Promulgated: November 18 2005Applicability: These Guidelines apply to personal businesses with terms of one year and above, including individual life insurance…
Promulgated: November 23 2005Effective: January 1 2006Applicability: The term "environmental impact assessment documents for construction projects" is…
Issued: September 17 2005Effective: January 1 2005Main contents: Pre-tax deduction is permitted according to actual circumstances where insurance companies…
Issued: October 11 2005Applicability: The term "insurance brokerages launching business in a different region" refers to insurance brokerages engaging…
Whilst China's new measures for environmental impact assessment are good news for the environment, these may cause problems for project owners by potentially delaying construction and even losing business opportunities if a public hearing is required.
In addition to elaborating the Tentative Measures for the Administration of Overseas Utilization of Foreign Exchange Insurance Funds, the Implementation Rules further establish the basic management structure, duties and responsibilities, their basic operations and management procedures, and their selection following market-oriented principles for the insurance company (the entrusting party), the investment management institution (the entrusted party) and the commercial bank (the custodian). The Implementing Rules also add new overseas products such as structured deposits, mortgaged-backed securities and money market funds. It also introduces independent third parties in supervising funds flow, internal control mechanisms, accounting, credit rating and assets evaluation.
New regulations dictating the investment of funds under the management of China's insurance companies will benefit consumers and the capital market alike, offering more diverse investment opportunities in tandem with more stringent risk management guidelines.
The Tentative Measures provides for investments in government bonds, financial bonds and enterprise/corporate bonds. It also specifically stipulates on new bond products as commercial bank financial bonds, international development organization renminbi bonds and short term financing bonds. In its risk control efforts, the Tentative Measures requires the establishment of a sound bond investment risk control system with a precise, scientific and effective business operation flow, a credit risk evaluation system for bond issuing parties and bonds, and an independent third-party custody system.