Notice on Certain Issues Concerning Strengthening the Financial Supervision over Domestic Non-Insurance Economic Entities and Overseas Insurance Institutions of Insurance Institutions

关于加强对保险机构所属境内非保险类经济实体和境外保险机构财务监管若干事项的通知

Promulgating Institution: China Insurance Regulatory Commission

Document Number: Bao Jian Cai Kuai [2006] No. 701

Promulgating Date: 06/30/2006

Effective Date: 06/30/2006

颁布机关: 中国保险监督管理委员会

文   号: 保监财会[2006]701号

颁布时间: 06/30/2006

实施时间: 06/30/2006

To all insurance companies,

With a view to meeting the objective needs of the fast and sound development of the insurance industry, concretely fulfilling the financial supervision responsibilities over the insurance industry, perfecting the industry's financial supervision system featuring centralized administration, properly preparing for the coming implementation of the supervision over insurance group (holding) companies by consolidating their financial statements, effectively guarding against and resolving financial risks in the industry, and promoting the fast and sound development of the insurance industry, this Notice is hereby issued as follows on strengthening the financial supervision over domestic non-insurance economic entities and overseas insurance institutions (hereinafter referred to as the "Non-insurance and Overseas Institutions") of insurance companies (including group companies and holding companies):

  各保险公司:

  为适应保险业快速、健康发展的客观需要,切实履行对保险行业的财务监管职责,健全统一归口管理的行业财务监管体制,为下一步实施对保险集团(控股)公司的并表监管做好准备,有效防范和化解行业财务风险,促进保险业又快又好发展,现就加强对保险公司(含集团公司、控股公司)所属境内非保险类经济实体和境外保险机构(以下简称所属非保险和境外机构)财务监管工作有关事项通知如下:

1. It is imperative to establish a system for record-filing of management systems, and a system to report major financial matters.

(1) For the purpose of this Notice, the domestic non-insurance economic entities of insurance companies shall refer to a variety of economic entities other than insurance companies, insurance asset management companies, health insurance companies, and endowment insurance companies over which the insurance companies may exercise control, joint control, or exert significant influence. Such non-insurance economic entities shall include the banks, securities companies, trust companies, insurance intermediary agencies, and other economic entities or investment projects with independent operations and accounting under the insurance companies. The overseas insurance institutions of insurance companies shall refer to the overseas insurance business organizations over which the insurance companies may exercise control, joint control, or exert significant influence, including the branches established abroad but excluding non-profit organizations such as representative offices and business offices.

(2) The asset quality, financial status and business performance of the Non-insurance and Overseas Institutions of insurance companies are directly related to the asset safety and solvency of the insurance company as well as the entire industry, and therefore they are an important link in promoting the development and preventing the risks of the insurance industry. An insurance company shall establish a financial management system led by its accounting and finance department in close coordination with other relevant departments, incorporate the financial management activities of its Non-insurance and Overseas Institutions, such as accounting, financing, investment, distribution of returns on funds, budgeting, and performance appraisal, into the framework of its overall financial management, and concretely fulfill the financial supervision responsibilities over its Non-insurance and Overseas Institutions provided that the corporate governance principles are complied with.

(3) An insurance company shall establish and improve its asset management systems, strengthen the day-to-day management of long-term equity investments, especially the long-term equity of its Non-insurance and Overseas Institutions, and report relevant management systems and measures to the Finance and Accounting Department of the China Insurance Regulatory Commission ("CIRC") for record-filing. Relevant revised systems and measures shall also be reported to the CIRC in a timely manner to update the record-filing materials.

(4) An insurance company shall promptly report its major financial decisions and matters concerning long-term equity investments as well as the matters of its Non-insurance and Overseas Institutions that may have major influence on its financial status and solvency to the CIRC. Major financial decisions and matters concerning long-term equity investments shall include transfer of the equity of its Non-insurance and Overseas Institutions, investment in the establishment of or equity participation in a non-insurance economic entity or overseas institution, public listing and fund-raising by its Non-insurance and Overseas Institutions, etc. Matters that may have major influence on the financial status and solvency of the insurance company shall include serious losses or major debt restructuring of its Non-insurance and Overseas Institutions.

(5) An insurance company shall make more efforts in the cleaning up and rectification of its Non-insurance and Overseas Institutions that do not have the conditions to operate continually or can no longer conduct normal business activities (for instance, they have closed down business activities, their business licenses have been revoked, or they have been taken over by a regulatory body, etc.), and report relevant information to the CIRC in a timely manner.

    一、建立管理制度备案制度和重大财务事项报告制度。

  (一)本通知所称保险公司所属境内非保险类经济实体,是指保险公司能对其实施控制、共同控制或重大影响的除保险公司、保险资产管理公司、健康保险公司、养老保险公司之外的各类经济实体,包括保险公司所属银行、证券公司、信托公司、保险中介机构及其他独立经营、独立核算的经济实体或投资项目。保险公司所属境外保险机构,是指保险公司能对其实施控制、共同控制或重大影响的境外的保险营业机构,其中包括境外分支机构,但不包括在境外设立的代表处、办事处等非营业性机构。

  (二)保险公司所属非保险和境外机构的资产质量、财务状况、经营效益直接关系到保险公司和整个行业的资产安全和偿付能力,是促进保险业发展和防范保险业风险的重要环节。保险公司应当建立以财会部门牵头,相关部门密切配合的财务管理体制,将所属非保险和境外机构的会计核算、筹资、投资、资金收益分配、预算、业绩考核等财务管理活动纳入公司整体财务管理的框架中,在符合公司治理原则的前提下,切实履行对所属非保险和境外机构应尽的财务监督职责。

  (三)保险公司应建立健全资产管理制度,加强对长期股权投资尤其是所属非保险和境外机构的长期股权的日常管理,将有关管理制度和办法报保监会财务会计部备案。有关制度和办法修订后,应向保监会及时更新备案材料。

  (四)保险公司应当将其长期股权投资有关的重大财务决策、事项,以及所属非保险和境外机构有可能对保险公司财务状况和偿付能力产生重大影响的事项,及时向保监会报告。与长期股权投资有关的重大财务决策、事项包括:转让所属非保险和境外机构股权;投资设立或参股非保险类经济实体或境外机构;所属非保险和境外机构上市融资等。可能对保险公司财务状况和偿付能力产生重大影响的事项包括所属非保险和境外机构发生严重亏损或进行重大债务重组等。

  (五)对于不具备持续经营条件或已无法进行正常经营活动的所属非保险和境外机构(例如停业、被吊销营业执照或被监管部门接管等),保险公司应当加强清理整顿工作,并将有关情况及时向保监会报告。

2. It is important to establish systems for periodic reporting, external audit, and supervisory review of financial reports.

(1) All insurance companies shall submit the hardcopy and softcopy of the financial report of the previous fiscal year of their respective Non-insurance and Overseas Institutions to the Finance and Accounting Department of the CIRC by April 30 every year. Specifically, the financial reports of overseas insurance institutions shall be prepared separately in accordance with China's accounting standards and the accounting standards of the countries (regions) where the overseas insurance institutions are located.

(2) The financial reports of domestic non-insurance economic entities and the financial reports of overseas insurance institutions prepared in accordance with the accounting standards of the countries (regions) where they are located shall be audited by accounting firms.

(3) Where the Non-insurance and Overseas Institutions belong to holding institutions and do not carry out physical operations, the insurance companies shall submit the financial reports of the economic entities at a lower level managed and held by these Institutions at the same time when submitting the financial reports of these Institutions.

(4) Insurance companies are not required to submit financial reports for the Non-insurance and Overseas Institutions that do not have the conditions to operate continually or can no longer conduct normal business activities, but shall attach a special report in their submission to the CIRC to summarize and explain the operations, cleaning up and rectification or liquidation of such institutions during the previous fiscal year.

(5) The CIRC shall conduct supervisory review of the financial reports of the Non-insurance and Overseas Institutions of insurance companies in accordance with the law. Violations of State financial and accounting systems and supervision rules shall be investigated and dealt with by the CIRC according to its regulatory responsibilities. Matters beyond the scope of responsibilities and power of the CIRC shall be referred to other regulatory departments for investigation and handling.

    二、建立财务报告的定期报告、外部审计和监管审核制度。

  (一)各保险公司于每年4月30日前,向保监会财务会计部报送所属非保险和境外机构上一会计年度的财务报告的纸质文本和电子文本。其中,境外保险机构的财务报告应分别按照中国会计准则和境外机构所在国(地区)会计准则编制。

  (二)所属境内非保险类经济实体的财务报告和所属境外保险机构按所在国(地区)会计准则编制的财务报告应经会计师事务所审计。

  (三)所属非保险和境外机构本身属于控股管理机构,不从事实体经营的,保险公司在报送该所属机构财务报告的同时应报送其控股管理的下一级经济实体的财务报告。

  (四)不具备持续经营条件或已无法进行正常经营活动的所属非保险和境外机构可以不报送财务报告,但保险公司应当向保监会附送专题报告,汇总说明该类机构上一会计年度的经营情况、清理整顿情况或清算情况。

  (五)保监会依法对保险公司所属非保险和境外机构的财务报告实施监管审核。对违反国家财会制度和监管法规的,保监会将根据监管职责实施查处,不属于保监会职权范围内的事项,移送其他监管部门查处。

3. Miscellaneous

(1) All insurance companies that have invested in domestic non-insurance economic entities and overseas insurance institutions shall submit the following materials to the Finance and Accounting Department of the CIRC by August 15, 2006:

(a) List of Basic Information of Domestic Non-Insurance Economic Entities and Overseas Insurance Institutions of an Insurance Company (See Appendix);

(b) Long-term equity investment management systems and relevant internal management systems, such as financial management measures, for their Non-insurance and Overseas Institutions as formulated by the finance and accounting departments of the insurance companies; and

(c) The audited 2005 financial reports of their Non-insurance and Overseas Institutions. The softcopy of the reports shall be emailed to ac_jgc@circ.gov.cn.

(2) Issues encountered during the implementation hereof shall be promptly reported to the Finance and Accounting Department of the CIRC.

Contact persons: Guo Jing, Li Liling

Tel: 010-66286182, 66286183

Fax: 010-66288102

Appendix: List of Basic Information of Domestic Non-Insurance Economic Entities and Overseas Insurance Institutions of an Insurance Company (omitted)

June 30, 2006

    三、其他事项

  (一)凡投资有境内非保险类经济实体和境外保险机构的保险公司,应于2006年8月15日前向保监会财务会计部报送以下材料:

  1.所属境内非保险类经济实体和境外保险机构基本情况一览表(见附件);

  2.保险公司财会部门制定的长期股权投资管理制度、对所属非保险和境外机构的财务管理办法等相关内部管理制度;

  3.所属非保险和境外机构经审计后的2005年度财务报告。其中,电子文本通过电子邮件发送到ac_jgc@circ.gov.cn。

  (二)执行中遇到问题,请及时向保监会财务会计部报告。

  联系人:郭菁栗利玲

  电话:010-6628618266286183

  传真:010-66288102

  附件:所属境内非保险类经济实体和境外保险机构基本情况一览表（略）

二○○六年六月三十日