In order to optimize the cross-regional business model of trust companies, promote the reform, transformation and development of trust companies, and better serve the real economy, the China Banking and Insurance Regulatory Commission recently issued a Notice on regulating the relevant matters of the different departments of trust companies (hereinafter referred to as the Notice).

The "Notice" consists of eight articles, which regulate the relevant matters of the different departments of trust companies in accordance with the principles of reasonable layout, classified policies, leniency and moderation. First, comprehensively consider the actual development of the current trust industry and the needs of reform and transformation, and clarify the requirements for the establishment and management of different departments of trust companies. Second, trust companies are strictly prohibited from setting up off-site management headquarters, and trust companies that have set up off-site management headquarters are conditionally retained as required. The third is to clarify the regulatory responsibilities of the banking insurance regulatory bureau of the trust company and the banking insurance regulatory bureau where the different departments are located. The fourth is to set a reasonable rectification period, requiring the relevant trust companies to carry out rectification and other work in a stable and orderly manner.

The release and implementation of the Notice effectively make up for the shortcomings of trust supervision and is conducive to promoting the standardized and healthy development of the trust industry. In the next step, the CBRC will continue to strengthen the supervision and management of trust companies, and strive to improve the quality and efficiency of the trust industry to serve the real economy.

Managing Editor: Yuan Hao