On 3 May 2018, the China Banking & Insurance Regulatory
Commission (CBIRC) issued a consultation draft paper on
'Regulations Governing Insurance Company Related Party
Transactions' (Consultation Draft), seeking comment and
feedback from the general public. The Consultation Draft sets out
draft measures, concerning related party transactions (RPT) for
insurance companies (Insurers) in the following areas of controls,
reporting, disclosure and supervision:
- Who is a Related Party? The
Consultation Draft clarifies definitions of corporations, natural
persons and organisations which may be related parties of an
Insurer.
- The Consultation Draft distinguishes
between two types of RPT – 'material' RPTs and
'common' RPTs. Using these distinctions, the Consultation
Draft assesses RPTs in various areas, including equity investment;
asset management; insurance business operations; transfer of
beneficial interests & rights; provision of services; and other
areas designated
