December 30, 2022 04:16 GMT
MNI BRIEF: Chinese Regulator Updates Trust Industry Rules
Trust firms should minimise risky shadow banking activities, serve the interests of beneficiaries, and not carry out private equity investment, according to new industry rules proposed by China Banking and Insurance Regulatory Commission (CBIRC) on Friday.
The new framework updates outdated regulation that had created unclear business boundaries, conflicts of interest, and the circumvention of asset management regulations, the CBIRC said. Under the proposal, asset service trusts will not be able to guarantee principal and income in any form. Members of the public have until January 30, 2023 to provide comments on the proposal.