China's Financial Regulators Reach Agreement On Areas Of Responsibility

by Mary Swire, for LawAndTax-News.com, Hong Kong

30 June 2004

The China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission have signed an agreement designating their areas of regulatory responsibility, and facilitating the inter-agency sharing of information, it emerged this week.

The CBRC explained that the memorandum of understanding was created in order to avoid "regulatory vacuum and overlapping". The Banking Regulatory Commission will supervise and regulate the mainland's banks, financial institutions and trusts, in addition to vetting appointees to senior management positions in financial institutions.

The CSRC will regulate auditors, investment bankers, fund managers, business surveyors and brokers, in addition to regulating capital markets and setting development policy.

Meanwhile, the CIRC will supervise the insurance sector, scrutinising all mergers and acquisitions within the sector, approving the appointment of senior managers, and retaining approval authority for insurance firms and agents.

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