Reporters recently learned from China Banking and Insurance Regulatory Commission that in order to clarify the boundaries and service connotations of various trust businesses and enrich the supply of original trust businesses, China Banking and Insurance Regulatory Commission drafted the "Notice on Matters Related to Standardizing the Classification of Trust Businesses of Trust Companies (Draft for Comment)" and recently publicly solicited opinions from the public.
Image source: Xinhua News Agency issued
Draft for Comments emphasizes the positioning of trustees of trust companies. Based on the essence of various trust services, trust purposes, trust establishment methods, and trust property management content are used as classification dimensions. Trust businesses are divided into three categories: asset management trusts, asset service trusts, and public welfare/charitable trusts. Trust business sub-items are subdivided under each category of business, and the definition, boundaries, service content, and prohibited matters of each business are standardized. The
consultation draft requires trust companies to strictly grasp the boundaries of trust business in accordance with the new classification requirements for trust business, improve internal management systems and internal control mechanisms, carry out regular inspections, carry out strict accountability, and ensure that trust business is carried out in accordance with the new classification standards.
The person in charge of the relevant departments of the China Banking and Insurance Regulatory Commission stated that in order to promote the steady and orderly rectification of trust companies and ensure a smooth transition, the draft for comments plans to set up a three-year transition period. Trust companies should comprehensively sort out all existing businesses, formulate plans, and make orderly rectifications. (Reporter Li Yanxia)
