principles The management of state-owned financial capital should follow the principles of adhering to the leadership of the Party, serving the overall situation, centralization and unification, clear rights and responsibilities, and openness and transparency.
Article 6
Management objectives The management objectives of state-owned financial capital are to optimize the layout of state-owned financial capital, enhance the vitality, competitiveness and risk resistance of state-owned financial institutions, realize the preservation and appreciation of state-owned financial capital, better serve the real economy, prevent and control financial risks, deepen financial reform, safeguard the basic national system and promote the development of socialist market economy.