The main financial laws in my country's financial supervision include:
"People's Bank of China Law", "Commercial Bank Law", "Negotiable Instruments Law", "Guarantee Law", "Insurance Law" , "Securities Law", "Trust Law", "Securities Investment Fund Law", "Banking Supervision Law";
The main financial regulations include:
"Savings Management Regulations" , "Corporate Bond Management Regulations", "Foreign Exchange Management Regulations", "Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities", and "Measures for Penalties for Financial Violations".
"Renminbi Management Regulations", "Interim Regulations on the Board of Supervisors of Key State-owned Financial Institutions", and "Regulations on the Real-Name System for Personal Deposit Accounts".
"Regulations on Financial Asset Management Companies", "Regulations on the Cancellation of Financial Institutions", "Regulations on the Administration of Foreign-funded Insurance Companies", "Regulations on the Administration of Foreign-funded Banks", and "Regulations on the Administration of Futures Trading".
"Interim Measures for the Administration of Bond Issuance by Central Enterprises", "Regulations on Risk Disposal of Securities Companies", "Regulations on the Supervision and Administration of Securities Companies", etc.
Extended information:
The financial supervision system is the method and organizational system for the division of responsibilities and power distribution of financial supervision. The main international financial regulatory systems can be divided into dual-line multiple regulatory systems, first-line multiple regulatory systems and single regulatory systems.
The financial regulatory system is a product of the history and national conditions of each country. The basic principle for establishing the regulatory system model is to not only improve the efficiency of supervision and avoid excessive overlapping of responsibilities and mutual constraints, but also pay attention to the mutual constraints of power to avoid excessive concentration of power.
When regulatory power is relatively concentrated in one regulatory subject, a scientific and reasonable internal division of power and division of responsibilities must be implemented to ensure the correct exercise of regulatory power.
On April 27, 2018, the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" was officially released, which is referred to as "New Asset Management Regulations" in the industry.
The establishment of new asset management regulations that break rigid redemptions, prohibit multi-layer nesting, and inhibit channel businesses will push the development of the asset management industry back to its roots, with licensed institutions focusing on prudent investment strategies will usher in major strategic benefits.
If a country wants to develop its economy, the first issue is money. With money, government agencies can pay salaries to civil servants and implement various national policies. National agencies related to money are divided into two categories - —Financial institutions and government agencies.
1. Financial institutions
In financial institutions, the State Council is the big boss. It has three financial institutions under it - the Central Bank, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission.
(1) People's Bank of China
The People's Bank of China, referred to as the Central Bank. Her daily job is to print and issue banknotes, regulate currency circulation, and guide banking operations. Among them, guiding banking business is very important, because all major banks are directly exposed to money, and the banks themselves are divided into policy banks and commercial banks.
Policy banks - non-profit institutions, the country needs loans if it wants to carry out construction;
Commercial banks - profit-making institutions, closely related to the people, such as the four major banks: China Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, China Construction Bank.
The main currency managed by the above institutions is RMB, and foreign currencies are also managed by the central bank. However, she handed over this job to the Administration of Foreign Exchange, which specializes in foreign exchange management.
(2) China Banking and Insurance Regulatory Commission
The People’s Bank of China mainly regulates the economy by assigning work to banks, so the agency that supervises banks must mention the China Banking and Insurance Regulatory Commission, which mainly manages the daily routine of banks. Operations, such as a bank wanting to open a branch, changes in senior management within the bank, etc. The China Banking and Insurance Regulatory Commission also regulates non-bank financial institutions and insurance institutions.
In 2018, the National People’s Congress and the National People’s Congress merged the China Banking Regulatory Commission and the China Insurance Regulatory Commission into the China Banking and Insurance Regulatory Commission. This is because my country’s financial model has changed and has entered the development era of mixed operations. Cross-operations between various businesses are extremely frequent, and supervision overlaps and supervision Problems such as vacuum are serious. Some new financial institutions, such as wealth companies, require the coordination of two regulatory entities, otherwise there will be regulatory blind spots.
The central bank and the China Banking and Insurance Regulatory Commission have many business overlaps and often cooperate, but the specific work is still different. The central bank provides business guidance, while the China Banking and Insurance Regulatory Commission supervises operations.
(3) Securities Regulatory Commission
I am afraid that investors are familiar with the terms stocks, funds, and futures. The institutions that can specialize in these businesses are the elite of the elite, referred to as " The best of the best." If these institutions are not properly managed, financial market stability will be severely affected. The one who manages them is the China Securities Regulatory Commission.
For example: If a company wants to go public, it needs to go to the China Securities Regulatory Commission for approval. Only with the approval of the China Securities Regulatory Commission can the stock exchange be ready and the company can issue shares.
The central bank, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission each perform their own duties and manage their own affairs. They are all in a peer relationship. They are the national financial institution system.
2. Government agencies
The government must also have its own departments that manage money. Otherwise, how will the taxes collected be handled? How are civil servants paid? It is called the Ministry of Finance, and its main responsibilities are: setting tax policies, issuing national bonds, and managing government revenue and expenditures.
Because the Ministry of Finance is a national agency, its structure has typical government characteristics - a finance department is established in the provincial capital and a finance bureau is established at the local municipal level.
Their working model is also very simple: the Ministry of Finance sets policies, the Department of Finance implements them, and the Bureau of Finance implements them.
3. The relationship between the central bank and the Ministry of Finance
Both the central bank and the Ministry of Finance are under the leadership of the State Council. The central bank is in charge of monetary policy and the Ministry of Finance is in charge of fiscal policy.
When a country wants to manage the economy, it needs the cooperation of two institutions. For example, in the "deleveraging" in recent years, the central bank asked banks to "tighten", that is, to lend less money to enterprises, and the Ministry of Finance also had to follow suit. "Tightening" means that the government will have to spend less.
Summary of laws and regulations related to Internet finance:
According to the People’s Bank of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Finance, the State Administration for Industry and Commerce, the Legislative Affairs Office of the State Council, and the Bank of China Industry Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission.
The Cyberspace Administration of China jointly issued the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" (Yinfa [2015] No. 221, hereinafter referred to as the "Guiding Opinions") jointly issued on July 28, 2015.
The current legal Internet financial formats in my country include: Internet payment, online lending, equity crowdfunding, Internet fund sales, Internet insurance and Internet trust, and Internet consumer finance.
In addition to traditional laws, regulations, regulatory systems and policies, the regulatory provisions specifically for new business formats are mainly based on the People’s Bank of China’s No. 2 Document ("Measures for the Administration of Payment Services of Non-Financial Institutions") in 2010. The supervision of third-party payment institutions began (it is generally believed that the development and supervision of payment business is also a landmark event in the development of my country's Internet financial industry).
Document No. 221 ("Guidance") issued by ten ministries and commissions in 2015 is not only a comprehensive summary, sorting and confirmation of the Internet financial industry in recent years, but also a programmatic and "guidance" for the implementation of future regulatory policies. sex" document.
1. Regulations on P2P Internet microfinance
On August 23, 2011, the China Banking Regulatory Commission issued the "Notice on Risk Warnings Regarding Renren Dai" issued by the China Banking Regulatory Commission [2011] 254 No. 1, the notice pointed out that under the current tight bank credit situation, the PeertoPeer (P2P) credit service intermediary company has shown rapid development.
This type of intermediary company collects borrower and lender information, evaluates the borrower’s collateral, such as real estate, cars, equipment, etc., then matches them, and charges intermediary service fees.
Relevant media have made extensive reports on the operation and influence of such intermediary companies, which has attracted much attention. In this regard, the China Banking Regulatory Commission organized a special investigation and discovered a large number of potential risks and provided warnings.
It can be seen that the notice is only a risk warning document for Renrendai. At the inter-ministerial joint meeting of nine ministries and commissions on handling illegal fund-raising held on November 25, 2013, the central bank clearly defined illegal fund-raising in the P2P online lending industry.
It mainly includes three types of situations: capital pool model; illegal fund-raising risks caused by unqualified borrowers and Ponzi schemes.
2. Third-party payment regulations
On June 4, 2010, the People's Bank of China issued the "Measures for the Administration of Payment Services of Non-Financial Institutions" ([2010] No. 2). Article 1 of the Measures stipulates that the purpose of formulating the Measures is to promote the healthy development of the payment service market, regulate the payment service behavior of non-financial institutions, prevent payment risks, and protect the legitimate rights and interests of the parties.
Article 2 of the Measures clarifies that the non-financial institution payment services referred to in these Measures refer to non-financial institutions acting as intermediaries between payees and payers to provide some or all of the following monetary fund transfer services:
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(1) Online payment;
(2) Issuance and acceptance of prepaid cards;
(3) Bank card acquiring;
(4) Other payment services determined by the People's Bank of China.
The term “online payment” as mentioned in the Measures refers to the act of transferring monetary funds between payees and payees relying on public networks or private networks, including currency exchange, Internet payment, mobile phone payment, and fixed telephone payment. payment, digital TV payment, etc.
The term "prepaid card" as mentioned in these Measures refers to the prepaid value of goods or services issued for profit and purchased outside the issuing institution, including the use of magnetic stripe, chip and other technologies in the form of cards, passwords, etc. Prepaid cards issued.
The term "bank card acquiring" as mentioned in the Measures refers to the act of collecting monetary funds for bank card merchants through point-of-sale (POS) terminals, etc. The "Measures for the Administration of Payment Services of Non-Financial Institutions" is an important regulatory regulation for third-party payments.
3. Virtual Currency Regulations
On June 4, 2009, the Ministry of Culture and the Ministry of Commerce jointly issued the "Notice on Strengthening the Management of Virtual Currency in Online Games" (Wenshi issued [2009] No. 20), the notice stipulates strict market access and strengthens the management of online game virtual currency issuers and online game virtual currency transaction service providers.
Engaging in the business of "online game virtual currency transaction services" must comply with the relevant regulations of the competent commerce department on e-commerce (platform) services. In addition to purchasing with legal currency, online game operating companies are not allowed to provide online game virtual currency to users in any other way.
On July 20, 2009, the Ministry of Culture issued the "Declaration Guide for "Online Game Virtual Currency Issuance Enterprises" and "Online Game Virtual Currency Trading Enterprises" to apply for commercial Internet cultural units to engage in "online games" Provide operational guidance rules for the declaration and approval of the "Virtual Currency Issuance Service" business.
On September 28, 2008, the State Administration of Taxation's "Reply on the Collection of Personal Income Tax on Income Obtained by Individuals from Online Trading of Virtual Currencies" (Guo Shui Han [2008] No. 818) clarified the taxation of virtual currencies. deal with.
That is, the income obtained by individuals purchasing virtual currencies from players through the Internet and selling them to others at a markup is taxable income for personal income tax, and personal income tax should be calculated and paid according to the "income from property transfer" item.
In short, the introduction of a series of regulatory measures has further clarified the supervision of virtual currencies, but the regulatory measures are only limited to virtual currencies in games.
4. Crowdfunding Regulations
The U.S. Securities and Exchange Commission (SEC) recently approved a draft regulation for crowdfunding. Crowdfunding for the public was regulated in early 2012. Recognized by the Jumpstart Our Business Startups Act (JOBS Act).
That is, raising funds for various projects, undertakings and even companies on the Internet has been legally confirmed. This is an important measure taken by the U.S. government to regulate crowdfunding.
On September 16, 2013, the China Securities Regulatory Commission notified some companies on Taobao of suspected unauthorized issuance of stocks and stopped them.
The basis for the suspension is the "Notice of the General Office of the State Council on Severely Cracking Down on Issues Related to Illegal Issuance of Stocks and Illegal Operation of Securities Business" (Guobanfa [2006] No. 99), which stipulates that "any company shareholder is strictly prohibited from voluntarily or Entrust others to transfer stocks to the public in a public manner."
At this point, what is known as Chinese-style "crowdfunding", that is, the use of online platforms to issue stocks to the public, has been defined as "illegal securities activities" for the first time.
Although the crowdfunding model can help solve the financing difficulties of small, medium and micro enterprises, considering the current legal framework, domestic crowdfunding websites cannot simply copy the American model and must find a crowdfunding method that suits China's national conditions. The road is more realistic.
According to the "Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fund-raising", the crowdfunding model can easily violate the red line of illegality in form.
That is, making public recommendations through websites, promising certain returns, and absorbing funds from unspecified objects without permission, which constitutes illegal fund-raising.
The United States has legislated for crowdfunding. We can learn from the JOBS Act in the United States to regulate the crowdfunding model, but it still requires a step-by-step process.
5. Internet Insurance Regulations
On September 20, 2011, the China Insurance Regulatory Commission issued the "Measures for the Supervision of the Internet Insurance Business of Insurance Agents and Brokerage Companies (Trial) by the China Insurance Regulatory Commission" )》Notice of China Insurance Regulatory Commission [2011] No. 53)》.
The purpose of formulating these measures is to promote the standardized, healthy and orderly development of the Internet insurance business of insurance agencies and brokerage companies, and to effectively protect the legitimate rights and interests of policyholders, insureds and beneficiaries.
In May 2012, the China Insurance Regulatory Commission issued the "Announcement on Providing Risks to the Internet Insurance Business" (CIRC Announcement [2012] No. 7), which conducted a survey on the Internet insurance industry to the majority of policyholders. Risk warning.
In addition, on April 15, 2011, the China Insurance Regulatory Commission issued the "Internet Insurance Business Supervision Regulations (Draft for Comments)", and the Internet insurance supervision regulations will also be further improved in the near future.
In short, Internet financial innovations are emerging one after another. Innovation in Internet finance means the emergence of new financial models and the need for new regulatory regulations.
Moreover, the current regulatory regulations for Internet finance are not yet complete. Some Internet financial models have emerged, but the relevant regulatory provisions are still lagging behind, that is, there is a regulatory gap. It is expected that the regulatory authorities will improve the supervision of Internet finance-related fields as soon as possible.
6. Internet Banking Regulations
On June 29, 2001, the People's Bank of China issued the "Interim Measures for the Management of Online Banking Business", but it was abolished in 2007 and January 26, 2006 , China Banking Regulatory Commission promulgated the "Electronic Banking Business Management Measures" (CBRC Order No. 5, 2006).
The term “electronic banking business” as mentioned in the Measures refers to the use of communication channels or open public networks open to the public by commercial banks and other banking financial institutions, as well as dedicated self-service facilities or customers established by banks. Network, banking services provided to customers.
Electronic banking business includes banking business conducted using computers and the Internet (hereinafter referred to as online banking business), and banking business conducted using voice equipment such as telephones and telecommunications networks (hereinafter referred to as telephone banking business).
Banking services that use mobile phones and wireless networks (hereinafter referred to as mobile banking services), and other banking services that use electronic service equipment and networks to allow customers to complete financial transactions through self-service methods.
The "Measures for the Administration of Electronic Banking Business" is an important regulatory regulation for Internet banks.
Ministry of Justice--Measures for the Management of Electronic Banking Business
Peking University Legal Information Network-Yinfa [2016] No. 113
Ministry of Justice-Issued "About Improving the System" Guiding Opinions on the Supervision of Important Financial Institutions"