Measures for the Administration of the Utilization of Insurance Funds

· Document Number：Order No. 1 [2018] of the China Insurance Regulatory Commission

· Area of Law： Insurance

· Level of Authority： Departmental Rules

· Date issued：01-24-2018

· Effective Date：04-01-2018

· Status： Effective

· Issuing Authority： China Insurance Regulatory Commission

Order of the China Insurance Regulatory Commission
(No. 1 [2018])
The Measures for the Administration of the Utilization of Insurance Funds, as adopted at the 5th chairman's executive meeting of the China Insurance Regulatory Commission on January 10, 2018, are hereby issued, and shall come into force on April 1, 2018.
Vice Chairman: Chen Wenhui
January 24, 2018
Measures for the Administration of the Utilization of Insurance Funds
Chapter I General Provisions
Article 1 These Measures are developed in accordance with the Insurance Law of the People's Republic of China and other laws and administrative regulations for the purposes of regulating the utilization of insurance funds, preventing risks in the utilization of insurance funds, protecting the lawful rights and interests of the parties to insurance, and maintaining the insurance market order.
Article 2 These Measures shall apply to the utilization of insurance funds by insurance group (holding) companies and insurance companies legally formed within China.
Article 3 For the purposes of these Measures, “insurance funds” means the capital, additional paid-in capital, undistributed profits, all kinds of reserves, and other funds denominated in Renminbi and foreign currencies of insurance group (holding) companies and insurance companies.
Article 4 The utilization of insurance funds must primarily aim at serving the insurance industry, adhere to the principle of stability, prudence and safety, conform to the regulatory requirements for solvency, be included in the asset and liability management and comprehensive risk management according to the nature of insurance funds, and be intensive, specialized, standardized and market-oriented.
Insurance funds shall be utilized independently. No shareholder of any insurance group (holding) company or insurance company shall intervene in the utilization of insurance funds in violation of laws or regulations.
Article 5 The China Insurance Regulatory Commission (“CIRC”) shall regulate the utilization of insurance funds according to the law.
Chapter II Forms of Fund Utilization
Section 1 Scope of Fund Utilization
Article 6 The utilization of insurance funds shall be limited to the following forms:
(1) Bank deposits.
(2) Trading in negotiable securities such as bonds, stocks, and shares of securities investment funds.
(3) Investment in real estate.
(4) Investment in equity.
(5) Other forms of fund utilization as prescribed by the State Council.
Overseas investments with insurance funds shall conform to the relevant provisions issued by the CIRC, the People's Bank of China and the State Administration of Foreign Exchange.
Article 7 Where insurance funds are invested in bank deposits, a commercial bank meeting the following conditions shall be selected for such deposits:
(1) The bank's capital adequacy ratio, net assets, and provision coverage, among others, conform to the regulatory requirements.
(2) The bank has a standard governance structure, a sound internal control system, and good business performance.
(3) The bank has no records of gross violation of laws and regulations in the last three years.
(4) The bank's credit rating reaches the standard as prescribed by the CIRC.
Article 8 The bonds in which insurance funds are invested shall reach the credit levels that are assigned by credit rating institutions recognized by the CIRC and meet the prescribed requirements, mainly including government bonds, financial bonds, enterprise (corporate) bonds, non-financial corporate debt financing instruments, and other bonds meeting the relevant provisions.
Article 9 The stocks in which insurance funds are invested shall mainly include the stocks which are publicly offered, listed, and traded and the stocks which are non-publicly offered by listed companies to specific investors.
Investment in stocks with insurance funds is divided into general stock investment, major stock investment and acquisition of listed companies. The CIRC shall implement differential supervision in light of the different circumstances.
Investment in stocks of companies listed on the National Equities Exchange and Quotations and stocks to be subscribed for and traded in foreign currencies shall be separately prescribed by the CIRC.
Article 10 Where insurance funds are invested in a securities investment fund, the fund management institution for the securities investment fund shall meet the following conditions:
(1) It has good corporate governance and a sound risk control mechanism.
(2) It performs contracts according to the law, and protects the lawful rights and interests of investors.
(3) It has been formed for not less than one year.
(4) It has no records of any gross violation of laws and regulations in the last three years; and it has no records of any gross violation of laws and regulations since the date of its formation, where three years have not elapsed since its formation.
(5) It has established an effective firewall mechanism between its securities investment fund business and asset management business for specific customers.
(6) It has a stable investment team, good historical investment performance, and a relatively stable size of assets or fund shares under its management.
Article 11 The real estate in which insurance funds are invested means land, buildings and other fixtures on land, and the specific measures shall be developed by the CIRC.
Article 12 The equities in which insurance funds are invested shall be the equities of joint stock companies and limited liability companies that are legally formed and registered within China and are not publicly listed on any stock exchange.
Article 13 An insurance group (holding) company or an insurance company shall use its own funds to purchase self-use real estate, conduct acquisition of listed companies or make equity investment to achieve control over other enterprises.
Article 14 The equity investment made by an insurance group (holding) company or an insurance company to achieve control over other enterprises shall meet the relevant regulatory provisions on solvency. If the insurance subsidiary of an insurance group (holding) company does not meet the regulatory requirements for solvency of the CIRC, the insurance group (holding) company shall not invest in non-insurance financial enterprises.
The equity investment made to achieve control shall be limited to the equity investment in the following enterprises:
(1) Insurance enterprises, including insurance companies, insurance asset management institutions, full-time insurance agencies, insurance brokerages and insurance adjustment institutions.
(2) Non-insurance financial enterprises.
(3) Insurance-related enterprises.
For the purpose of these Measures, “insurance asset management institutions” means financial institutions that are registered according to the law with the approval of the CIRC and are authorized to manage insurance funds and other funds, including insurance asset management companies and their subsidiaries, and other specialized insurance asset management institutions.
Article 15 Insurance funds may be invested in asset securitization products.
For the purpose of the preceding paragraph, “asset securitization products” means the financial products that are issued by financial institutions on the basis of credit enhancement through structuring and other means and backed by cash flow generated from underlying assets capable of being specialized.
Article 16 Insurance funds may be invested in venture capital funds and other privately offered funds.
For the purpose of the preceding paragraph, “venture capital funds” means private equity funds established according to the law, managed by qualified funds management institutions, and mainly investing in common shares or preferred shares that can be converted into common shares according to the law, convertible bonds and other equities of venture companies.
Article 17 Insurance funds may invest in the establishment of specialized insurance asset management institutions in such areas as real estate, infrastructure and pension, and specialized insurance asset management institutions may set up qualified insurance privately offered funds, and the specific measures shall be developed by the CIRC.
Article 18 Except as otherwise prescribed by the CIRC, an insurance group (holding) company or an insurance company shall not commit the following conduct in the utilization of insurance funds:
(1) Depositing insurance funds with non-banking financial institutions.
(2) Buying stocks under “special treatment” (ST) or “special treatment with delisting risk warning” (*ST) imposed by stock exchanges.
(3) Investing in the equities of an enterprise or real estate not in conformity with the national industrial policies.
(4) Directly engaging in the development and construction of real estate.
(5) Using the investment assets formed from the utilization of insurance funds to provide guarantee or grant loans, exception for granting personal policy-pledged loans.
(6) Other investments prohibited by the CIRC.
Article 19 In the utilization of insurance funds, an insurance group (or holding) company or an insurance company shall satisfy the ratio regulatory requirements of the CIRC, and the specific provisions shall be separately developed by the CIRC.
The CIRC may, in light of the actual circumstances of utilization of insurance funds, adjust the classification, varieties and relevant proportions, among others, of insurance assets.
Article 20 The utilization of funds of unit-linked insurance products and non-life investment insurance products with variable return shall be independent of the funds of other insurance products in terms of asset segregation, asset allocation and investment management, among others, and the specific measures shall be developed by the CIRC.
Section 2 Modes of Fund Utilization
Article 21 An insurance group (holding) company or an insurance company shall, according to the requirements of “centralized management, unified allocation, and specialized operation,” implement intensive and specialized management of insurance funds.
Insurance funds shall be under the unified management and utilization by the corporate institutions, and the branch offices thereof shall not engage in the utilization of insurance funds.
Article 22 An insurance group (holding) company or an insurance company shall select an eligible commercial bank or other professional institution to conduct third-party custody and oversight of utilization of insurance funds, and the specific measures shall be developed by the CIRC.
The insurance assets under custody shall be independent of the inherent assets of the custodial institution and other assets under custody of the custodial institution. Where a custodial institution is liquidated because it is legally dissolved, revoked, or declared bankrupt or for other reasons, the assets under its custody shall not be included in the liquidation property.
Article 23 The main duties of a custodial institution engaging in the custody of insurance funds shall include:
(1) Custody, clearing and settlement, and asset valuation of insurance funds.
(2) Oversight of investments.
(3) Disclosure of information to the relevant parties.
(4) Keeping trade secrets according to the law.
(5) Other duties as prescribed by laws, administrative regulations, the provisions issued by the CIRC, and the provisions of contracts.
Article 24 A custodial institution engaging in the custody of insurance funds shall not commit the following conduct:
(1) Misappropriating the funds under custody.
(2) Mixing the management of funds under custody and its own funds or mixing the management of funds in different custody accounts.
(3) Seeking illegal interests by making use of funds under custody and other relevant information.
(4) Other illegal conduct.
Article 25 To carry out utilization of insurance funds, an insurance group (holding) company, an insurance company or an insurance asset management institution shall have the corresponding investment management capability.
Article 26 An insurance group (holding) company or an insurance company may, in light of its investment management capability and risk management capability and according to the relevant regulatory provisions, make investment itself or authorize a qualified investment manager to make investment as trustee.
For the purpose of these Measures, “investment managers” means the insurance asset management institutions, securities companies, securities asset management companies, securities investment fund management companies and other professional investment management institutions which are legally formed and comply with the provisions issued by the CIRC.
Article 27 If an insurance group (holding) company or an insurance company authorizes an investment manager to make investment, the two parties shall enter into a written contract to agree upon the rights and obligations of both parties and ensure that the duties of the client, trustee and custodian are independent of one another.
An insurance group (holding) company or an insurance company shall perform the duties of developing guidelines for strategic allocation of assets, selecting trustees, overseeing the implementation by trustees, and assessing investment performance of the trustees, among others.
A trustee shall implement a client's asset allocation guidelines, build portfolios according to the characteristics of insurance funds, and fairly treat different funds.
Article 28 An insurance group (holding) company or an insurance company which authorizes an investment manager to make investment shall not commit the following conduct:
(1) Obstructing or interfering with the trustee's normal performance of duties.
(2) Requiring the trustee to provide information on other authorizing institutions.
(3) Requiring the trustee to guarantee a minimum investment return.
(4) Illegally transferring insurance profits or conducting other inappropriate tunneling.
(5) Other illegal conduct.
Article 29 An investment manager which is authorized to manage insurance funds shall not commit the following conduct:
(1) Making investment in breach of the contract.
(2) Unfairly treating different funds.
(3) Mixing the management of its own funds and trust funds or the funds of different authorizing institutions.
(4) Misappropriating the trust funds.
(5) Promising the authorizing institution a minimum investment return.
(6) Providing guarantee for others with insurance funds or assets formed from the investment of insurance funds.
(7) Transferring the trust funds to another trustee.
(8) Providing channel services for the authorizing institutions;
(9) Other illegal conduct.
Article 30 An insurance asset management institution may, according to the relevant provisions issued by the CIRC, conduct insurance asset management product business with the investment instruments within the scope of utilization of insurance funds as the underlying assets.
Where an insurance group (holding) company or an insurance company invests in, through a trustee, or purchases insurance asset management products, the insurance asset management institution shall, as agreed upon in the contract, disclose in a timely manner to the relevant parties the investment directions of funds, investment management, fund custody, risk management, major emergencies, and other information, and ensure the authenticity, accuracy, and completeness of the information disclosed.
The insurance asset management institution shall, according to the size and category of trust assets, product risk characteristics, investment performance, and other factors, enter into a contract with the authorizing or investing institution to agree on the standards for management fee income and the payment method thereof under the market-oriented principle.
The insurance asset management product business means the investment management activities conducted for the benefit of investors where the insurance asset management institution as the issuer and manager issues shares of products to insurance group (holding) companies, insurance companies, insurance asset management institutions and other qualified investors to raise funds and selects a commercial bank or any other professional institution as the custodian.
Article 31 An insurance asset management institution shall, when carrying out the business of insurance asset management products, carry out issuance, registration, custody, trading, settlement, information disclosure, relevant credit enhancement, collateral financing and other business in the asset registration platform recognized by the CIRC.
Where insurance funds invest in other financial products excluding insurance asset management products, the information on financial products shall be registered and disclosed on the asset registration and trading platform recognized by the CIRC, and the specific operation shall be governed, mutatis mutandis, by the relevant provisions on insurance asset management products.
For the purpose of the preceding paragraph, “other financial products” means the financial products that are issued by commercial banks, trust companies, securities companies, securities investment fund management companies and other financial institutions in accordance with the relevant laws and administrative regulations and comply with the provisions of the CIRC.
Chapter III Decision-Making Operating Mechanisms
Section 1 Organizational Structure and Duties
Article 32 An insurance group (holding) company or an insurance company shall establish and improve corporate governance, specify in its bylaws and the relevant rules the duties of the shareholders' meeting, the board of directors, the board of supervisors, and the management in respect of utilization of insurance funds, and achieve the separation and checks among the decision-making power, operation power, and oversight power in the utilization of insurance funds.
Article 33 The board of directors responsibility system shall be applied to the utilization of insurance funds. The board of directors of an insurance company shall assume the ultimate responsibility for asset allocation, investment policies, risk control, and compliance management, mainly performing the following duties:
(1) Examining and finalizing the management rules for the utilization of insurance funds.
(2) Determining the management manners of utilization of insurance funds.
(3) Examining and finalizing the investment decision-making procedures and authorization mechanism.
(4) Examining and finalizing the strategic allocation plan of assets, annual asset allocation plan and relevant adjustment proposal.
(5) Deciding on significant investment issues.
(6) Examining and finalizing the investment strategies and operating proposals for new investment instruments.
(7) Establishing a performance evaluation system for fund utilization.
(8) Other relevant duties.
The board of directors shall set up special committees with corresponding functions such as investment decision-making, asset and liability management and risk management.
Article 34 Decisions of an insurance group (holding) company or an insurance company on investment through a trustee, investment in unsecured bonds, stocks, equities, and real estate, and other major issues related to the utilization of insurance funds shall be deliberated and adopted by the board of directors.
Article 35 The management of an insurance group (holding) company or an insurance company shall perform the following duties as authorized by the board of directors:
(1) Taking charge of the daily operation and management of the utilization of insurance funds.
(2) Establishing a communication and consultation mechanism between the insurance fund utilization department and the financial, actuarial, product, risk control, and other departments.
(3) Deliberating the strategic allocation plan of insurance assets, annual asset allocation plan and relevant adjustment proposal drafted by the asset management department and submitting them to the board of directors for examination and finalization.
(4) Organizing the implementation of the strategic allocation plan of assets and annual asset allocation plan finalized by the board of directors.
(5) Controlling and managing risks in the utilization of insurance funds.
(6) Other relevant duties.
Article 36 An insurance group (holding) company or an insurance company shall establish a special department of insurance asset management, which shall be independent of the financial, actuarial, risk control, and other operating departments and perform the following duties:
(1) Drafting the management rules for the utilization of insurance funds.
(2) Drafting the strategic allocation plan of assets, and annual asset allocation plan and relevant adjustment proposal.
(3) Implementing the strategic allocation plan of assets and annual asset allocation plan.
(4) Implementing the risk management measures for the utilization of insurance funds.
(5) Other relevant functions.
Where an insurance group (holding) company or an insurance company makes investment itself, the insurance asset management department shall be responsible for the daily investment and transaction management; or where it invests through a trustee, the insurance asset management department shall perform the duties of overseeing investment and evaluating investment performance, and other duties of a client.
Article 37 The insurance asset management department of an insurance group (holding) company or an insurance company shall have posts on, among others, investment research, asset liquidation, risk control, performance evaluation, and relevant safeguards, establish a firewall system, and achieve specialized and standardized operation under prescribed procedures.
Where an insurance group (holding) company or an insurance company makes investment itself, its insurance asset management department shall have posts directly related to the fund utilization business such as investment and transaction posts.
Article 38 The risk management department or a department with corresponding management functions of an insurance group (holding) company or an insurance company shall perform the following duties:
(1) Drafting the risk management rules for the utilization of insurance funds.
(2) Reviewing and monitoring the legality and compliance of the utilization of insurance funds.
(3) Identifying, assessing, tracking, controlling, and managing the risks in the utilization of insurance funds.
(4) Reporting, on a regular basis, the management of risks in insurance fund utilization.
(5) Other relevant functions.
Article 39 An insurance asset management institution shall have a chief risk management officer.
The chief risk management officer shall be a senior executive of the company who is responsible for organizing and directing the risk management of the insurance asset management institution with his or her duties covering all business processes of the insurance asset management institution, and shall independently report the relevant information, and submit recommendations for preventing and resolving significant risks, to the board of directors and the CIRC.
The chief risk management officer shall not take charge of investment management. If it is necessary to replace the chief risk management officer, a written statement on the reasons for the replacement of the chief risk management officer and his or her performance of duties shall be submitted to the CIRC at least five working days before the replacement.
Section 2 Fund Utilization Processes
Article 40 An insurance group (holding) company or an insurance company shall establish and improve the management rules and internal control mechanism for the utilization of insurance funds, specifying the connecting manners and operating standards for all processes and relevant posts and strictly separating the responsibilities of posts in the front, middle and back offices, and on a regular basis, inspect and assess the implementation thereof, to ensure clear powers and responsibilities, relative independence, and mutual checks and balance. The relevant rules shall include but not be limited to:
(1) the relevant asset allocation rules;
(2) the rules for investment research, decision-making, and authorization;
(3) the transaction and settlement management rules;
(4) the performance evaluation and assessment rules;
(5) the information system management rules; and
(6) the risk management rules.
Article 41 An insurance group (holding) company or an insurance company shall, on the level of independent juridical person, make general arrangements for both the domestic and the overseas markets, analyze the cost of insurance funds, cash flow, duration, and other debt indicators by comprehensively taking into account the solvency constraint, external environment, risk appetite, regulatory requirements, and other factors, and choose and allocate assets with corresponding risk return characteristics, duration and liquidity.
Article 42 An insurance group (holding) company or an insurance company shall establish a specialized analysis platform, research and develop models and rules covering the management of counterparties and selection of investment instruments by making use of external research results, and conduct real-time tracking and analysis of changes in the market, to provide basis for the decision-making in the utilization of insurance funds.
Article 43 An insurance group (holding) company or an insurance company shall establish and improve the rules for relatively centralized and hierarchical investment decision-making and authorization with a unity of powers and responsibilities, specifying the authorization manners, extents, standards, procedures, time limitations, and accountability, and inspect authorization and enforce accountability at each level.
Article 44 An insurance group (holding) company or an insurance company shall establish and improve an arm's length mechanism to effectively control the operational and moral risks associated with the relevant personnel, prevent the technical safety loopholes in the trading system, and ensure the compliance, fairness and effectiveness of the trading activities. The arm's length mechanism shall, at a minimum, include:
(1) implementing the centralized trading system and strictly separating investment decision making from execution of transactions;
(2) establishing the centralized trading monitoring system, warning system, and feedback system meeting the relevant requirements;
(3) establishing an adequate trading record system; and
(4) fairly treating different funds in account setting, research support, resource allocation, and personnel management, among others.
Insurance group (holding) companies and insurance companies carrying out securities investment business shall comply with the relevant laws and regulations on the securities industry, establish and improve the risk isolation mechanisms, implement the rules for the reporting of information on investment by relevant employees themselves and their direct relatives, and effectively prevent insider trading, utilization of undisclosed information for transaction, tunneling and other violations of laws and regulations.
Article 45 An insurance group (holding) company or an insurance company shall establish a performance evaluation system and evaluation criteria focusing on asset and liability management, conduct performance evaluation and attribution analysis of utilization of insurance funds on a regular basis, and promote long-term investment, value investment, and diversified investment to achieve the overall objectives of utilization of insurance funds.
Article 46 An insurance group (holding) company or an insurance company shall establish an information management system for the utilization of insurance funds to reduce or eliminate artificial manipulation factors, automatically identify, warn of, report, manage, and control risks in asset management, and ensure the understanding of the risk status in real time.
The information management system shall set thresholds of compliance and risk indicators, and solidify all the elements of risk monitoring into the relevant information technology systems to reduce operational risks and prevent moral risks.
The information management system shall have a comprehensive risk management database, collect and integrate the basic data of the market, record the original data on insurance fund management and investment transactions, and ensure the sharing of the information platform.
Chapter IV Risk Management and Control
Article 47 An insurance group (holding) company or an insurance company shall establish an organizational system and operating mechanisms for risk management in the utilization of insurance funds featuring full coverage, full monitoring, and participation by all staff, improve risk management technology and information technology systems, and classify, identify, quantify, and evaluate all kinds of risks through the management system and by auditing and other means to prevent and resolve risks.
Article 48 An insurance group (holding) company or an insurance company shall manage and control the risks of asset-liability mismatch, strengthen the cost-benefit management, duration management and risk budget on the basis of solvency constraint and liability features of insurance products, determine risk limits for the utilization of insurance funds, and assess and manage the risks of asset mismatch by gap analysis, sensitivity, scenario testing, and other approaches.
Article 49 An insurance group (holding) company or an insurance company shall manage and control liquidity risks, test the bearable level of liquidity risks and its own risk tolerance under different conditions according to the characteristics of insurance business and its risk appetite, and develop the management strategies, policies and procedures for liquidity risks to prevent liquidity risks.
Article 50 An insurance group (holding) company or an insurance company shall manage and control market risks, assess and manage interest rate risks, exchange rate risks and volatility risks in the financial market, establish effective market risk assessment and management mechanisms, and implement the market risk limits management.
Article 51 An insurance group (holding) company or an insurance company shall manage and control credit risks, establish credit risk management rules, track and assess credit risks in a timely manner, track and analyze the credit instruments held and the counterparties, and on a regular basis, organize back-testing.
Article 52 An insurance group (holding) company or an insurance company shall strengthen the management of inter-bank borrowing, bond repurchase, margin trading, and short selling, strictly control the financing scale and use of leverage, and refrain from speculation or investing short-term borrowings in assets with high risk and poor liquidity. Insurance funds may participate in trading in derivatives only for hedging of risks, and shall not be used for speculation, and the specific measures shall be developed by the CIRC.
Article 53 An insurance group (holding) company, an insurance company or an insurance asset management institution carrying out investment business or business of asset management products shall establish a system for persons responsible for risks and clarify the corresponding persons responsible for risks, and the specific measures shall be developed by the CIRC.
Article 54 Insurance group (holding) companies and insurance companies shall develop internal audit and external audit rules.
An insurance group (holding) company or an insurance company shall conduct internal audit of the utilization of insurance funds once a year at a minimum.
An insurance group (holding) company or an insurance company shall retain a qualified external professional audit institution to conduct annual special audit on the internal control of insurance funds.
The results of the aforesaid internal audit and annual audit shall be reported to the CIRC. The specific measures shall be developed by the CIRC.
Article 55 The senior executive in charge of investment, the head of the insurance fund utilization department, and persons at important posts of an insurance group (holding) company or an insurance company shall undergo departure audit before leaving their posts, and the audit results shall be reported to the CIRC.
Article 56 An insurance group (holding) company or an insurance company shall establish a risk disposal mechanism for the utilization of insurance funds, and prepare contingency plans to control and resolve hidden risks in a timely manner. In the case of substantial depreciation of investment assets or the failure of satisfaction of claims, it shall prepare a disposal plan and report to the CIRC in a timely manner.
Article 57 An insurance group (holding) company or an insurance company shall ensure that the relevant risk control posts and personnel have the rights to information and inquiry necessary for performing their duties and are entitled to consult and inquire about all the data, information, and details relevant to the utilization of insurance funds and observe meetings relevant to the utilization of insurance funds.
Article 58 The utilization of insurance funds of an insurance group (holding) company or an insurance company involving affiliated transactions shall comply with the laws, administrative regulations, national accounting rules and the relevant regulatory provisions of the CIRC.
Chapter V Supervision and Administration
Article 59 The CIRC shall regulate the utilization of insurance funds through a combination of on-site supervision and off-site supervision.
The CIRC may authorize its local offices to exercise the supervisory authority for the utilization of insurance funds.
Article 60 The CIRC shall, in light of the corporate governance structure, solvency, investment management capability and risk management capability, and according to the internal control and compliance scoring and other relevant supervisory rules, conduct categorized supervision, on-going supervision, risk monitoring and dynamic assessment of the utilization of insurance funds by insurance group (holding) companies and insurance companies.
The CIRC shall strengthen the capital constraint of insurance companies, determine the risk supervision indicator system of the utilization of insurance funds, and take corresponding regulatory measures according to the assessment results to prevent and resolve risks.
Article 61 The senior executive in charge of investment of an insurance group (holding) company or an insurance company and the directors, supervisors and senior executives of an insurance asset management company shall obtain the office qualification confirmation granted by the CIRC before taking offices.
The chief investment officer of an insurance group (holding) company or an insurance company shall be a senior executive in charge of investment.
The appointment of the chief investment officer and the primary person in charge of the asset management department of an insurance group (holding) company or an insurance company shall, within 10 working days after the appointment, be reported to the CIRC by the employer.
Article 62 The major equity investments of insurance group (holding) companies and insurance companies shall be reported to the CIRC for confirmation.
The specific measures for major equity investment shall be separately developed by the CIRC.
Article 63 The insurance asset management products issued by or launched through promotion by insurance asset management institutions shall be subject to confirmation, recordation or registration management.
Registration makes no material judgment on the investment value or risks of insurance asset management products.
Article 64 The CIRC shall have the authority to require insurance group (holding) companies and insurance companies to provide reports, statements, documents, and materials.
The reports, statements, documents, and materials shall be submitted in a timely, authentic, accurate, and complete manner.
Article 65 An insurance group (holding) company or an insurance company shall disclose the relevant information on the utilization of insurance funds according to the law. The major investment resolutions of the shareholders' meeting and the board of directors of an insurance group (holding) company or an insurance company shall be reported to the CIRC within five working days after the resolutions are made, except as otherwise specified by the CIRC.
Article 66 The CIRC shall have the authority to require insurance group (holding) companies and insurance companies to dynamically link the relevant data on utilization of insurance funds with the regulatory information system of the CIRC.
An insurance group (holding) company or an insurance company shall, according to the provisions of the CIRC, submit relevant data to the regulatory information system of the CIRC in a timely, accurate and complete manner.
Article 67 Where an insurance group (holding) company or an insurance company falls under one of the following circumstances in violation of the provisions of these Measures, the CIRC may restrict the forms and ratios of its utilization of insurance funds:
(1) Its solvency fails to satisfy the requirements of the CIRC.
(2) There is serious risk in its corporate governance.
(3) The utilization of funds violates the relevant provisions on affiliated transactions.
Article 68 Where an insurance group (holding) company or an insurance company violates the relevant provisions on the forms and ratios of utilization of funds, the CIRC shall order it to take corrective action within a prescribed time limit.
Article 69 The CIRC shall have the authority to hold regulatory interviews with the directors, supervisors, and senior executives of an insurance group (holding) company or an insurance company and the person in charge of the insurance asset management department thereof, requiring them to provide explanations on the utilization of insurance funds, risk control, internal management, and other relevant major issues.
Article 70 Where an insurance group (holding) company or an insurance company seriously violates the relevant provisions on utilization of funds, the CIRC may order adjustment of the person in charge and the relevant executives.
Article 71 Where an insurance group (holding) company or an insurance company which has seriously violated the relevant provisions on utilization of insurance funds is ordered to take corrective action within a prescribed time limit but fails to do so, the CIRC may decide to appoint relevant personnel to an overhaul team to overhaul the company.
Article 72 An insurance group (holding) company or an insurance company utilizing insurance funds in violation of the provisions of these Measures shall be subject to fine, restriction of the business scope, ordering cessation of new business or revocation of business permits and other administrative penalties by the CIRC, and the relevant responsible personnel shall be subject to warning, fine, revocation of office qualifications, prohibition from entering the insurance sector and other administrative penalties according to the law.
Where an administrative penalty is imposed, an insurance group (holding) company or an insurance company shall hold the relevant liable persons accountable.
Article 73 Where any other party to the utilization of insurance funds violates the relevant laws and administrative regulations and these Measures in participating in the utilization of insurance funds, the CIRC shall record its misconduct, and notify the industry authority of the violation; and if the circumstances are serious, the CIRC may notify insurance group (holding) companies and insurance companies that they may not conduct relevant business with the violator during three years, and impose administrative punishment on it according to the law after consultation with the relevant regulators.
Article 74 Where any staff member of the CIRC abuses power, neglects duties, or divulges trade secrets of the relevant entities or personnel to which he or she has access, the staff member shall be held liable according to the law.
Chapter VI Supplementary Provisions
Article 75 These Measures shall apply, mutatis mutandis, to the management and utilization of insurance funds by insurance asset management institutions and other investment managers.
Article 76 Where any rules of the CIRC provide otherwise for the utilization of funds of insurance group (holding) companies, captive insurance companies and other types of insurance institutions, such rules shall prevail.
Article 77 These Measures shall be subject to interpretation and amendment by the CIRC.
Article 78 These Measures shall come into force on April 1, 2018. The Interim Measures for the Administration of the Utilization of Insurance Funds (Order No. 9 [2010], CIRC) and the Decision of the China Insurance Regulatory Commission on Amending the Interim Measures for the Administration of the Utilization of Insurance Funds (Order No. 3 [2014], CIRC) issued by the CIRC respectively on July 30, 2010 and April 4, 2014 shall be concurrently repealed.