Two Authorities Issue Measures for Supervision and Administration of Financial Infrastructure

Recently, the People's Bank of China (PBC) and the China Securities Regulatory Commission (CSRC) jointly issued the Measures for the Supervision and Administration of Financial Infrastructure (the "Measures"), which will take effect on October 1.

The Measures focus on regulating the operations of financial infrastructure by improving institutional rules concerning the operation, risk management, corporate governance and other matters related to financial infrastructure; specifying the criteria for identifying systemically important financial infrastructure, as well as macroprudential management requirements; and refining regulatory provisions relating to inspections, penalties, recovery, disposal, and exit mechanism in respect of financial infrastructure, with the aim of unifying regulatory standards for financial infrastructure and providing a foundational safeguards for the secure, stable, and efficient operation of financial markets. Among the key provisions, the Measures stipulate that financial infrastructure that involves or may involve a significant impact on the financial system, or is deemed necessary by relevant authorities, shall be subject to approval by the State Council prior to establishment. In cases involving foreign investment that affects or may affect national security of the People's Republic of China, a security review of the foreign investment shall be conducted in accordance with law.



(Source: http://www.pbc.gov.cn/tiaofasi/144941/144957/5798411/index.html)

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