Here comes the supervision of grading and classification: the rating results are divided into 6 levels, and these behaviors will be downgraded
2023-11-17
On November 16th, the State Administration of Financial Supervision and Administration of China issued the "Interim Measures for the Supervision, Rating, and Classification of Trust Companies" (hereinafter referred to as the "Measures"). The Measures will standardize the hierarchical classification and supervision of trust companies, and establish five rating modules. The rating results are divided into 6 levels, and the higher the level, the greater the institutional risk and the greater the need for regulatory attention. To comprehensively evaluate the operational soundness and systemic impact of trust companies, effectively implement classified supervision, and promote the sustained, healthy operation and differentiated development of trust companies, the State Administration of Financial Supervision and Administration has formulated the "Measures" in accordance with relevant laws and regulations. The "Measures" establish five rating modules: corporate governance, capital requirements, risk management, behavior management, and business transformation, assigning score weights of 20%, 20%, 20%, 30%, and 10% respectively, and setting several factors for adjusting the initial evaluation scores and results. The Measures also mention that if a trust company encounters one of the following situations during the evaluation period, the regulatory authority may increase its initial evaluation score, including: for companies that continue to operate normally, the registered capital of the company increases by more than 10% (including); Assist regulatory authorities in risk management of other financial institutions; Other situations recognized by regulatory authorities. If one of the following situations exists, the initial evaluation result will be downgraded by one level, including: conducting multiple or large amounts of channel business to provide regulatory arbitrage for other financial institutions; Multiple sales of trust products to unqualified investors; Issue a large number of guarantee letters to trust product investors; Newly launched non-standard fund pooling business, etc. In addition, if one of the following situations exists, the initial evaluation results will be downgraded by two levels, including intentionally concealing significant matters or issues from regulatory authorities, resulting in serious consequences; Conducting multiple or extensive illegal related party transactions, resulting in the occupation of company assets or serious damage to the legitimate rights and interests of investors; If a major criminal case occurs, causing significant business risks or adverse social impacts, and the company actively eliminates or mitigates the harmful consequences of the criminal case discovered through self inspection, it can only be downgraded by one level. Divide the regulatory rating results of trust companies into six levels, ranging from 1 to 6. The larger the value, the greater the risk of the institution and the higher the level of regulatory attention required. Among them, the regulatory rating result is level 1, indicating that the trust company's operation and management are relatively sound in all aspects, and the problems encountered are relatively minor. It can be solved by improving daily operation and management, and has strong risk resistance ability. The regulatory rating result is level 2, indicating that the trust company's operation and management are basically sound in all aspects, with good risk resistance ability. There are some problems that need to be corrected in daily operation and management, which need to be paid attention to by the company and regulatory agencies. The regulatory rating result is level 3, indicating that there are some obvious problems in the operation and management of the trust company. Although it can basically withstand the risks and challenges brought by changes in the operating environment, if the existing problems are not corrected in a timely manner, it may lead to operational difficulties and deterioration of risk conditions. Therefore, special attention should be given and necessary regulatory measures should be taken. The regulatory rating result is level 4, indicating that there are many or more serious problems in the operation and management of the trust company that have not been effectively addressed or resolved, which is likely to affect its ability to continue operating
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：National Business Daily
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