In May 2019, China's Banking & Insurance Regulatory
Commission (CBIRC) published two formal determinations
(Determinations) via its official website. These Determinations
demanded that, in respect of certain breaches and within a
specified timeframe, two, named, breaching insurance companies
(Insurers) (i) undertake certain 'rectification' measures;
and (ii) hold individual employees accountable. Key elements of the
Determinations are:
- In respect of the Insurers'
shareholders (Shareholders), (i) changes to the Shareholders
register were neither filed with, nor approved by, relevant
regulators; (ii) freezing orders that had been directed at certain
Shareholders' holdings had not been notified to the Insurers;
and (iii) no record had been made in the Shareholders register in
respect of certain Shareholders' share pledges.
