CIRC Strengthens Supervision Of Portfolio Management

The China Insurance Regulatory Commission (CIRC) has promulgated the Notice on Strengthening Supervision over Portfolio Management in respect of Insurance Asset Management (Notice) which came into force on 13 June 2016. The Notice imposes requirements on insurance asset managers' qualifications, the scope of underlying assets, and issuance and registration of portfolio products.

In addition to those requirements set out in the Notice on Issues regarding Trial Operation of Asset Management Product Business by Insurance Asset Management Companies which was issued by the CIRC in 2013, an insurance asset manager is now required to meet the following requirements:

1. it has been qualified to manage insurance funds for at least one year;