Circular on Issuing the Accounting Standards for Insurance Companies
Circular on Issuing the Accounting Standards for Insurance Companies
Circular on Issuing the Accounting Standards for Insurance Companies
Bao Jian Fa [2012] No. 8
All insurance companies and insurance asset management companies,
To strengthen the management of the accounting work of insurance companies, regulate the financial behaviors of insurance companies and effectively prevent against and mitigate risks, the China Insurance Regulatory Commission has formulated the Accounting Standards for Insurance Companies, which are hereby issued for your implementation.
Accounting Standards for Insurance Companies
Chapter I General Provisions
Article 1 These Standards are formulated in accordance with the Insurance Law of the People's Republic of China, the Accounting Law of the People's Republic of China and other relevant laws and regulations for the purposes of strengthening the management of the accounting work of insurance companies, regulating the financial behaviors of insurance companies and effectively preventing against and mitigating risks.
Article 2 For the purpose of these Standards, insurance companies and insurance group companies mean the insurance companies and insurance group companies established respectively in accordance with the Insurance Law of the People's Republic of China and the relevant provisions of the China Insurance Regulatory Commission ("CIRC").
Article 3 An insurance company shall strengthen the management of its accounting work and, in the light of the company's development strategy, business scale, sales channels, product features and other conditions, establish the management mechanism and system for accounting work that conform to its own actual situation to effectively reduce control risks and improve the efficiency of financial operations.
Article 4 The chairman and general manager of an insurance company shall be responsible for the compliance of the company's accounting work and the authenticity and completeness of the accounting materials.
Article 5 An insurance group company shall abide by the Company Law and its articles of association in the guidance and management of the accounting work of its subsidiaries.
Article 6 The CIRC shall, according to the relevant laws and regulations as well as these Standards, regulate and assess the accounting work of insurance companies and the performance of duties by the personnel in charge of finance.
Chapter II Department and Personnel
Article 7 An insurance company shall set up an independent accounting department to perform the following duties:
(1) be responsible for accounting and preparing financial reports;
(2) be responsible for fund management;
(3) be responsible for budget management;
(4) be responsible for taxation management and foreign exchange management;
(5) be responsible for or participate in asset management, liabilities management, capital management and the management of valuable documents; and
(6) other duties required by the CIRC, as prescribed in the company's internal rules and by law.
In principle, the insurance company shall establish one accounting department to perform the aforesaid duties in a centralized manner. If several departments are established to perform the duties of accounting work as specified in the above Items (1), (2), (3) and (4) or if the functions as specified in the above Items (1), (2), (3) and (4) are adjusted among the relevant departments, the insurance company shall file a report with the CIRC.
Article 8 The branch of an insurance company shall establish an independent accounting department. The branch below the provincial level, which is of relatively small scale or is under centralized management, is not required to establish a separate accounting department, on the premise that the requirements on accounting management are satisfied and risks are effectively controlled.
Article 9 An insurance company shall employ a certain number of accounting personnel with professional qualifications aligned with its business scale, management model and risk status.
Article 10 The accounting department of the head office of an insurance company shall employ persons who are familiar with the theory and practice of insurance reserve assessment.
Article 11 The head office of an insurance company shall set up the system for managing the accounting personnel at all levels in a unified manner, which shall include the establishment of posts, post responsibilities, job qualifications, assessment methods, job rotation system, training system and system for managing the accounting personnel of the branches, etc.
Article 12 An insurance company shall establish the post for the person in charge of finance. The person in charge of finance shall exercise the duties and power prescribed in the Administrative Provisions on the Appointment Qualifications of Financial Principals of Insurance Companies and shall directly report to the board of directors and general manager of the company.
Article 13 An insurance company shall set up the post for the person in charge of the accounting department. The person in charge of the accounting department of the insurance company shall meet the following conditions:
(1) having a university degree or above;
(2) having more than five years of experience in accounting work or more than ten years of experience in economic and financial work;
(3) being familiar with the laws, regulations and regulatory provisions necessary for the performance of duties and having a sound professional background in accounting, finance, investment, actuary, risk management, etc.;
(4) holding a bachelor's degree or above in finance and accounting, or lawful domestic or overseas professional qualifications in the relevant areas such as accounting, finance, investment, actuary, or a domestic senior title in accounting or auditing;
(5) having the experience of working in the leading or management position in an enterprise or public institution or the state organs;
(6) being able to use the Chinese language proficiently at work; and
(7) other conditions provided by the CIRC.
Article 14 In case of any of the following circumstances, a person may not be employed as the person in charge of the accounting department of an insurance company:
(1) he has been sentenced to criminal punishment and not more than three years have passed since the expiration of the enforcement period;
(2) his job qualifications have been cancelled or revoked by the financial regulatory authority and not more than five years have passed from the date on which his job qualifications are cancelled or revoked;
(3) not more than two years have passed since he was subject to major administrative punishment imposed by the CIRC and other administrative departments;
(4) a lawyer or certified public accountant, or a professional person in an asset evaluation institution, certifying institution and other institution has his practice qualification revoked due to an illegal act or a disciplinary violation and not more than five years have passed from the date on which his practice qualification is revoked; or
(5) any other circumstances provided by the CIRC.
Article 15 In appointing the person-in-charge of the accounting work, an insurance company shall file a report with the CIRC within ten working days from the date on which the appointment decision is made.
Where there is need to designate a temporary person-in-charge of the accounting work, the insurance company shall file a report with the CIRC within ten working days from the date on which the appointment decision is made.
The term of office of the temporary person-in-charge of the accounting department may not exceed three months.
Where an insurance company establishes several departments to perform the duties of the accounting work as set out in Article 7 of these Standards, it shall report to the CIRC the qualifications of the person-in-charge for performing the duties as set out in Item (1).
Article 16 When reporting to the CIRC the qualifications of the person-in-charge of the accounting department, an insurance company shall submit the following materials:
(1) the resume of the person-in-charge of the accounting department of the insurance company (Appendix);
(2) the appointment decision of the insurance company;
(3) the photocopies of the resident identity card (passport), academic certificate, degree certificate, professional qualifications, certificate of the qualifications for professional and technical posts, and other relevant certificates of the person-in-charge of the accounting department;
(4) the off-office audit report; and
(5) other materials to be submitted as required by the CIRC.
In case no off-office audit is conducted, the original employer shall explain the reasons for not conducting the off-office audit.
Where the off-office audit or the explanation materials of the original employ cannot be provided, the person-in-charge of the accounting department shall issue a written explanation.
Article 17 Where the person-in-charge of the accounting department appointed by an insurance company fails to satisfy the relevant provisions, the CIRC will order the company to make corrections.
Article 18 The accounting personnel who is transferred or leaves office shall go through the handover formalities with the successor in accordance with laws and regulations of the State and the provisions of the company, and the handover procedures shall be supervised in accordance with relevant provisions.
Where the transfer or departure falls into the scope of off-office audit in accordance with laws and regulations of the State and the provisions of the company, an off-office audit shall be conducted.
Article 19 The person-in-charge of the accounting department who is transferred or leaves office shall simultaneously send to the CIRC the documents related to his appointment or removal.
Article 20 An insurance company shall establish a training system for the accounting personnel and organize them to receive continuing education in accordance with the relevant provision of the State, including the training organized or recognized by the CIRC.
Article 21 An insurance company shall implement the system for appointing the financial managers for its branches.
......
Bao Jian Fa [2012] No. 8
All insurance companies and insurance asset management companies,
To strengthen the management of the accounting work of insurance companies, regulate the financial behaviors of insurance companies and effectively prevent against and mitigate risks, the China Insurance Regulatory Commission has formulated the Accounting Standards for Insurance Companies, which are hereby issued for your implementation.
Accounting Standards for Insurance Companies
Chapter I General Provisions
Article 1 These Standards are formulated in accordance with the Insurance Law of the People's Republic of China, the Accounting Law of the People's Republic of China and other relevant laws and regulations for the purposes of strengthening the management of the accounting work of insurance companies, regulating the financial behaviors of insurance companies and effectively preventing against and mitigating risks.
Article 2 For the purpose of these Standards, insurance companies and insurance group companies mean the insurance companies and insurance group companies established respectively in accordance with the Insurance Law of the People's Republic of China and the relevant provisions of the China Insurance Regulatory Commission ("CIRC").
Article 3 An insurance company shall strengthen the management of its accounting work and, in the light of the company's development strategy, business scale, sales channels, product features and other conditions, establish the management mechanism and system for accounting work that conform to its own actual situation to effectively reduce control risks and improve the efficiency of financial operations.
Article 4 The chairman and general manager of an insurance company shall be responsible for the compliance of the company's accounting work and the authenticity and completeness of the accounting materials.
Article 5 An insurance group company shall abide by the Company Law and its articles of association in the guidance and management of the accounting work of its subsidiaries.
Article 6 The CIRC shall, according to the relevant laws and regulations as well as these Standards, regulate and assess the accounting work of insurance companies and the performance of duties by the personnel in charge of finance.
Chapter II Department and Personnel
Article 7 An insurance company shall set up an independent accounting department to perform the following duties:
(1) be responsible for accounting and preparing financial reports;
(2) be responsible for fund management;
(3) be responsible for budget management;
(4) be responsible for taxation management and foreign exchange management;
(5) be responsible for or participate in asset management, liabilities management, capital management and the management of valuable documents; and
(6) other duties required by the CIRC, as prescribed in the company's internal rules and by law.
In principle, the insurance company shall establish one accounting department to perform the aforesaid duties in a centralized manner. If several departments are established to perform the duties of accounting work as specified in the above Items (1), (2), (3) and (4) or if the functions as specified in the above Items (1), (2), (3) and (4) are adjusted among the relevant departments, the insurance company shall file a report with the CIRC.
Article 8 The branch of an insurance company shall establish an independent accounting department. The branch below the provincial level, which is of relatively small scale or is under centralized management, is not required to establish a separate accounting department, on the premise that the requirements on accounting management are satisfied and risks are effectively controlled.
Article 9 An insurance company shall employ a certain number of accounting personnel with professional qualifications aligned with its business scale, management model and risk status.
Article 10 The accounting department of the head office of an insurance company shall employ persons who are familiar with the theory and practice of insurance reserve assessment.
Article 11 The head office of an insurance company shall set up the system for managing the accounting personnel at all levels in a unified manner, which shall include the establishment of posts, post responsibilities, job qualifications, assessment methods, job rotation system, training system and system for managing the accounting personnel of the branches, etc.
Article 12 An insurance company shall establish the post for the person in charge of finance. The person in charge of finance shall exercise the duties and power prescribed in the Administrative Provisions on the Appointment Qualifications of Financial Principals of Insurance Companies and shall directly report to the board of directors and general manager of the company.
Article 13 An insurance company shall set up the post for the person in charge of the accounting department. The person in charge of the accounting department of the insurance company shall meet the following conditions:
(1) having a university degree or above;
(2) having more than five years of experience in accounting work or more than ten years of experience in economic and financial work;
(3) being familiar with the laws, regulations and regulatory provisions necessary for the performance of duties and having a sound professional background in accounting, finance, investment, actuary, risk management, etc.;
(4) holding a bachelor's degree or above in finance and accounting, or lawful domestic or overseas professional qualifications in the relevant areas such as accounting, finance, investment, actuary, or a domestic senior title in accounting or auditing;
(5) having the experience of working in the leading or management position in an enterprise or public institution or the state organs;
(6) being able to use the Chinese language proficiently at work; and
(7) other conditions provided by the CIRC.
Article 14 In case of any of the following circumstances, a person may not be employed as the person in charge of the accounting department of an insurance company:
(1) he has been sentenced to criminal punishment and not more than three years have passed since the expiration of the enforcement period;
(2) his job qualifications have been cancelled or revoked by the financial regulatory authority and not more than five years have passed from the date on which his job qualifications are cancelled or revoked;
(3) not more than two years have passed since he was subject to major administrative punishment imposed by the CIRC and other administrative departments;
(4) a lawyer or certified public accountant, or a professional person in an asset evaluation institution, certifying institution and other institution has his practice qualification revoked due to an illegal act or a disciplinary violation and not more than five years have passed from the date on which his practice qualification is revoked; or
(5) any other circumstances provided by the CIRC.
Article 15 In appointing the person-in-charge of the accounting work, an insurance company shall file a report with the CIRC within ten working days from the date on which the appointment decision is made.
Where there is need to designate a temporary person-in-charge of the accounting work, the insurance company shall file a report with the CIRC within ten working days from the date on which the appointment decision is made.
The term of office of the temporary person-in-charge of the accounting department may not exceed three months.
Where an insurance company establishes several departments to perform the duties of the accounting work as set out in Article 7 of these Standards, it shall report to the CIRC the qualifications of the person-in-charge for performing the duties as set out in Item (1).
Article 16 When reporting to the CIRC the qualifications of the person-in-charge of the accounting department, an insurance company shall submit the following materials:
(1) the resume of the person-in-charge of the accounting department of the insurance company (Appendix);
(2) the appointment decision of the insurance company;
(3) the photocopies of the resident identity card (passport), academic certificate, degree certificate, professional qualifications, certificate of the qualifications for professional and technical posts, and other relevant certificates of the person-in-charge of the accounting department;
(4) the off-office audit report; and
(5) other materials to be submitted as required by the CIRC.
In case no off-office audit is conducted, the original employer shall explain the reasons for not conducting the off-office audit.
Where the off-office audit or the explanation materials of the original employ cannot be provided, the person-in-charge of the accounting department shall issue a written explanation.
Article 17 Where the person-in-charge of the accounting department appointed by an insurance company fails to satisfy the relevant provisions, the CIRC will order the company to make corrections.
Article 18 The accounting personnel who is transferred or leaves office shall go through the handover formalities with the successor in accordance with laws and regulations of the State and the provisions of the company, and the handover procedures shall be supervised in accordance with relevant provisions.
Where the transfer or departure falls into the scope of off-office audit in accordance with laws and regulations of the State and the provisions of the company, an off-office audit shall be conducted.
Article 19 The person-in-charge of the accounting department who is transferred or leaves office shall simultaneously send to the CIRC the documents related to his appointment or removal.
Article 20 An insurance company shall establish a training system for the accounting personnel and organize them to receive continuing education in accordance with the relevant provision of the State, including the training organized or recognized by the CIRC.
Article 21 An insurance company shall implement the system for appointing the financial managers for its branches.
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