Author: Zhejiang University Guanghua Law School Li Youxing Pan Zheng Hou Lingxiao Shao Yulu Pan Zhifeng Jiang Jiayi

Article 22: Various organizations participating in financial activities should be cautious Assess their own risk tolerance, establish and improve risk management systems and internal accountability systems, and implement the main responsibilities of financial risk disposal.

[Purpose of the Article]This article is about the prudent operation of local financial organizations

【Interpretation】

Various local financial organizations and other organizations engaged in financial activities are the forefront of the battle to prevent and resolve major risks. Various organizations participating in financial activities must implement the main responsibilities of financial institutions for risk prevention, strictly abide by relevant national and provincial regulations, improve organizational governance structures, continue to strengthen the construction of comprehensive risk management systems, improve the construction of enterprise risk management systems and mechanisms, and in accordance with In accordance with the requirements of prudent operation, we must establish and strictly implement management systems and business rules such as internal control, risk provisions, liquidity management, risk isolation, and related transaction regulations.

Article 23 People’s governments at or above the county level shall establish financial risk management systems Prevent and resolve working mechanisms, strengthen coordination with agencies dispatched by the central financial management department, take the lead in cracking down on illegal fund-raising, illegal financial activities, illegal financial institutions, etc. in accordance with the law, and deal with financial risks in a timely and secure manner.

The Provincial People's Government should establish and improve a financial risk monitoring and prevention system, integrate and utilize Various financial monitoring data information, grassroots social governance grid investigation information, and government and relevant department supervision and management data information provide real-time monitoring, identification, early warning and prevention of financial risks.

[Purpose of the Article]The first paragraph of this article is about local government risk prevention and territorial management of disposal; the second paragraph of this article is about the financial risk monitoring and prevention system

【Explanation of Articles】

1. Local government risk prevention and disposal working mechanism

Strengthening territorial risk disposal responsibilities is a clear requirement of the Fifth National Financial Work Conference. People's governments at or above the county level are responsible for territorial financial risk prevention and The person in charge of disposal responsibility. People's governments at or above the county level should strictly implement territorial management responsibilities, establish and improve working mechanisms to combat illegal fund-raising, illegal financial activities, illegal financial institutions, etc., strengthen risk management coordination and cooperation among various government departments, and handle local financial risks in a timely and secure manner. In the prevention and treatment of specific risks, we must also strengthen early warning and monitoring, formulate local financial emergency contingency plans, and make full use of big data and other methods for scientific supervision.

In addition, people's governments at or above the county level must strengthen coordination and cooperation with agencies dispatched by the central financial management department to form a joint regulatory force. In the field of financial supervision in my country, there are forms such as central power, local power, joint power and entrusted power. Under the unified deployment of the central government, the "Zhejiang Province Local Financial Regulations" ensure the stability and continuity of the division of central and local power, but in specific cases In the process of risk treatment and resolution, local financial regulatory agencies still need to coordinate and cooperate with the central financial management department and its dispatched agencies. In fact, although the financial organizations under the jurisdiction of the central financial management department are mainly supervised by the central financial management department and its dispatched agencies, these financial organizations are undoubtedly closely related to the development of local economies and enterprises. They are established within the scope of Zhejiang Province. The starting point of the branch is also to serve the development of the local economy, and the risks generated will also affect the overall local economic and social situation. Therefore, it is necessary for the regulations to stipulate the risk prevention and resolution of these financial organizations under the jurisdiction of the central financial management department in order to establish an effective coordination and cooperation mechanism.

2. Financial risk monitoring and prevention system

Establishing a financial risk monitoring and prevention system is to collect relevant data and information, monitor the changing trends of risk factors, and issue warnings in advance to prevent damage from occurring. . At present, the risk monitoring capabilities of local financial regulatory agencies are weak and unreasonable. my country's traditional financial regulatory agencies mainly supervise financial institutions through indicators such as solvency, which are also used as important indicators for risk prevention and control. However, local financial supervision is facing a completely new financial industry. These new financial institutions themselves have very limited funds, and their internal control mechanisms are not as sound as traditional financial institutions. At this time, big data technology should be used to build a more reasonable system for these new financial industries. Risk monitoring indicators, such as monitoring the flow and direction of funds, and risk monitoring of third-party custodians. Zhejiang Province has achieved remarkable results in financial risk prevention and control, and the "Drawing Net" system plays an active role. The so-called "Tianluo" mainly relies on various financial monitoring data information accessed by the Internet big data technology platform to carry out real-time monitoring of online financial risks, while the so-called "Ground Network" relies on the grassroots social governance grid management platform Conduct daily monitoring of offline financial risks by accessing investigation information and regulatory data information accessed by relevant management department platforms. The "Tian Luo Di Net" system integrates online and offline financial risk management resources, integrating Internet big data, grassroots grid investigation information and relevant management departments and other information channels, and will achieve all-weather, full process, and full coverage of financial risks. Monitor and promptly implement risk disposal responsibilities and feedback on disposal results, thereby preventing and controlling financial risks in the early stages.

Article 24 The business activities of local financial organizations may cause or If major financial risks have formed, the people's government of the city or county (city, district) where the district is located shall perform local risk disposal responsibilities in accordance with relevant national and provincial regulations, and organize and coordinate relevant departments to carry out risk disposal related work.

If the business activities of local financial organizations may cause major financial risks, the local financial supervision and management (work) department may take the following measures:

(1) Prompt risks to investors, creditors and other stakeholders ;

(2) Prompt relevant directors to the shareholders’ meeting (members’ meeting) ( Directors), supervisors, senior managers or operating management personnel’s employment risks;

(3) Other measures that may be taken as prescribed by laws and regulations.

Where the business activities of local financial organizations have caused major financial risks, local The financial supervision and management (work) department may also take the following measures:

(1) Seize property, seal up places, facilities or property;

(2) Coordinate with similar local financial organizations to receive continuing business or coordinate, Guide it to carry out market-oriented restructuring;

(3) Other measures that may be taken as prescribed by laws and regulations.

[Purpose of the Article]This article is about the regulations on the disposal of major financial risks

【Interpretation】

1. Major financial risk< /span>

The report of the 19th National Congress of the Communist Party of China proposed to improve the financial supervision system and maintain the bottom line of preventing systemic financial risks. Preventing the occurrence of systemic financial risks is the fundamental task of financial work, and proactive prevention and resolution of systemic financial risks must be placed in a more important position. Preventing and defusing financial risks is related to the national economy, overall development, and people's property security. It is a major hurdle that must be overcome to achieve high-quality development. The Central Economic Work Conference held in 2017 also pointed out that to prevent and resolve major risks, the focus is on preventing and controlling financial risks. From this perspective, the so-called major financial risks are essentially systemic financial risks, that is, the entire system (institutional system or market system) in which local financial organizations engage in financial activities or transactions suffers from the impact of external factors or internal factors. The possibility of severe fluctuations, crises or paralysis caused by the involvement of individual financial markets, resulting in the possibility of economic losses. First of all, systemic financial risks are risks that cannot be avoided through investment portfolios and tools in the market. The overall rise in systemic risks is extremely detrimental to the development of local financial markets and the real economy. Secondly, systemic financial risks are also highly contagious and have spillover effects that cannot be ignored. Cross-risk risks, in particular, are highly concealed and contagious and will seriously affect corporate financing costs and financing efficiency. Finally, systemic financial risks have accumulated too quickly and too much in a short period of time, and the stability of the financial system will be tested like never before. Therefore, among the "three tough battles" proposed by the central government, "preventing and resolving major risks" ranks first, and financial risks are one of the most prominent major risks. Preventing and resolving financial risks is regarded as the "primary" Battle”. The focus of local financial regulations is to prevent, resolve, and promptly handle systemic financial risks (major financial risks).

2.Responsibility for handling major financial risks

City and county (city, district) local governments divided into districts have information advantages that provincial governments do not have in risk management. Major financial risks that have occurred or may arise can be discovered in a timely manner and properly dealt with. Therefore, the article lists the responsibility setting for the disposal of major financial risks. On the premise that the provincial government and the provincial local financial regulatory bureau are the first responsible persons, it is mainly the city and county (city, district) where the local financial organization is located. The people's government shall specifically perform territorial risk disposal responsibilities.

3. Measures to deal with major financial risks

Measures to deal with major local financial risks are divided into two stages according to the risk status: those that may cause major financial risks due to business activities but have not yet caused major financial risks. Local financial organizations that face risks may (1) alert investors, creditors and other stakeholders of the risks; (2) alert the shareholders’ meeting (general meeting) of the relevant directors (directors), supervisors, senior managers or operating managers. Risks of employment; (3) Other measures that can be taken as prescribed by laws and regulations. For local financial organizations that pose major financial risks to their business activities, in addition to the above three measures, they can also take the following more serious measures: (1) Seize property, seal places, facilities or property; (2) Coordinate similar measures Local financial organizations take over existing businesses or coordinate and guide them to carry out market-oriented restructuring; (3) Other measures that can be taken as prescribed by laws and regulations.

Risk warning system, means that the local people's government or local financial regulatory agencies can, if necessary, Local financial organizations that may cause or have formed major financial risks shall separately or simultaneously take risk warnings to investors and other stakeholders, and remind the shareholders’ meeting of the employment risks of relevant directors, supervisors, and senior managers to warn and resolve potential risks. significant financial risks. Specifically, in these Regulations, "(1) Prompt risks to investors, creditors and other interested parties; (2) Prompt the shareholders' meeting (general meeting) of the positions of relevant directors (governors), supervisors, senior managers or operating managers" Two types of measures for “risk”.

Administrative enforcement measures, including seizing property, sealing places, facilities or property, etc. Administrative coercive measures for financial supervision are the embodiment of administrative coercive measures in the field of financial administrative supervision. They certainly have some common features of administrative coercive measures, namely administrative powers and state coercion. At the same time, they are endowed with certain characteristics by the law and have some characteristics. its own characteristics. Generally speaking, administrative coercive measures in financial supervision refer to financial administrative supervision agencies taking measures in accordance with the law, in order to achieve certain financial administrative supervision purposes, to enforce the behavior or property of counterparties who do not perform their statutory obligations in accordance with the law, forcing them to Fulfill corresponding obligations. According to the provisions of Articles 9 and 10 of my country's "Administrative Enforcement Law", if no laws or administrative regulations have been formulated and it is a local matter, local regulations may set the provisions of Items 2 and 3 of Article 9 of this Law. Administrative enforcement measures, namely "(2) Seizing places, facilities or property" and "(3) Seizing property". The "Local Financial Regulations of Zhejiang Province" comply with the provisions of the law and set up administrative coercive measures for financial supervision that comply with the provisions of the law. For local financial organizations that have formed major financial risks, administrative coercive measures such as seizing property and sealing up sites, facilities or property can be taken .

Acceptance system. The takeover system refers to an administrative act whereby when a local financial organization encounters operating difficulties and has caused major financial risks, the local people's government or local financial regulatory agency suspends its operation and management rights in accordance with the law and temporarily transfers it to a similar local financial organization to take over the existing business. It aims to restore the operating capabilities of the taken over business and avoid damaging the legitimate rights and interests of customers and expanding financial risks. The takeover system has the following four characteristics: First, the takeover decision of a local financial organization is made by the local people's government or local financial regulatory agency in accordance with relevant laws and regulations; secondly, the core of the takeover by a local financial organization is to transfer the continued business operations of the taken over institution. management rights; thirdly, the receiver is a local financial organization engaged in similar business as the institution being taken over; finally, the goal of the takeover is to restore the normal operating capabilities of the local financial organization's continued business and protect the legitimate rights and interests of creditors and customers.

Reorganization. Reorganization refers to an economic and legal state in which local financial organizations have experienced significant financial risks due to business failure or other reasons. In order to prevent the spread of financial risks and protect the rights and interests of customers and creditors, a corporate equity structure is carried out reintegration. The essence of reorganization is the reconfiguration of ownership of local financial organizations. The goals of reorganization include: (1) Preventing secondary financial risks and market losses caused by the bankruptcy of local financial organizations; (2) Protecting the contractual rights of creditors and customers of financial organizations; ( 3) Maximize the market value and social value of the reorganized enterprise.

Article 25 If the business activities of institutions supervised and managed by the central financial management department may cause or have formed major financial risks, the people's governments at or above the county level shall coordinate relevant departments to assist the agencies dispatched by the central financial management department to carry out risk disposal related work.

The Provincial People's Government is responsible for rural cooperative financial institutions (including rural commercial banks, The people's governments of cities and counties (cities, districts) where they are located shall cooperate with the risk disposal work of rural cooperative banks and rural credit cooperatives.

If the state has other provisions on the risk prevention and disposal responsibilities of financial institutions, Follow its regulations.

[Purpose of the Article]The first paragraph of this article is about the provisions on the risk disposal work of centrally managed financial institutions; the second paragraph of this article is about the provisions on the risk disposal work of rural financial institutions.

【Interpretation】

Adhere to the division of labor and positioning between the central and local governments in financial risk management, and adhere to the central government's unified management of centrally managed financial institutions and the financial industry. The basic premise for local financial risk prevention and disposal. The Third Plenary Session of the 18th Central Committee of the Communist Party of China adopted the "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reforms", proposing to "implement financial regulatory reform measures and sound standards, improve regulatory coordination mechanisms, and define central and local financial regulatory responsibilities and risk disposal" responsibility. ”This is the first time that the central government has requested in the form of a document to define the responsibilities of the central and local governments in financial supervision and risk management, requiring local governments to assume greater responsibilities and take greater initiative in financial supervision and risk management. But at the same time, the "regional" principle of local government's financial powers must be clarified. Local governments can only perform supervisory duties on local financial organizations and local financial markets, and must adhere to the unified management of the central financial industry by central financial management departments. In addition to the financial organizations authorized by the central government and supervised by local governments, as well as the "7+3+1+X" local financial organizations specified in the "Zhejiang Province Local Financial Regulations", the rest such as the banking industry, securities industry, insurance industry, trust industry, etc. are regulated by law. The financial institutions that are clearly stipulated in the regulations and supervised and managed by the central financial regulatory department are all "institutions supervised and managed by the central financial regulatory department" stipulated in this article, that is, centrally regulated financial institutions. The risk management of centrally managed financial institutions is mainly responsible for the central financial management department and its dispatched agencies. This is a natural move to adhere to the reasonable allocation of central and local powers and responsibilities. However, it must be noted that even the financial risks caused by centrally managed financial institutions , also has a certain territorial nature, and will also affect the overall situation of local economic and social stability. People's governments at or above the county level should actively coordinate relevant departments to assist the agencies dispatched by the central financial management department to carry out risk management-related work in accordance with relevant national and provincial regulations.

In addition, according to the unified deployment of the central government, the risks of rural cooperative financial institutions (including rural commercial banks, rural cooperative banks, and rural credit cooperatives) The resolution work is also mainly undertaken by local governments. The regulations stipulate that the provincial people's government shall bear the overall responsibility, and the people's governments of cities and counties (cities, districts) where financial institutions are located shall cooperate.

Article 26 If a legal person financial institution whose registration place is within the administrative region of this province has the following circumstances, it shall promptly report the relevant information to the people's government of the place of registration and the provincial local financial supervision and management department: span>

(1) Imbalance in corporate governance structure;

(2) Change of controlling interest or actual controller;

(3) Major occurrences of the board of directors (board of directors) or management Adjustment;

(4) Major changes in business model;< /strong>

(5) The place of registration and actual place of business have changed;

(6) Major litigation matters occur;

(7) Other situations that may cause major financial risks.

For legal person financial institutions that have the circumstances specified in the preceding paragraph, the people of the place of registration The government and provincial and local financial supervision and management departments should strengthen the monitoring and prevention of financial risks.

[Purpose of the Article]This article concerns the risk information reporting system of local financial organizations

【Explanation of Articles】

The local financial organization risk information reporting system is an important measure for the local financial risk prevention and control early warning system, aiming to give full play to the subjectivity of local financial institutions Initiative, local financial institutions are required to report relevant situations that may cause major financial risks to the people's government of the place of registration and the provincial and local financial supervision and management departments. If there is any violation, they need to bear corresponding responsibilities and consequences. Local financial regulatory agencies can withdraw from the complicated "minesweeping" work and concentrate on dealing with a series of problems that may arise before and after the emergence of financial risks. This will improve the efficiency of local financial risk prevention and control and reduce the cost of local financial risk prevention and control.

1. Imbalance in corporate governance structure . The term corporate governance structure originated from Western economics and refers to the property rights structure that adapts to the company, with investors and An institutional arrangement that connects and regulates the rights, interests, and responsibilities between shareholders, the board of directors, the board of supervisors, and managers based on the separation, division, and integration of operators. According to the provisions of my country's Company Law, a company establishes a shareholders' meeting, a board of directors, a manager, and a board of supervisors. The so-called imbalance of the corporate governance structure means that the strict structure formed by the shareholders' meeting, the board of directors, the manager, the board of supervisors and other parties does not form a good mutual check and balance and mutual coordination relationship, resulting in one party becoming more dominant and affecting the normal operation of the company. , and even disrupt the order of social and economic activities. Typical situations include the following: (1) There are several flaws and deficiencies in the company's director system; (2) Deficiencies in the managerial power system; (3) The supervisory role of the board of supervisors is lacking.

2. Change of controlling interest or actual controller< /strong>. Controlling rights refer to shareholders owning more than 50% of the company's shares or holding less than 50% of the shares but holding the largest proportion of shares, and therefore have the right to influence and control the company's operating activities. Controlling rights are divided into absolute holdings and relative holdings. The former refers to the absolute advantage in shares, which must be more than 50%. The latter means that although it does not reach 50%, it is a relatively majority shareholding among many shareholders, which is a relative controlling share. Controlling rights do not mean having control rights, because in addition to obtaining a controlling position in shares, others other than shareholders can often actually control the company through investment relationships, special contracts, agreements or other arrangements. We refer to this kind of ownership of the company. The natural person, legal person or other organization that has control is called the actual controller.

3. Major adjustments to the board of directors (board of directors) or operating management . Operating management usually refers to a group or group that is in a management position and has management responsibilities within a company, enterprise or organization Personnel, here specifically refers to senior managers, that is, executives. The operating management and the board of directors are permanent positions and institutions responsible for operating decision-making and daily operating management. Therefore, major adjustments in personnel may affect the continuity and stability of the company's operating performance to a certain extent, and may affect the continuity and stability of the company's operating performance through a series of creditor's rights and debt relationships. transmission, causing a major financial crisis. Therefore, major adjustments to the board of directors and operating management also require high attention. So, how to determine that there has been a major adjustment in the board of directors or operating management? In practice, major changes in directors or senior executives are regarded by the China Securities Regulatory Commission as an important review criterion for a company's IPO (initial public offering). According to Article 12 of the "Administrative Measures for Initial Public Offerings and Listing of Stocks", the issuer's changes in the last three years There have been no major changes in the main business, directors, and senior managers, and there have been no changes in the actual controller. Article 14 of the "Administrative Measures for the Initial Public Offering of Stocks and Listing on the GEM" stipulates that the issuer's main business and directors and senior managers have not undergone major changes in the past two years, and the actual controller has not changed. Despite this, relevant laws and regulations do not further clarify to what extent adjustments will be deemed "major adjustments." When identifying "major adjustments" to the board of directors or operating management, it is necessary to follow the identification principle of "substance over form" and grasp the stability of control rights, management and core personnel, and the continuity and stability of production and operations. Whether the sex has been significantly affected, and a sufficient and reasonable explanation or explanation shall be given based on verifying the basic facts.

4. Major changes in business model. A business model is a unique and effective way of providing products or services adopted by an enterprise. This method effectively meets the needs of specific customers and forms the core of the enterprise's competitive advantage. On the surface, a commercially successful business model meets the needs of customers, and its products and services achieve good sales results. On a deeper level, it actually means that the operation of the business model conforms to certain economic laws or principles. The relevant provisions of my country's securities supervision can help us understand what "major changes in business models" mean. In prospectuses and other documents, the company's main business is usually described as "the research and development, production and sales of certain types of products" or "providing certain types of products (or services or solutions) for customers in a certain industry". Judgment Whether the issuer's main business has changed, mainly from the following aspects: (1) There have been major changes in the products or services provided to the society; (2) There have been major changes in the source of income; (3) There have been major changes in the main business; (4) Significant changes in the company’s major assets and control rights.

Article 27: Non-financial enterprises have capital turnover difficulties or capital shortages If the non-payment of debts may cause or have formed major financial risks, the people's government of the city or county (city, district) where the non-financial enterprise is located shall be responsible for organizing and coordinating the relevant departments to carry out risk disposal related work.

The people's governments of cities and counties (cities, districts) divided into districts can Measures shall be taken to support the enterprises specified in the preceding paragraph in carrying out asset reorganization, coordinate with creditors to reach a consensus on debt disposal, and guide creditors in establishing creditor committees.

[Purpose of the Article]This Article Concerns Risk Disposal of Non-Financial Enterprises

【Interpretation】

This provision is aimed at the major financial risks that may arise from non-financial enterprises being insolvent or having capital turnover difficulties, and clarifies that local levels at all levels The people's government's coordination mechanism, division of responsibilities, and response work.

The non-financial enterprises that can cause major financial risks referred to in this article refer to enterprises with large scale, wide scope and high debt risk. , a large group company or listed company in Zhejiang Province that specializes in the production of market goods or the provision of non-financial market services. This provision applies to non-financial enterprises. The "financialization" of some non-financial enterprises has also become a weak link in risk prevention and control. Because some non-financial companies are too large and too closely connected, the complex creditor-debtor relationship has become a part of the financial system that cannot be ignored. If supervision is omitted, it is likely to trigger a major financial crisis from the debtor's side. The phenomenon that the change rate of common stock earnings per share is greater than the change rate of profit before interest and taxes when a company uses debt to raise funds is called financial leverage. The asset-liability ratio is one of the indicators of financial leverage. When companies obtain the benefits of financial leverage At the same time, it will bring certain financial risks. If an enterprise wants to obtain additional income through the effect of financial leverage, it must objectively analyze the impact of financial leverage on the enterprise. On the one hand, the relationship between a company's financial leverage and financial risks mainly depends on changes in the company's operating efficiency. When a company's pre-interest and tax profits are insufficient to pay debt interest, financial leverage will cause financial risks; on the other hand, a high debt ratio may cause Financing risks: Excessive debt pressure will cause borrowers or investors to worry, making it more difficult for companies to raise financing, which will lead to the occurrence of credit risks.

Article 28 may cause or have formed other major For financial risks, if the state has not specified the responsible unit for risk disposal, the people's government of the city or county (city, district) where the risk occurs shall be responsible for organizing and coordinating relevant departments to carry out risk disposal related work.

[Purpose of the Article]This article is about the financial risk provisions of the unit that does not specify the risk disposal responsibility

【Explanation of Articles】

This provision is a cover-up provision, which must be made clear for situations that have not yet been clearly stipulated but may cause or have formed major financial risks. It is the risk management responsible unit of the people's government of cities and counties (cities, districts) divided into districts. This provision can avoid the problem of vacancies without responsible units due to the occurrence of events not covered in the provisions. Effectively deal with the lag inevitably brought about by the stability of laws and regulations, as well as the limitations of legislators' subjective understanding and lack of predictability, meet the objective needs of adapting to social situations, and apply and resolve some new situations through this blanket clause. There is no need to amend the law, especially in the face of financial technology, a new business format that combines advanced technology with financial services. When regulatory legislation and regulatory measures have not caught up in time, the blanket clause clarifies the rights and responsibilities caused by financial technology. The prevention of major financial crises is particularly important.

Article 29: Cities and counties divided into districts (cities, If the district) people's government really has difficulties in handling the matter in accordance with the provisions of Articles 24, 27, and 28 of these Regulations, it may submit it to the people's government at the higher level for coordination.

[Purpose of the Article]This article provides basic provisions on the division of labor and coordination between governments in financial risk management

【Explanation of Articles】

Lower-level governments will always face situations beyond their ability to deal with financial risks. Many financial organizations that have caused major financial risks, Although they are located within a districted city or county (city, district) area, the business activities of these financial organizations may spread throughout the province, and the districted city or county (city, district) people's government alone is insufficient to deal with major financial risks. Moreover, judging from the current situation, the local people's governments of cities or counties (cities, districts) divided into districts face the challenge of insufficient regulatory capabilities. Not only are their manpower limited, but there is also considerable room for improvement in the professional level of financial regulatory personnel. Therefore, this article stipulates that when the people's government of a districted city or county (city, district) really has difficulty in handling major financial risks, it may request the higher-level people's government for coordination.

Article 30 When conducting Internet financial business, central financial management shall be observed Relevant regulations of the department.

People's governments at or above the county level and their relevant departments should coordinate with the central financial management The agencies dispatched by the departments jointly carry out Internet financial supervision and management, strengthen cooperation in information sharing, risk investigation and disposal, and jointly maintain social stability.

[Purpose of the Article]This article clarifies that the development of Internet financial business must comply with the relevant regulations of the central financial management department, and the collaborative supervision obligations of local people's governments and their relevant departments on Internet finance.

【Explanation of Articles】

The first paragraph of this article stipulates that the development of Internet financial business shall comply with the relevant regulations of the central financial management department. Internet finance is a new financial business model that uses the Internet and mobile communication networks to realize fund payment and settlement, investment financing, credit consumption and other behaviors online. It has outstanding characteristics such as small amount, decentralization, and multiple stakeholders. According to the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" (hereinafter referred to as the "Guiding Opinions"), Internet finance mainly includes Internet payment, online lending, equity crowdfunding, Internet fund sales, Internet insurance, Internet trust and Internet consumer finance, etc. The development of Internet financial services should comply with the relevant regulations of the central financial management department, which mainly means that the development of Internet payments should comply with the Anti-Money Laundering Law, the Electronic Signature Law, the Opinions on Regulating the Management of Commercial Prepaid Cards, and the Non-Financial Institutions Measures for the Management of Payment Services", "Measures for the Management of Prepaid Card Business of Payment Institutions", "Measures for the Depository Management of Customer Reserve Funds of Payment Institutions" and "Measures for the Management of Bank Card Acquiring Business"; when conducting online lending business, the "Online Lending Information Interim Measures for the Management of Business Activities of Intermediaries, "Guidelines for the Registration and Management of Online Lending Intermediaries", "Guidelines for Online Lending Fund Depository Business" and "Guidelines for Information Disclosure of Business Activities of Online Lending Information Intermediaries", etc.; as well as other and subsequent related supervision document.

The second paragraph of this article clarifies that people's governments at or above the county level and their relevant departments should conduct coordinated supervision of Internet finance. The "Guiding Opinions" clarify that "collaborative supervision" is one of the principles of Internet financial supervision. Depending on the type of Internet financial business, the entities with regulatory responsibilities are also different. The Internet payment business is supervised by the People's Bank of China; online lending, Internet insurance, Internet trust and Internet consumer finance and other businesses are supervised by the China Banking and Insurance Regulatory Commission; while equity crowdfunding and Internet fund sales are supervised by the China Securities Regulatory Commission. Therefore, local governments and their relevant departments are not the primary responsible body for the supervision of Internet financial businesses. Their main obligation is to coordinate the work of Internet financial supervision with the agencies dispatched by the national financial regulatory authorities. This paragraph specifically divides the collaborative supervision obligations of local governments into two categories: information sharing and risk investigation and disposal. On the one hand, local governments and their relevant departments have information such as industrial and commercial registration information of Internet financial institutions and online lending registration information. When necessary, they should share information with the agencies dispatched by the national financial regulatory authorities on Internet financial business supervision. On the other hand, local governments and their relevant departments have the advantage of coordinating and mobilizing resources and being close to the grassroots front lines in the risk investigation and disposal of Internet financial businesses within their jurisdictions. They should fully cooperate with the agencies dispatched by the national financial regulatory authorities when responding to risks, and actively prevent, Make every effort to resolve and properly handle issues such as instability in the financial sector.

Article 31 The local financial supervision and management (work) department may recommend relevant units to take the following measures based on the risk situation:

(1) Restrict legal representatives and actual control of local financial organizations in accordance with the law

(2) Restrict local financial organizations from transferring or transferring property or otherwise Other encumbrances are imposed on its property.

[Purpose of the Article]This article stipulates that provincial and local financial regulatory authorities have the right to recommend relevant departments to take measures to restrict exit or property transfer based on the risk situation of local financial organizations.

【Explanation of Articles】

Based on the risk situation, the provincial and local financial regulatory authorities may recommend that the immigration and entry-exit management authorities restrict the legal representatives, directors, supervisors, and senior managers of local financial organizations from leaving the country in accordance with the relevant provisions on entry-exit management; recommend that the public security organs and people's courts restrict local financial organizations from leaving the country in accordance with the law. A financial organization transfers, transfers property or creates other encumbrances on its property. This provision is in line with my country's legislative philosophy and current legislative status. There are similar provisions in the Civil Procedure Law and other financial law fields. Local financial regulatory authorities can only recommend restrictive measures and cannot directly impose restrictions. The following is a detailed discussion of the two restrictive measures:

1. Regarding measures to restrict exit

First, restrict those who can leave the country. The persons restricted from leaving the country under this article include directors, supervisors and senior managers. Directors refer to persons who are democratically elected by the company's shareholders (general meeting) or employees and have actual power and authority to manage the company's affairs. They are the main force in the company's internal governance. They manage the company's affairs internally and conduct economic activities on behalf of the company externally. Supervisors are members of the company's permanent supervisory authority, also known as "supervisors." They are responsible for monitoring the company's financial situation, the performance of the company's senior managers' duties, and other supervisory duties stipulated in the company's articles of association. Senior managers refer to the company’s managers, deputy managers, financial controllers, secretary to the board of directors of listed companies and other personnel specified in the company’s articles of association. Improving the ability of these three types of personnel to perform their duties is the cornerstone of establishing and improving corporate governance. When inspection matters are related to these three types of personnel, the provincial and local financial regulatory authorities can recommend restrictions on overseas travel based on risk conditions.

Second, the conditions for restricting exit. Provincial and local financial regulatory authorities may legally restrict the legal representatives, directors, supervisors, and senior managers of local financial organizations from leaving the country based on the risk situation and the immigration and entry-exit management authorities in accordance with the relevant regulations on entry-exit management. There are three main conditions for restricting travel abroad: first, directors, supervisors, and senior managers must be related to the reasons for inspection by local financial organizations. Second, failure to implement exit restrictions may affect the progress of progress inspections. Third, there is a possibility that directors, supervisors, and senior managers may escape or be difficult to contact once they leave the country. When entry and exit are restricted, notification obligations must be fulfilled in accordance with the law.

Third, procedures for restricting exports. The entry-exit border inspection authorities shall notify the national security organs, public security departments, procuratorial organs, people's courts, banks, tax authorities and other departments to restrict the entry and exit of specific entry-exit persons, especially those who have not violated any laws or committed crimes. Suspected witnesses and other counterparties should be reviewed by an independent judge, approved to take measures to restrict exit from the country, and the counterparty should be notified in a timely manner of the decision and time limit for the restriction to avoid unnecessary losses and harm to the counterparty. If the party whose entry and exit is restricted is dissatisfied with the behavior of his or her restricted entry and exit, the counterparty who is restricted from exiting and entering the country should be given the legal means to seek relief from the original decision-making authority, and file an administrative lawsuit or submit a claim for state compensation to the authority that made the decision to restrict the exit and entry. Relief; if the border inspection agency itself, when assisting in its duties, infringes upon the personal rights and property rights of persons subject to entry and exit restrictions due to its own mistakes, causing losses to the personal rights and property rights of persons subject to entry and exit restrictions, at this time, the party who suffered the loss shall Relief may be sought through administrative proceedings.

2. Measures to restrict the transfer, transfer of property or the establishment of other encumbrances on property

First, limit the scope of property. The property referred to in this clause includes all movable and immovable properties of local financial organizations. Specifically, it includes working capital, deposits, securities, claims, etc., as well as factories, machinery and equipment, inventory, etc. In addition, it should be noted that the following situations also belong to the property of local financial organizations: registered motor vehicles, ships and other specific properties; movable property owned by a third party, and the third party confirms in writing that the property belongs to the local financial organization; registered in For movable property in the name of a third party, the third party confirms in writing that the property belongs to a local financial organization.

Second, conditions that restrict the transfer or transfer of property or set other encumbrances on the property. When a local financial organization transfers or transfers property or sets other encumbrances on its property with malicious intent, the provincial and local financial regulatory authorities should recommend that the public security organs and people's courts take restrictive measures. There are three main conditions that need to be met: 1. The property belongs to the local government The property of financial organizations; 2. Local financial organizations are poorly managed and the remaining properties are insufficient to repay debts; 3. Local financial organizations transfer or transfer properties or set other encumbrances on their properties with malicious intent, which will cause greater risks. .

Third, the method of restricting the transfer, transfer of property or the creation of other encumbrances on the property. The relevant provisions of the Civil Procedure Law can be used for reference to restrict the transfer or transfer of property or to set other encumbrances on property, and the main methods are sealing, detaining, and freezing. (1) Seizure refers to a property preservation measure in which the people's court counts the property that needs to be preserved, affixes a seal, and seals it on the spot to prevent any unit or individual from disposing of it. Seizure refers to a property preservation measure in which the people's court moves the property that needs to be preserved to a certain place and detains it to prevent any unit or individual from disposing of it. When the people's court takes measures to seal up or detain property during property preservation, it shall properly keep the sealed or seized property. The party concerned may be responsible for keeping the seized property, but may not use it. When the property of a local financial organization is seized or seized, its legal representative or principal responsible person shall be notified to be present. The enforcement officer must make a list of the seized or impounded property, sign or stamp it with the signatures of those present, and submit a copy to the local financial organization in the province where the person is being enforced. The period for sealing up or detaining movable property shall not exceed two years, and the period for sealing up immovable property shall not exceed three years. (2) Freezing refers to a property preservation measure in which the people's court notifies relevant financial institutions in accordance with the law to prohibit the respondent from withdrawing or transferring his deposits. No unit or individual is allowed to use the money frozen by the people's court in accordance with the law. If the property has been seized or frozen, it shall not be seized or frozen again. The time limit for the people's court to freeze the bank deposits of the person subject to execution shall not exceed one year, and the time limit for freezing other property rights shall not exceed three years.

Article 32 Financial advertisements shall comply with the provisions of the Advertising Law of the People's Republic of China and other laws and regulations, provide reasonable reminders or warnings about possible risks and responsibilities, and shall not guarantee investment returns or investment effects. Commitments shall not express or imply guaranteed capital, guaranteed returns or no risk.

Non-public fundraising, and shall not be carried out through advertising, public solicitation, etc. Fund raising publicity.

[Purpose of the Article]This article mainly regulates the promotion of financial business and clearly prohibits public promotion of non-publicly raised funds.

【Explanation of Articles】

The first paragraph of this article clarifies the behavioral norms for publishing financial advertisements. The Advertising Law stipulates that advertisements must be true and legal, and must not contain false or misleading content, and must not deceive or mislead consumers. Advertisement publishers are obliged to check relevant supporting documents and verify the content of advertisements. In addition to complying with the Advertising Law, publishing financial advertisements must also comply with other relevant regulations, such as the "Guiding Opinions on Strengthening the Protection of Financial Consumer Rights and Interests" issued by the General Office of the State Council and the "Guiding Opinions on Strengthening the Protection of Financial Consumer Rights and Interests" issued by the Central Bank, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission. "Notice on Further Regulating Financial Marketing and Publicity", etc., including that financial products or financial services shall not be marketed in a fraudulent or misleading manner, untrue or inaccurate data and information shall not be quoted, and restrictions shall not be concealed ; Shall not make false or exaggerated statements about past performance; Shall not make guarantee promises about the future performance, income or related conditions of asset management products, expressly or implicitly guarantee capital, no risk or guaranteed income; Shall not use substituting concepts, inappropriate analogies, concealment Assumptions and other improper marketing promotion methods. In addition, publishing financial advertisements must also comply with the risk and responsibility reminders stipulated in these regulations, and shall not promise, express or imply specific requirements such as capital guarantee, investment income or risk-free.

The second paragraph of this article stipulates the prohibition of public promotion of non-publicly raised funds. According to Article 9 of the Securities Law, non-public issuance of securities shall not use advertising, public solicitation, or disguised disclosure. Article 91 of the "Securities Investment Fund Law of the People's Republic of China" further stipulates that private equity funds shall not promote and promote to unspecified objects through public communication media such as newspapers, radio stations, television stations, and the Internet, or through lectures, reports, analysis meetings, etc. In addition, some administrative regulations and departmental rules further prohibit the public promotion of raised funds. For example, the "Notice on Regulating the Development of Regional Equity Markets" issued by the General Office of the State Council stipulates that "the issuance or transfer of securities in regional equity markets... shall not use advertising, public solicitation or other public or disguised public methods to issue securities." , the "Notice on Severely Combating Issues Related to Illegal Issuance of Stocks and Illegal Operation of Securities Business" stipulates that "advertising, announcements, broadcasts, telephone calls, faxes, letters, promotion meetings, and briefings are not allowed for non-public issuance of stocks and equity transfers." , the Internet, text messages, public solicitation and other public methods or disguised public methods to the public"; "Corporate Bond Issuance and Transaction Management Measures", "Securities Company Subordinated Debt Management Regulations", "Project Revenue Bond Management Interim Measures", etc. It is clarified that non-public issuance of corporate bonds, securities company subordinated bonds, non-public issuance of project revenue bonds, etc. are not allowed to be publicized through advertising and public solicitation. The "Private Equity and Crowdfunding Measures" that have not yet been adopted and implemented also stipulate that financiers are not allowed to issue securities publicly or in disguised public ways, and are not allowed to issue securities to unspecified objects. Failure to meet the requirements of relevant laws and regulations, and public promotion of non-public funds without approval or registration from the relevant financial regulatory authorities may constitute illegal fund-raising as stipulated in Article 192 of the Criminal Law. According to the "Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising" issued by the Supreme People's Court in 2010, any behavior that violates the provisions of national financial management laws and absorbs funds from the public without the approval of relevant departments in accordance with the law, through the media, Promoting to the public through promotion meetings, leaflets, mobile phone text messages, etc., promising to repay principal and interest or provide returns within a certain period of time in the form of currency, physical objects, equity, etc., and absorbing funds from the public, that is, unspecified objects in society, constitutes illegal fund-raising.

Article 33 The people's governments of provinces and municipalities divided into districts shall formulate financial industry development plans for their respective administrative regions in accordance with the national economic and social development plans and the superior financial industry development plans. When formulating a financial industry development plan, opinions from the local branch of the central financial management department shall be solicited.

[Purpose of the Article]This article is about the preparation of financial industry development plans

【Explanation of Articles】

As an industry engaged in financing and credit activities, the financial industry mainly includes banking, securities, insurance, trusts, futures, private equity finance, Internet finance and other industries. It plays a fundamental role in optimizing resource allocation and regulating economic operations in the modern economy. Strengthening and enlarging the financial industry is not only an important guarantee for promoting economic development and maintaining economic security, but also an important measure to cultivate new economic growth points in Zhejiang Province and accelerate economic transformation and upgrading. When the people's governments of Zhejiang Province and districted cities organize and prepare the financial industry development plans in their respective administrative regions, they need to coordinate with the agencies dispatched by the central financial regulatory authorities, establish a coordination mechanism for local financial work, and coordinate the major reform and development of the local financial industry in the province. matters, solicit opinions from the agencies dispatched by the national financial regulatory authorities and relevant departments to promote local financial development. When preparing a financial industry development plan, the procedures that should be followed include: establishing a planning project, organizing a preparation team, collecting relevant information, evaluating the original plan, preparing a first draft of the plan, closely linking the plan, soliciting opinions from all parties, organizing plan modifications, and planning demonstration , submit plans for review and approval, release plans to the outside world, carry out plan evaluations, and plan revisions and abolitions, etc.

Article 34 The Provincial People’s Government shall strengthen financial opening up and Regional coordinated development, promoting exchanges and cooperation with international financial organizations, building an emerging financial center, and enhancing financial resource aggregation and radiation capabilities.

Cities and counties (cities, districts) that meet the conditions. In accordance with the overall layout of financial reform and innovation, the people's government shall submit corresponding supervision, management and risk prevention measures when applying for various financial reform and innovation pilot zones and pilot projects.

[Purpose of the Article]This article is about the regulations on the construction of financial clusters and financial reform experiments.

【Explanation of Articles】

Financial agglomeration area refers to a country's financial regulatory authorities, financial intermediaries, multinational financial enterprises, and domestic financial institutions A special industrial spatial structure formed by the geographical concentration of enterprises and other institutions with headquarters functions in specific areas and close contacts with other international (transnational) institutions, multinational companies, and the headquarters of large domestic enterprises. As a carrier of the development of the financial industry, the financial agglomeration area has powerful radiation and driving force, and is a powerful engine to promote the rapid development of the financial industry and even the regional economy. It not only provides a platform advantage for market entities to allocate resources, but also promotes the exchanges between enterprises in the region. Investment and cooperation have become one of the basic forms of the modern financial industry. In June 2019, the Zhejiang Province Digital Economy Development Leading Group released the "Zhejiang Province Emerging Financial Center Construction Action Plan", proposing to build an emerging financial center integrating financial technology, online financial security, online financial industry, and mobile payment to accelerate the formation of an emerging financial center. The construction pattern is based on the framework of "one bay (Qiantang River Financial Harbor), one city (Hangzhou International City of Science and Technology and Finance), one province (province of mobile payment), and multiple districts (regional financial reform pilot zone)".

“Zhejiang will comprehensively promote Wenzhou Financial Reform Comprehensive Pilot Zone, Ningbo National Insurance Comprehensive Innovation Pilot Zone, Taizhou Small and Micro Financial Reform Innovation Pilot Zone, Quzhou and Huzhou Green Finance Reform Pilot Districts and other characteristic financial reform work have formed multiple emerging financial regional central cities with distinctive regional characteristics, and exported replicable and scalable experience for financial reforms in various subdivisions across the country. ”Risk control is an eternal theme in the financial industry, the lifeline of local financial work, and the foundation and guarantee of financial reform and innovation. As an integral part of my country's macro-systemic financial risk prevention work, local financial risk prevention has the universal characteristics of macro-systemic financial risk prevention, but also has its unique local attributes. The special attributes of local finance determine the multiplicity of local financial risk prevention goals. On the one hand, the development of local finance must be consistent with the national macroeconomic goals, and the goals of local financial risk prevention must be consistent with the macroeconomic layout of the central financial regulatory authorities. On the other hand, local finance is the support of the local economy and is closely related to the regional economy. Therefore, relevant economic decisions should be based on the actual situation and local characteristics of the local government and take the overall local financial development into consideration.

Article 35: Encourage the development of multi-level capital markets. Local financial supervision and management (work) departments should promote enterprises to carry out standardized joint-stock restructuring, support enterprise listings, mergers and acquisitions and reorganizations, support enterprises to be listed on the National Equities Exchange and Quotations System and regional equity markets, and guide enterprises through equity investment, stock and bond issuance, etc. Financing, increasing the proportion of direct financing and improving the financing structure.

Local financial supervision and management (work) departments should guide and encourage securities service institutions Enhance the awareness of normative integrity and improve the efficiency of corporate listing services.

[Purpose of the Article]The purpose of this article is to promote the proportion of direct financing in the financial market and reduce China's traditional indirect financing methods, so as to achieve the effect of removing "high leverage ratio" and improve the financing structure.

【Explanation of Articles】

1. Direct financing method

First, stock and bond issuance. Equity financing model is an important financing model for emerging industries. Commercial banks must clarify the conditions for equity financing under the new normal economic model. Specific conditions include: risk controllability, process optimization, and strengthening innovation. Seize the opportunity, grasp the current PPP model, establish an innovative financial organization system for PPP finance through mixed ownership reform, and deepen the financial PPP financing system.

Loans and issuance of bonds are the two main ways of financing for companies and institutions. The "loan-to-debt" model has become the first choice for governments and enterprises. In particular, enterprises' financing through bond issuance has become the best alternative to loans. At the same time, compared with equity financing, debt financing generally does not cause the issue of control of the enterprise, except that it may cause the issue of creditor control and intervention in the enterprise in some specific circumstances.

Second, private equity investment. Private equity investment broadly includes any kind of equity investment that represents securities representing interests in invested assets that can neither be freely traded on a public exchange nor sold publicly. The equity here includes common stocks, convertible preferred stocks, convertible bonds, stock options, etc.

2. Improve financing structure

“The 13th Five-Year Plan clearly states "increase the proportion of direct financing and reduce the leverage ratio." The high macro-leverage ratio is an important issue that needs to be solved urgently as China moves towards high-quality development. China's high leverage problem lies in its financial structure that is dominated by indirect financing. If the financial structure of an economy is dominated by indirect financing, then the main source of funds for the private sector is bank credit, and the credit will eventually be converted into debt, thereby pushing up Leverage ratio; on the contrary, if the financial structure of an economy is dominated by direct financing, especially equity financing, then the main source of funds for the private sector is equity investment, which will not only not increase debt pressure, but also increase capital, thus benefiting Reduce leverage.

Article 36 People’s governments at or above the county level shall take measures to encourage Financial factors are invested in key industries, key projects and key areas to guide industrial transformation and upgrading and high-quality economic development; support the development of private enterprises, farmers, agriculture, rural economy and open economy, and actively promote inclusive finance and green finance.

People's governments at or above the county level should promote the establishment and improvement of small and micro enterprises Provide a policy financing guarantee system for financing guarantees, establish and improve risk compensation and continuous capital replenishment mechanisms for government financing guarantee companies, and encourage financing guarantee companies and banking financial institutions to establish cooperation and guarantee liability risk sharing mechanisms.

Explore the establishment of a corporate financial advisory system, give full play to the professional advantages of financial advisors, and provide Provide consulting services for enterprises to rationally use financial instruments, optimize financing structures, and prevent financial risks.

【Purpose of the article]This article mainly stipulates the guidance of financial investment directions and the establishment of financing guarantee services for small and micro enterprises and corporate financial advisory systems.

【Explanation of Articles】

Please pay attention to three aspects when understanding this article:

First of all, the ultimate goal of financial factor investment is to guide industrial transformation and upgrading and high-quality economic development. Small and micro enterprises, "three The development of agricultural economy and other weak areas. The development of HP Finance provides comprehensive financial services to all classes and groups in society, allowing underdeveloped areas and low-income groups in society to equally enjoy financial services, improving the accessibility of financial services, and embodies the concept of equal access to modern financial services for all people. Investment in financial factors also needs to comply with the concept of green development. The construction of a green finance strategic system in commercial banks is of great significance to promoting the transformation of banks and improving the quality of development. The concept of green finance echoes the green principles in the General Principles of the Civil Law. Second, in 2015, the Provincial People's Government issued the "Opinions of the Zhejiang Provincial People's Government on Promoting the Construction of the Policy Financing Guarantee System" (Zhejiang Zhengfa [2015] No. 32), proposing that the overall goal of the construction of the policy financing guarantee system is to improve and improve the policy financing guarantee system. The province's policy-based financing guarantee system, which is mainly composed of government financing guarantee institutions and supplemented by other financing guarantee institutions, mainly serves small and micro enterprises and "agriculture, rural areas and farmers", and strives to improve small and micro enterprises and "agriculture, rural areas and farmers". The financing environment promotes mass entrepreneurship and innovation, and injects strong impetus into the province's economic transformation and upgrading. Establishing a policy financing guarantee system is to use fiscal policy means to allocate financial resources in a preferential manner and provide indirect financing support for small and medium-sized enterprises. Policy guarantees are public welfare in nature, and their guarantee costs are lower than market guarantee rates, significantly reducing corporate financing costs. Third, the corporate financial advisory system is a public welfare service. Corporate financial advisors proactively connect with enterprises, give full play to their professional advantages and bridge role, impart financial knowledge to enterprises, interpret policies, and help enterprises establish and improve risk prevention and control systems. , Understand the financial needs of enterprises, guide enterprises to formulate investment and financing plans, provide accompanying financial services for enterprises, effectively solve financing problems for enterprises, strengthen the service function of finance to the real economy, and promote the healthy and stable development of Zhejiang's economy and finance.

Article 37 People's governments at or above the county level and their relevant departments shall provide convenience for local financial organizations to carry out relevant mortgage (pledge) financing business in accordance with the law, handle mortgage (pledge) registration for them in a timely manner; establish equity with regional equity markets Registration and docking mechanism; relevant policies enjoyed by financial institutions supervised and managed by the central financial management department can be given to local financial organizations.

Local financial organizations should serve the local real economy and support small and micro enterprises and financing farmers, agriculture, and rural economic organizations.

The dispatched offices of the People's Bank of China provide credit information inquiry support to local financial organizations in accordance with the law. . Financial institutions provide local financial organizations with business support such as fund custody, depository and settlement in accordance with the law

[Purpose of the Article]This article mainly stipulates the relevant supporting business support for local financial organizations to carry out financial activities.

【Interpretation】

For the supporting business support provided in this article, we need to pay attention to four points. First, about the main requirements. People's governments at or above the county level and their relevant departments shall provide convenience for local financial organizations to carry out relevant financial services and handle mortgage (pledge) registration for them in a timely manner. Determining the supporting government functional departments of local financial organizations can effectively guarantee the relevant rights of local financial organizations. Second, regarding improving the docking mechanism. Clarify the establishment of an equity registration docking mechanism with regional equity markets to provide support for the effective implementation of local financial activities. Third, the ultimate goal of financial investment activities is to serve the real economy. At the same time, the development of small and micro enterprises and "agriculture, rural areas and farmers" cannot be ignored. Fourth, regarding the improvement of the status of local financial organizations. Granting relevant policies originally belonging to financial institutions to local financial organizations further strengthens the protection of local financial organizations and at the same time recognizes the legal status of local financial organizations to a certain extent. Fifth, financial institutions provide business support to local financial organizations. The complete financial information inquiry system and business support such as fund custody, depository and settlement provide a strong guarantee for the development of financial activities of local financial organizations.

Article 38 supports cloud computing, big data, and artificial intelligence , blockchain and other emerging technologies in the fields of financial services and financial supervision and management, promote compliance innovation of financial technology products, services and business models, and establish and improve supervision and management systems and new financial risk prevention and control mechanisms that are compatible with innovation.

[Purpose of the Article]This article is about supporting the innovative development of financial technology

【Explanation of Articles】

1. Financial technology innovation

Financial technology is technology-driven financial innovation. According to the definition of the Financial Stability Board (FSB), financial technology (Fin-Tech) refers to Financial innovation, product services, business models and technology applications driven by technology. Fintech has now become a global consensus, aiming to use modern scientific and technological achievements to transform or innovate financial products, business models, business processes, etc., and promote financial development to improve quality and efficiency. Fintech Innovation Current technological and financial innovation has five distinctive features: First, big data and cloud computing provide data and algorithm support for financial product innovation; second, high-speed Internet and blockchain technology provide distributed financial transactions and financial account management. Network service tools are provided; third, artificial intelligence and quantum computing provide intellectual support and technical support for ultra-large-scale financial market system design innovation and complex financial product design innovation; fourth, high and new technologies are the first to be introduced into financial market competition and financial product design competition. Among them, promoting the technological integration of financial market competition and financial product design; fifth, networking, intelligence, internationalization and marketization are the salient features of financial technology innovation. In the context of a new round of technological revolution and industrial transformation, financial technology is booming, and information technologies such as artificial intelligence, big data, cloud computing, and the Internet of Things are deeply integrated with financial services, providing a steady stream of innovative vitality for financial development. Adhering to innovation-driven development and accelerating the strategic deployment and safe application of financial technology have become an intrinsic need and important choice for deepening the structural reform of the financial supply side, enhancing the ability of finance to serve the real economy, and fighting the battle to prevent and resolve financial risks.

2. Fintech supervision

The supervision of financial technology mainly relies on a new regulatory approach with regulatory technology as the core. Regulatory technology (Reg-Tech) is the use of technical means to establish a credible, sustainable and enforceable regulatory agreement and evaluation mechanism between regulated institutions and regulatory agencies. It is essentially a technology-driven regulation. Regulatory technology is agile, practical, scalable and responsive, and can make up for the shortcomings of traditional technology and cope with the high regulatory requirements brought about by financial technology. Existing regulatory technology means mainly include regulatory sandboxes, smoke indexes, etc.

Article 39 People’s governments at or above the county level should establish financial talents The long-term mechanism for team building incorporates the training and introduction of financial talents into the talent support policy system and provides convenience in household registration, housing security, children's schooling, and medical security.

[Purpose of the Article]This article is about the regulations on the construction of financial talent team

【Interpretation】

Talents refer to people who have certain professional knowledge or expertise, perform creative work and contribute to society. They are the capabilities in human resources. and higher-quality workers. The development of the financial industry cannot be separated from the support of talents. If the competition in the global economy and finance has shifted to the development and competition of human resources under global integration, it has turned to participating in the fierce global talent competition and competing for high-end financial talents. With the great emphasis on talent strategy and human resources, and the decline of the demographic dividend, various regions have introduced a large number of measures to attract talents. Most cities that have introduced new talent policies have fully relaxed restrictions on the settlement of academic and professional talents. " "Zero threshold settlement" and "employment first, settlement later" have become a necessary condition for the policy of attracting talents.

Finance is an important weapon of the country and the lifeblood of the country's economic development. It is an important means that cannot be ignored to support the development of the real economy and promote high-quality development. Industry, Zhejiang will position its future finance as green finance, innovative finance, and service finance. Colleges and universities need to start from the needs of Zhejiang Province and deliver higher-quality, higher-quality compound financial talents to the new area. Zhejiang’s financial market needs comprehensive financial talents with solid financial knowledge, innovative abilities, and understanding of marketing and economic laws and regulations.

The key to the economic and social development of Zhejiang Province and the long-term stability of the financial industry lies in people. Only when talents continue to emerge can our reform and development career be successful. hope. At present, Zhejiang Province has launched a number of talent introduction and support plans, including the 151 Talent Project, the Hundreds and Thousands of Science and Technology Innovation Talent Project, the Overseas High-Level Talent Introduction Plan, the Modern Service Industry High-end Talent Training and Introduction Plan, and Zhejiang Province’s “Ten Thousand Talents Plan” ”Wait. Specific support policies include financial subsidies, salary and benefits, household registration, housing, children's schooling, medical security, project arrangements, commendations and awards, living security and other policies. Taking Hangzhou as an example, Hangzhou’s living allowances for recent high-educated graduates in Hangzhou are 10,000 yuan for undergraduates, 30,000 yuan for master’s degrees, and 50,000 yuan for doctoral degrees; financial personnel have newly obtained North American Actuaries, Chartered Financial Analysts (CFA), Financial talents with internationally accepted financial qualifications such as Financial Risk Manager (FRM) will be given subsidies of 50,000 yuan, 30,000 yuan, and 20,000 yuan respectively; as far as the house purchase policy is concerned, financial personnel who meet the "Hangzhou High-level Talent Classification Catalog" 》Recognized Category A talents who purchase their first home in Hangzhou are exempted from the lottery; recognized Category B, C, D, E talents and qualified talents at corresponding levels who purchase their first home in Hangzhou can purchase new commercial housing in Hangzhou. During public lottery sales, priority will be given to supply at a ratio of no more than 20%.

Article 40 The Provincial People's Government and its relevant departments shall promote the construction of the financial credit environment and incorporate relevant credit information of market entities into the provincial public credit information service platform in accordance with relevant national and provincial regulations. Financial institutions are encouraged to provide preferential treatment or convenience in terms of loan credit, rates and interest rates, repayment methods, etc. to market entities that they determine have good credit status.

Relevant units or individuals maliciously evade financial debts, illegal fund-raising, etc. If serious illegal acts are subject to administrative penalties or are determined to be crimes, they shall be included in the list of seriously dishonest persons in accordance with the law.

[Purpose of the Article]This article is about optimizing the local financial credit environment

【Explanation of Articles】

The foundation of the human financial market is credit. Without a perfect credit system, it is impossible to establish a perfect financial chain. The meaning of credit is profound and extensive: (1) From the perspective of property relations, it is a debt relationship that can be fulfilled. From the creditor's perspective, it is the opportunity granted to the debtor to defer payment; from the debtor's perspective, it refers to the debtor's ability to obtain deferred payment. Therefore, credit is essentially a normal lending relationship, which is the original aspect of credit. Credit includes bank credit, enterprise credit, government credit, national credit and private credit. Financial credit takes bank credit as the core. (2) From the perspective of behavior and subject, it refers to integrity. From a behavioral perspective, it is objective integrity, fulfilling debts is keeping promises; from a subject perspective, it is subjective integrity, treating the counterparty in good faith. Integrity reflects the quality of wealth. Only by trusting and being trusted by the other party can normal claims and debts be generated. (3) From the perspective of personality rights. As a comprehensive state formed by the debtor's property status, long-term behavior of fulfilling debts and performance of good faith is attached to the debtor, the debtor's personality rights are formed - a social evaluation of the civil subject's ability to repay debts. , this kind of social evaluation is not transferable because it is attached to the person.

The key to optimizing the financial credit environment is to build a credit information sharing mechanism. The establishment of a credit information sharing mechanism requires distinguishing between government and commercial platforms. For the government, public credit information itself is related to a country's data security and the protection of citizens' rights. It must be opened in an orderly manner in a legal manner to avoid the misuse or abuse of public credit information. This requires the government to take the lead in the credit information system and effectively integrate and protect credit information from aspects such as directory management, data collection, classification, and rights protection. The business platform is more of a technology provider, and its technical advantages can be used in the establishment and maintenance of credit information systems. However, from the perspective of commercial platforms, the government’s mining and utilization of public credit information lacks efficiency and depth, and cannot meet the practical needs of social governance and business governance. Commercial platforms should lead the process of data opening and utilization. This requires the government platform to open public credit information to it as much as possible, thereby establishing a credit information system dominated by it. Here, the government’s role is a provider of data resources, not a manager, and even the public services it provides can be incorporated into commercial platforms.

The function of the trustworthy incentive and the untrustworthy punishment mechanism is to safeguard the interests of honest and trustworthy people and to guarantee the construction of a credit environment. Its basic connotation is to provide material rewards to honest and trustworthy people if conditions permit, and to implement economic blows to all dishonest people so that they will not dare to breach the contract. The trustworthy incentive and untrustworthy punishment mechanism mainly includes five aspects: first, administrative rewards and punishments made by the government's comprehensive management department; second, regulatory rewards and punishments made by the government's professional regulatory departments; third, market entities The fourth is the social punishment formed by the widespread dissemination of credit information; the fifth is the judicial punishment made by the judicial department.

Article 41 encourages local financial organizations to establish industry self-regulatory organizations in accordance with the law , implement self-discipline management. Industry self-regulatory organizations should provide public and basic support services such as industry general information systems and risk prevention mechanisms, and carry out industry development research, integrity system construction, industry standardization construction, vocational skills training and member rights protection in accordance with laws, regulations and charters. and other work, and accept business guidance from the local financial supervision and management (work) department.

[Purpose of the Article]This article is about the self-discipline of the local financial industry

【Explanation of Articles】

Industry associations are social group legal persons. The so-called social group legal person refers to a legal person that is voluntarily organized by market entities to engage in activities such as social welfare, academic research, literature and art, etc., and is not for profit. Members of a social group legal person voluntarily contribute capital to establish their own group property or fund, jointly formulate the group's articles of association, and bear civil liability with all their own property. In addition to the conditions stipulated in the general principles of civil law, the establishment of a social group legal person must also comply with the provisions of relevant laws, administrative regulations and rules and regulations. Secondly, industry associations are self-regulatory organizations, and their members self-manage and self-restrain the association through the establishment of charters. However, this kind of self-management does not negate the administrative supervision and management of associations by relevant departments in accordance with the law. The so-called articles of association refer to an agreement between members that is formulated by the association’s general meeting and is binding on all members. This agreement can be called the member's code, rules, etc. The articles of association should generally state: the name and address of the association; the purpose and responsibilities of the association; the leadership body of the association and its method of creation and term of office; the rules of activities of the association; the rights and obligations of association members; the funds and management of the association, etc. The articles of association of the association should be submitted to the regulatory agency for filing to facilitate the guidance and supervision of the regulatory agency. What needs to be pointed out here is filing rather than approval, which means that the articles of association will take effect after being adopted by the general meeting of members.

Generally, the functions of industry associations in the financial industry can be divided into basic functions and extended functions: basic functions cover all aspects of traditional association functions, such as Rights protection, etc.; provide policy recommendations to regulatory agencies; participate in regional and international banking organizations; formulate business guidelines, improve business processes, standardize service standards; hold conferences and forums; release data and information, etc. The expanded functions have a high technical content and are generally first introduced by financial industry associations in developed countries (regions), such as arbitrating disputes, training practitioners, participating in social activities, assuming social responsibilities, preventing and combating financial crimes, participating in industry management, etc.

Article 42 Laws, regulations, and departmental rules for relevant places If there are legal liability provisions for illegal acts of financial organizations, the provisions shall be followed; if there are no provisions, the provisions of these Regulations shall be followed.

[Purpose of the Article]This article is a guideline on how to apply laws and regulations to pursue legal liability for illegal acts that violate both these regulations and higher-level laws

【Interpretation】

1. Composition of legal liability

Legal liability refers to the mandatory adverse consequences that an actor should bear for violating laws, regulations and other norms. Legal liability generally includes elements such as subject, fault, illegal conduct, fact of damage and causal relationship. The subject is the responsible subject, which refers to the subject of illegal conduct or the subject that bears legal responsibility. The responsible subjects stipulated in these regulations mainly include local financial organizations such as small loan companies, financing guarantee companies, regional equity markets, and their directly responsible managers and others. Responsible personnel. Fault refers to the subjective intention or negligence of assuming responsibility. Among the legal liabilities stipulated in higher-level laws and this chapter, some require the actor to have fault as a necessary condition, and some do not require the actor to have fault as a necessary condition. Illegal acts refer to acts committed by an actor that harm national interests, social public interests or the legitimate interests of others. The fact of damage, that is, the fact of loss or injury, includes personal, property, and mental losses and injuries. In the illegal activities of local financial organizations, it mainly refers to property losses. Causal relationship refers to the relationship between the causing and being caused between the illegal act and the fact of damage.

2. Types of legal liability

Legal liability can be divided into civil liability, administrative liability and criminal liability. Civil liability is the legal consequences that civil violators must bear in accordance with the law, that is, a state law that stipulates that civil violators take action against civil violators in accordance with the law with the purpose of restoring the damaged rights and is associated with certain civil sanctions. Form of coercion; administrative liability refers to the administrative legal consequences that the subject of administrative legal relations shall bear in accordance with the law for violating administrative laws; criminal liability refers to the provisions of the criminal law, which are applicable to those who violate the criminal law and constitute a crime, and are implemented by the compulsory force of the state criminal sanctions. The legal responsibilities stipulated in this chapter of higher-level laws and regulations include civil responsibilities, such as return of property and damage compensation; administrative responsibilities, including administrative sanctions and administrative penalties; criminal responsibilities, such as those who commit the crime of illegally absorbing public deposits and setting up financial institutions without authorization. of criminal detention and fixed-term imprisonment.

3. Level of effectiveness of legal norms

Article 88 of the Legislative Law stipulates: "The effectiveness of laws is higher than administrative regulations, local regulations, and rules." Administrative regulations are more effective than local regulations and rules. ”Laws, administrative regulations, and local regulations are all components of our country's legal system and are the basis for adjusting social relations of different natures, implementing social management, and governing the country according to law. Since these normative documents are formulated by different agencies, there will inevitably be inconsistencies or conflicts, making it difficult to choose when applying them. In order to resolve conflicts between normative documents, it is necessary to clarify the validity levels between normative documents formulated by different entities. When a conflict arises, the legal norm that has priority can be selected according to the different validity levels of the legal norms. The main body for formulating this Regulation is the Zhejiang Provincial People's Congress. The Regulation is a local regulation and its effectiveness is lower than that of laws and administrative regulations.

Article 95, paragraph 1, of the Legislative Law stipulates: "If local regulations and departmental regulations are inconsistent with the same matter, they cannot When determining how to apply, the State Council shall put forward its opinions. If the State Council believes that local regulations should be applied, it shall decide to apply the provisions of local regulations in that place; if it believes that departmental regulations should be applied, it shall submit it to the Standing Committee of the National People's Congress for a ruling. ”It can be seen that there is no clear hierarchy between local regulations and departmental regulations. When the provisions on the same matter are inconsistent, when applying, you should first explore whether there are any provisions on how to apply it. If not, the State Council will provide opinions, and if necessary, the Standing Committee of the National People's Congress will decide. Article 42 of these regulations stipulates that the legal liability provisions of departmental regulations for illegal acts of local financial organizations shall be prioritized without the need for the State Council to provide opinions.

Article 43 Anyone who violates the provisions of Paragraph 1 of Article 9 of these Regulations and engages in financial business without obtaining an administrative license in accordance with the regulations shall be ordered by the provincial and local financial supervision and management department to stop the relevant business, confiscate the illegal income, and impose a fine of more than three times the illegal income. A fine of not more than five times; if there is no illegal income or the illegal income is less than 50,000 yuan, a fine of not less than 50,000 yuan but not more than 200,000 yuan shall be imposed.

Violating the provisions of Article 9, Paragraph 1 of these Regulations, engaging in financial business Anyone who fails to complete the filing in accordance with the regulations shall be ordered by the provincial and local financial regulatory authorities to make corrections within a time limit and be fined not less than RMB 50,000 but not more than RMB 100,000.

[Purpose of the Article]This article is about the legal consequences that should be borne by those who engage in local financial business without obtaining administrative licenses or filing in accordance with regulations

【Explanation of Articles】

1. Supervisory body

This regulation, in accordance with existing national regulations, clarifies that the provincial and local financial supervision and management departments are responsible for the supervision and management of local financial organizations in the province, organizing and coordinating , guide financial risk prevention and disposal work. The local financial work departments of cities divided into districts and the departments determined by the people's governments of counties (cities, districts) (hereinafter collectively referred to as local financial work departments) are responsible for the specific work of financial risk prevention and disposal within their respective administrative regions, and are responsible for the local financial work departments in accordance with the provisions of these regulations. Organize and supervise related work. The development and reform, finance, public security, judicial administration, human resources and social security, market supervision and management, taxation and other departments of the people's governments at or above the county level shall do relevant work in accordance with their statutory responsibilities. The "Opinions of the State Council on Defining Central and Local Financial Supervision Responsibilities and Risk Disposal Responsibilities" clarifies that "the provincial people's governments bear the responsibility for supplementary financial supervision and risk disposal" and "the financial supervision responsibilities assumed by the provincial people's governments cannot be layered." Devolved to the city and county levels of government." The "Guiding Opinions on Issues Concerning the Reform of Local Institutions" emphasizes that "the financial supervision responsibilities assumed by provincial people's governments cannot be delegated to municipal and county people's governments. All localities must strengthen local financial supervision in accordance with the spirit of the central government's deepening of financial reforms." , Strengthen provincial regulatory responsibilities.”

2. Responsible subjects and illegal acts

Small loan company, financing guarantee company, pawn shop, financial leasing company, commercial factoring company, local asset management company, regional Equity markets and various other local trading venues, farmers' professional cooperatives, and other local financial organizations stipulated in laws, administrative regulations, and other local financial organizations authorized by the State Council to supervise and supervise the provincial people's government engage in related financial services without complying with laws, administrative regulations, and relevant national financial supervision and management regulations. , without obtaining the corresponding administrative license or filing. Private financing service enterprises failed to register with the local financial work department of the districted city in accordance with relevant provincial regulations.

3. Form of responsibility

Article 11, paragraph 1, of the Administrative Punishment Law stipulates that local regulations can set administrative penalties other than restricting personal freedom and revoking business licenses. Penalties; Article 8 stipulates that the types of administrative penalties include warnings, fines, confiscation of illegal gains, confiscation of illegal property, orders to suspend production and business, temporary suspension or revocation of licenses, temporary suspension or revocation of licenses, administrative detention, and other provisions of laws and administrative regulations. Administrative penalties; Article 23 stipulates that when administrative agencies impose administrative penalties, they shall order the parties to correct or correct the illegal acts within a time limit.

The imposition of fines and confiscation of illegal gains in this article are administrative penalties. An order to cease relevant business should be an order to suspend production and business as stipulated in Article 8 of the Administrative Penalty Law, rather than a temporary administrative compulsory measure. The provincial and local financial regulatory authorities usually require local financial organizations to cease and correct illegal acts orally or in writing. Ordering corrections within a time limit has the effect of urging filing and should not be regarded as an administrative penalty measure, but should be regarded as administrative guidance or administrative orders, because it is not mandatory and will be followed by specific administrative penalties.

Article 44 Violation of Paragraph 2 of Article 9 of these Regulations , Paragraph 2 of Article 18 stipulates that if private financing service enterprises or private lending borrowers fail to perform their filing obligations, or provide false filing materials, the local financial work department of the districted city shall order them to make corrections within a time limit and impose penalties in accordance with the following provisions:

(1) Three-year fine for private financing service enterprises exceeding 10,000 yuan Fines of less than 10,000 yuan;

(2) If the borrower of a private loan is a natural person, a fine of not less than 10,000 yuan but not more than 50,000 yuan may be imposed; if the borrower is an enterprise or other organization, a fine of not less than 30,000 yuan but not more than 100,000 yuan may be imposed.

[Purpose of the Article]This article is about the legal consequences that private financing service companies and private lending borrowers should bear if they violate the filing obligation

【Explanation of Articles】

1. Private lending

Private lending refers to borrowing between citizens, between citizens and legal persons, between citizens and other organizations, as long as both parties agree If it is true, it will be deemed valid, and the collateral generated by the loan will be valid accordingly. The lending market formed by my country's financial integration is mainly composed of financial institution lending and private lending. The subjects of private lending are limited to natural persons, legal persons and other organizations, which is different from the financial institutions and their branches that are engaged in loan business approved by the financial regulatory authorities. Loans and other related financial services. Article 26 of the "Several Opinions of the Supreme People's Court on the Trial of Loan Cases by People's Courts" stipulates: "If the interest rate agreed between the borrower and the lender does not exceed 24% of the annual interest rate, and the lender requests the borrower to pay interest at the agreed interest rate, the People's Court shall support. If the interest rate agreed between the borrower and the lender exceeds the annual interest rate by 36%, the excess interest agreement is invalid. If the borrower requests the lender to return the interest that has been paid in excess of 36% of the annual interest rate, the People's Court shall support the request. ”The main situations where private lending information needs to be filed include: (1) The amount of a single loan exceeds 3 million yuan. (2) The principal and interest balance of the loan reaches more than 10 million yuan. (3) Borrow money from more than 30 specific persons.

2． Private financing service companies

Private financing service enterprises are innovative enterprises initiated by social capital to provide capital management and financing services. They are a port for information docking of supply and demand of private funds. , register and publish information for private capital needs, organize docking and lending activities between private capital suppliers and buyers, and provide intermediary services such as high-quality financial product promotion, asset evaluation, loan risk guarantee, loan contract record filing, and legal consultation. Private financing service companies are different from small loan companies and P2P companies. Private financing service companies focus on long-term investment. They are not simple loans, but a combination of stocks and bonds. Private financing service companies charge management fees for capital investment and service fees for financing services, rather than simple interest rates. In practice, private financing service enterprises mainly exist in the form of private financing service centers, private capital management companies, private lending registration service centers, etc.

Article 45 If a local financial organization violates the provisions of Article 11, Paragraph 1, Article 16, and Article 17 of these Regulations and has any of the following circumstances, the provincial and local financial supervision and management departments shall order it to make corrections within a time limit; If corrections are made, a fine of not less than 100,000 yuan but not more than 500,000 yuan will be imposed; if the circumstances are serious, the business license issuance authority may revoke the relevant business license:

(1) Failure to implement business compliance and risk management systems;

(2) Failure to indicate risks in accordance with regulations;

(3) Failure to disclose information in accordance with regulations;

(4) The disclosed information does not meet the requirements;

(5) Failure to establish an investor suitability system in accordance with regulations.

[Purpose of the Article]This article is about the legal consequences that local financial organizations should bear if they violate business compliance and risk management standards

【Explanation of Articles】

1. Failure to implement business compliance and risk management systems

Local financial organizations should reasonably arrange the equity structure or capital contribution ratio, improve the corporate governance structure, implement business compliance and risk management systems, and form an effective Internal checks and balances and risk prevention and control mechanisms. With the continuous increase of strict and strong financial supervision, the compliance operation of financial institutions is the general trend and a basic requirement. In practice, some local financial organizations fail to implement relevant business compliance requirements and establish a complete risk control system when conducting financial business and providing financial products or services. For example, some small loan companies have unbalanced corporate governance structures. , controlling rights or actual controllers change frequently; some commercial factoring companies carry out commercial factoring business based on illegal basic transaction contracts, or raise funds from the public in disguised forms through the transfer of creditor's rights or income rights, asset securitization, directional entrusted investment, etc. funds; some financial leasing companies directly or indirectly engage in illegal fund-raising activities in the name of financial leasing.

2. Failure to warn of risks in accordance with regulations

When local financial organizations issue products or provide services, they should warn investors or consumers of risks. Financial institutions are obliged to promptly remind financial consumers of the financial risks of relevant financial products or services and conduct relevant risk level tests on financial consumers, so that financial consumers can fully understand the risks of relevant financial products or services and their own risk tolerance. . In practice, it appears that some financial leasing companies, regional equity markets and other local financial organizations, in the process of providing financial services, fail to promptly remind financial consumers of the financial risks of relevant financial products or services, and do not provide relevant advice to financial consumers. Risk level testing, and even luring financial consumers to participate in illegal financial activities through eye-catching advertising content, can easily mislead financial consumers into purchasing financial products and services that are not in line with their risk preferences and thus suffer investment losses.

3. Failure to disclose information in accordance with regulations

Local financial organizations that issue products or provide services should disclose information that may affect their decision-making. The "Guiding Opinions on Strengthening the Protection of the Rights and Interests of Financial Consumers" issued by the General Office of the State Council in 2015 stipulates that financial consumers' right to know must be protected. Financial institutions should provide financial consumers with timely, truthful, accurate and comprehensive information in plain and easy-to-understand language. Authors must not disclose information that may affect their decision-making, and must not publish fraudulent information such as exaggerating product benefits or covering up product risks, and must not make false or misleading publicity. In practice, some local financial organizations fail to disclose relevant information in accordance with regulations, exaggerate or one-sidedly promote financial services or financial products, or fail to fulfill corresponding disclosure obligations.

4. The information disclosed does not meet the requirements

Local financial organizations that issue products or provide services should disclose information that may affect their decision-making. The information disclosed by local financial organizations must be true, accurate, and complete, and must not contain false records, misleading statements, or major omissions. The "Guiding Opinions on Strengthening the Protection of the Rights and Interests of Financial Consumers" issued by the General Office of the State Council in 2015 stipulates that financial consumers' right to know must be protected. Financial institutions should provide financial consumers with timely, truthful, accurate and comprehensive information in plain and easy-to-understand language. Authors must not disclose information that may affect their decision-making, and must not publish fraudulent information such as exaggerating product benefits or covering up product risks, and must not make false or misleading publicity. Although there are relevant requirements for information disclosure, it is still impossible to prevent some local financial organizations from committing fraud and disclosing information that is untrue, incomplete, and untimely. Some institutions even use information disclosure to lure investors into being deceived. Promote illegal activities and disclose false information.

5. Failure to establish an investor suitability system in accordance with regulations

When local financial organizations issue debt financing business products for non-specific objects, they should establish an investor suitability system to sell appropriate products to suitable investors. The "Minutes of the National Courts' Civil and Commercial Trial Work Conference" issued in 2019 provide a detailed discussion of the investor suitability system. It is believed that the suitability obligation refers to the seller's institution promoting and selling bank financial products, insurance investment products, etc. to financial consumers. High-risk financial products such as trust financial products, brokerage collective financial plans, leveraged fund shares, options and other over-the-counter derivatives, as well as high-risk financial products for financial consumers to participate in margin financing and securities lending, New Third Board, GEM, Science and Technology Innovation Board, futures and other high-risk financial products. In the process of providing services in risk-level investment activities, obligations such as understanding customers, understanding products, and selling (or providing) appropriate products (or services) to appropriate financial consumers must be fulfilled. In practice, some local financial organizations have indeed failed to fulfill their investor suitability obligations, failed to promptly notify financial consumers of the risks of investment activities, and failed to perform corresponding notification obligations.

Article 46 Violation of Article 14 of these Regulations 1 According to the provisions of this paragraph, if a local financial organization registered and established outside the province fails to report its business operations in accordance with regulations, the provincial and local financial supervision and management departments shall order it to make corrections within a time limit; if it fails to make corrections within the time limit, it shall be fined not less than 20,000 yuan but not more than 200,000 yuan.

[Purpose of the Article]This article is about the legal liability of local financial institutions registered and established outside the province that violate business notification requirements

【Interpretation】

Due to the development of technology, especially the vigorous application of Internet technology, local financial organizations are increasingly moving beyond their respective cities and counties, and even This situation is inevitable when moving towards national operations, and it is also in line with the development process of enterprises from small to large, from weak to strong. Some local financial organizations have the characteristics of national finance. Such local financial organizations operating across regions must comply with the state's regional restrictions on the business activities of local financial organizations. Local financial organizations registered and established outside the province and coming to Zhejiang to engage in local financial activities shall regularly report their business operations to the provincial and local financial supervision and management departments. This is conducive to strengthening the responsibilities of local financial supervision, strengthening the coordination and cooperation of local financial supervision, and strictly preventing cross-regional, cross-market, and cross-industry risks from overlapping into major systemic risks.

The specific business scope and specific procedures that need to be reported shall be determined by the provincial and local financial supervision and management departments. All local financial organizations in Zhejiang Province, whether registered and established within the province or outside the province, must comply with national regulations on regional restrictions on the business activities of local financial organizations. Local finance has distinct territorial characteristics. The establishment and development of local finance mainly relies on local economic and social conditions. The risk prevention of local finance mainly relies on local information resources. Only based on the geographical advantages of local financial organizations and their familiarity with the situation in their operating areas can local financial organizations minimize information asymmetry and reduce operating risks. According to Article 15 of these Regulations, local financial organizations shall, in accordance with relevant national and provincial regulations, submit financial accounting reports, operating reports, annual audit reports issued by certified public accountants and other materials to the provincial and local financial supervision and management departments, and report on the operations of major shareholders Difficulties, loss of contact with the main person in charge, liquidity risks and other major events that seriously affect operations. The submitted materials and reported matters should be true, accurate and complete.

Article 47 Violation of Article 15 of these Regulations 1 According to the provisions of this paragraph, if a local financial organization fails to submit relevant materials or report relevant matters, the provincial and local financial supervision and management departments shall order it to make corrections within a time limit; if it fails to make corrections within the time limit, it shall be fined not less than 20,000 yuan but not more than 200,000 yuan; providing false materials or concealing information If there are important facts, a fine of not less than 30,000 yuan but not more than 300,000 yuan will be imposed.

[Purpose of the Article]This article is about the legal liability for violating reporting requirements

【Explanation of Articles】

This clause stipulates the information reporting obligations of local financial organizations and the consequences of violating the regulations, and provides timely information on the business development of local financial organizations. Mastery is the basis for supervision of local financial organizations. At the same time, the consequences of violating the terms are clearly stipulated, and different levels of punishment will be imposed according to different situations.

1. Basis for establishing administrative penalties

The establishment of this provision is well-founded in law, and the legal basis of the Administrative Penalty Law is as follows: Article 8 stipulates: "The types of administrative penalties include warnings, fines, confiscation of illegal gains, confiscation of illegal property, orders to suspend production and business, and temporary detention Or revoke a license, temporarily withhold or revoke a license, administrative detention, or other administrative penalties stipulated in laws and administrative regulations." Paragraph 11 (1) stipulates: "Local regulations may set limits other than restricting personal freedom and revoking an enterprise. Administrative penalties other than business licenses" Article 13 stipulates: "Regulations formulated by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government and the municipal people's governments where the people's governments of provinces and autonomous regions are located, as well as larger municipal people's governments approved by the State Council, may be Specific provisions shall be made within the scope of the acts, types and extent of administrative penalties stipulated in laws and regulations.” Article 23 stipulates: “When the administrative agency imposes administrative penalties, it shall order the party concerned to correct or correct the illegal behavior within a time limit.” ”

2. Illegal acts stipulated in this article

The illegal act of local financial organizations failing to report situations, submit materials and information in accordance with regulations refers to violations of these regulations regarding financial materials and serious Reports on major matters affecting operations. According to the first paragraph of Article 15, local financial organizations shall submit financial accounting reports, operating reports, annual audit reports issued by certified public accountants and other materials to the provincial and local financial supervision and management departments in accordance with relevant national and provincial regulations, and report the main Major events that seriously affect operations include shareholders' operating difficulties, loss of contact with principal persons in charge, and occurrence of liquidity risks.

3. Legal liability stipulated in this article

Regular submission of accurate, authentic and comprehensive materials will help provincial and local financial supervision and management departments to timely grasp the business activities and risk status of enterprises, so as to better protect the rights and interests of financial consumers and ensure regional social and economic stability and development. The legal liability forms stipulated in this article are divided into three levels: first, if the circumstances are general, the provincial and local financial regulatory authorities will order corrections within a time limit; second, if the circumstances are aggravating and the corrections are not made within the time limit, the provincial and local financial regulatory authorities will order corrections within a time limit. Basically, a fine of not less than 20,000 yuan but not more than 200,000 yuan will be imposed; third, if the circumstances are serious, if false materials are provided or important facts are concealed, a fine of not less than 30,000 yuan but not more than 300,000 yuan will be imposed, that is, a heavier fine will be imposed. Ordering corrections within a time limit provides a certain degree of understanding for information omissions caused by negligence, and exempts them from punishment after timely corrections, which reflects the protective effect of a stable economic order. Those who still fail to make corrections after being ordered to do so will be given a certain degree of punishment. Compared with failing to submit information in a timely manner, a more serious situation is deliberately providing false materials and concealing important information, which may lead to chain market risks. This has caused serious damage to the rights and interests of financial consumers and undermined the stability of the regional economic market. Different liability provisions for different levels of illegal acts through different amounts of fines are conducive to forming a stronger guiding and normative effect.

Article 48 Violates the provisions of these regulations, local financial organizations refuse , obstruct supervision and inspection or refuse to implement relevant risk disposal measures, the provincial and local financial supervision and management departments shall order corrections within a time limit and impose a fine of not less than 10,000 yuan but not more than 100,000 yuan; if it constitutes a violation of public security management regulations, the public security organs shall be ordered to make corrections within a time limit and impose a fine of not less than 10,000 yuan but not more than 100,000 yuan. shall be punished according to the Public Security Administration Punishment Law of the Republic of China.

[Purpose of the Article]This article stipulates that local financial organizations shall bear legal liability if they fail to cooperate with management

【Explanation of Articles】This article clearly stipulates the consequences of violating the regulations and local financial organizations refuse to cooperate and make corrections, and serves as a legislative warning. At the same time, punishment measures are clearly stipulated, and different punishment results, such as fines and suspension of business for rectification, will be imposed depending on the seriousness of the case, so as to avoid the abuse of power.

1. Basis for establishing administrative penalties

The establishment of this provision is based on law. The legal basis of the "Administrative Penalty Law" is as follows: Article 8 stipulates: "Administrative Punishment Law" Types of penalties include warnings, fines, confiscation of illegal gains, confiscation of illegal property, orders to suspend production and business, temporary suspension or revocation of licenses, temporary suspension or revocation of licenses, administrative detention, and other administrative penalties stipulated in laws and administrative regulations." Article 11 Paragraph 1 of the article stipulates: "Local regulations may set administrative penalties other than restricting personal freedom and revoking enterprise business licenses." Article 13 stipulates: "The people's governments of provinces, autonomous regions, and municipalities directly under the Central Government and the people's governments of provinces and autonomous regions The regulations formulated by the local municipal people's government and the larger municipal people's government approved by the State Council may make specific provisions within the scope of the acts, types and extent of administrative penalties prescribed by laws and regulations." Article 23 stipulates: " ; When the administrative agency imposes administrative penalties, it shall order the party concerned to correct or correct the illegal behavior within a time limit. ”

2. Illegal acts stipulated in this article

The illegal behavior in this article refers to the behavior of local financial organizations that violates the provisions of these regulations, refuses or obstructs supervision and inspection, or refuses to implement relevant risk treatment measures. The specific illegal acts include but are not limited to violations of the following provisions of these Regulations: Article 20 of these Regulations stipulates on-site supervision measures. When the provincial and local financial supervision departments supervise and manage local financial organizations and their business activities, they may conduct on-site inspections in accordance with the law. , and has the right to take the following measures: inquire relevant staff; interview its actual controllers, major shareholders, legal representatives, directors, supervisors, and senior managers; review and copy documents and materials related to the inspection matters; register and save them in advance Documents and materials that may be transferred, concealed, damaged or forged; inspection of relevant business data management systems; other supervisory and management measures that can be taken in accordance with the law. Article 21 of these Regulations stipulates on organizational termination that if a local financial organization is dissolved or declared bankrupt, it shall be liquidated in accordance with the law and make clear arrangements for the undertaking of relevant business and debt settlement. Provincial and local financial regulatory authorities can guide and supervise the liquidation of local financial organizations. Chapter 3 of these Regulations stipulates the prevention and disposal of financial risks. Article 25 of these Regulations is about the provisions on risk disposal of local financial organizations. If the business activities of local financial organizations may cause or have formed major financial risks, people at or above the county level shall The government should coordinate relevant departments to assist the agencies dispatched by the central financial management department to carry out risk management-related work. The provincial people's government is responsible for the risk management of rural cooperative financial institutions (including rural commercial banks, rural cooperative banks, and rural credit cooperatives), and the people's governments of the cities and counties (cities, districts) where they are located shall cooperate. If the state has other provisions on the risk prevention and disposal responsibilities of financial institutions, such provisions shall prevail.

3. Legal liability stipulated in this article

The legal liability forms stipulated in this article are divided into three levels: the department determined by the provincial and local financial regulatory authorities shall order corrections within a time limit and be fined 10,000 yuan A fine of not less than RMB 100,000 but not more than RMB 100,000 may be imposed; secondly, if the circumstances are serious and the circumstances are serious or if corrections are not made within the time limit, the business may be ordered to suspend business for rectification; thirdly, if the circumstances are aggravating and constitute a violation of public security management, the public security organ shall be responsible for the violation of public security management in accordance with the "Public Security Management of the People's Republic of China" Penalty Law" shall be punished. Orders to make corrections within a time limit and fines have little deterrent effect and cannot make violators feel the seriousness of the consequences of the violation, and may not achieve the purpose of education. By stipulating more stringent liability for more serious violations, it is conducive to the formation of Stronger guidance and normative effect. For serious illegal activities, the provision of orders to suspend business for rectification and increase the cost of illegal activities can serve as a stronger warning. At the same time, the illegal status can be eliminated in a timely and effective manner and the scope of impact of illegal activities can be controlled. Regarding illegal acts that constitute violations of public security management, although the provincial and local financial regulatory authorities do not have the power to exercise the functions specified in the "Public Security Management Punishment Law of the People's Republic of China", these Regulations provide that the public security organs shall comply with the "Public Security Management Punishment Law of the People's Republic of China" To impose penalties, we can cooperate with the public security department to supervise local financial illegal activities, clarify powers and responsibilities, and improve supervision efficiency.

Article 49 Implementation of local financial organizations in accordance with the provisions of these regulations If a penalty is imposed, the department that imposes the penalty may give a warning to the responsible legal representative, director (council member), supervisor, senior manager, operating manager and other directly responsible personnel; and impose a fine on a local financial organization in accordance with the provisions of these regulations. , local financial organizations may impose a fine of not less than 5% but not more than 10% of the amount of the responsible person.

[Purpose of the Article]This article is about the legal liability of local financial organizations and their directors, supervisors and senior managers as well as the heads of other organizations who violate laws, regulations and regulatory provisions< /span>

【Explanation of Articles】

1. Responsible subject

The subject of legal liability in local regulations can be divided into two situations: individuals and organizations based on the different actors. If the actor is an individual and has reached the capacity for responsibility, the actor himself is responsible for his illegal behavior, which embodies the principle of self-responsibility and corresponding punishment; the actor is an organization, and the current legal liability includes single penalty and double penalty. A single penalty means that only the person in charge of the unit organization and other directly responsible personnel will be held legally responsible. A double penalty means that the unit organization itself and the person in charge of the unit organization and other directly responsible personnel will be held legally responsible. When setting legal liability in local regulations, the specific choice of single penalty or double penalty must be comprehensively considered based on the nature of the responsible subject, the subject making the behavioral decision, subjective intention, objective benefit situation and other factors. Specifically, during the application process, if the person in charge and other directly responsible personnel of the unit organization commit illegal acts in the name of the unit organization, but they themselves are the profiteers, a single penalty should be applied, and only the person in charge and other directly responsible personnel shall be punished; if The decision to act is made through the due process of the unit, and the profiteer is the unit organization, so the unit organization should also be the target of legal liability.

In these regulations, for those who "impose penalties on local financial organizations", the department that imposes the penalties "may" give warning sanctions to the responsible legal representatives, directors, supervisors, senior managers and other directly responsible personnel. This is a double penalty. "In accordance with the provisions of these regulations, local financial organizations are subject to fines and penalties," "may" impose a fine of not less than 5% but not more than 10% of the amount of local financial organizations' fines on the responsible personnel. It is a double penalty for the organization and responsible personnel.

2. Basis for establishing administrative penalties

Article 11 of the Administrative Penalty Law stipulates and limits the types of administrative penalties set by local regulations, that is, local regulations can set Administrative penalties other than restricting personal freedom and revoking an enterprise's business license. Article 8 of the Administrative Penalty Law stipulates the types of administrative penalties. According to the different sanctions, administrative penalties can be divided into the following types: Free punishment refers to the restrictions and deprivations taken by administrative subjects against illegal actors. The punishment method for personal freedom is mainly realized through administrative detention; qualification punishment refers to the sanctions imposed by administrative subjects on illegal actors to restrict or deprive specific qualifications or behavioral abilities. For example: ordering to suspend production and business, suspending or revoking licenses and business licenses, causing them to temporarily or long-term incapacity or business qualifications; property penalties refer to administrative subjects depriving illegal actors of certain properties. Including financial confiscation and fines, financial confiscation can be subdivided into confiscation of illegal income, confiscation of illegal finances, confiscation of illegal tools, etc.; admonishment punishment, which can also be called reputational punishment and mental punishment, refers to the administrative body's punishment of illegal actors. Certain punishments, denials and sanctions may be imposed on reputation, honor, reputation, credibility, etc. or spiritual rights and interests. For example, warnings and notifications of criticism. Article 13 of the Administrative Penalty Law stipulates: Local regulations may make specific provisions within the scope of the acts, types and extent of administrative penalties prescribed by laws and regulations. ”

This article stipulates that the responsible person at fault can be given a warning and a financial fine of 5%-10%. , its purpose is more to maintain the balance between the reasonable rights of the subjects of administrative punishment and the direction of maintaining administrative order and protecting public interests. Administrative law ensures that the management order of the country and society is orderly and well-functioning, thereby ensuring that public interests are protected. While protecting and safeguarding, it should also be considered that the interference and restrictions of administrative law on citizens' rights should be within reasonable limits and should not be endless, unprincipled and limited interference, so reasonable punishment limits should be imposed.

Article 50: These Regulations provide for the administrative penalties to be exercised by the provincial and local financial supervision and management departments. The provincial and local financial supervision and management departments may entrust organizations that meet the conditions specified in the "Administrative Punishment Law of the People's Republic of China" to implement them.

[Purpose of the Article]This article is about the entrustment of administrative penalties

【Explanation of Articles】

In order to realize the legislative intention of —“solve the problem of unclear vertical authorization of local financial supervision and unconcentrated horizontal power allocation”, Internal coordination mechanisms must be established among different departments of local government and specific functions and responsibilities must be refined. Delegating administrative penalties is an effective way to decentralize and refine regulatory functions, reduce the pressure on financial regulatory authorities, clarify rights and responsibilities, and better realize the coordination mechanism of internal government departments.

1. Basis for establishing administrative penalties

Article 18, paragraph 1, of the Administrative Punishment Law stipulates: "Administrative agencies may, in accordance with the provisions of laws, regulations or rules, Within the scope of authority, organizations that meet the conditions stipulated in Article 19 of this Law are entrusted to implement administrative penalties. Administrative agencies may not entrust other organizations or individuals to implement administrative penalties." Paragraph 2 of Article 18 stipulates: "The entrusted administrative agency shall be responsible for supervising the implementation of administrative penalties on the entrusted organization and bear legal responsibility for the consequences of this act." The entrusted organization shall implement administrative penalties in the name of the entrusting administrative agency within the scope of entrustment; it shall not entrust any other organization or individual to implement administrative penalties. ”In practice, attention should be paid to whether the scope of entrustment of the entrusted organization is consistent with the administrative penalty behavior implemented, and whether there is an expansion of the scope of punishment supervision. In addition, attention should be paid to whether the entrusted organization directly makes the penalty decision to avoid further entrustment, resulting in The rights and interests of the punished organization are affected.

Article 19 of the Administrative Punishment Law stipulates: "The entrusted organization must meet the following conditions: a business organization established in accordance with the law to manage public affairs; Have staff who are familiar with relevant laws, regulations, rules and business; if technical inspection or technical appraisal is required for illegal activities, corresponding technical inspection or technical appraisal shall be organized with conditions. ”This article further regulates the qualifications of entrusted organizations to avoid delegating the power of punishment to organizations that do not meet the qualifications and conditions, resulting in adverse consequences.

Article 55 of the Administrative Penalty Law stipulates: "Administrative agencies that implement administrative penalties violate Article 18 of this Law regarding entrusted penalties. Specified. If the violation occurs, the superior administrative agency or relevant department shall order it to make corrections, and may impose administrative sanctions on the directly responsible person in charge and other directly responsible personnel in accordance with the law. (This article punishes administrative agencies that fail to properly implement the entrusted penalty power, further restricts the power, and effectively avoids the abuse of power.

2. Legal restrictions on entrustment of administrative penalties 

In terms of entrusted content, according to Article 16 of the Administrative Punishment Law: the power of administrative punishment that restricts personal freedom can only be exercised by the public security organs." ; In terms of the entrusting authority, the entrusting authority must be an authority that has the power to impose penalties in accordance with the law. Organizations that do not have the power to punish themselves or whose power to punish are entrusted by other agencies shall not be entrusted; in terms of entrustment conditions, the entrustment must be based on laws, regulations, and rules. At the same time, other statutory conditions must also be met; in terms of entrustment procedures, some administrative agencies do not go through any formalities when entrusting the power of punishment to individual organizations, resulting in increased arbitrariness in entrustment and unclear responsibilities after entrustment. To this end, legislation should be adopted to clarify the necessary procedures for entrusting the power of punishment, such as signing a letter of authorization, dividing the responsibilities of both parties, and agreeing on the entrustment authority, scope and period; in terms of the attribution of entrusted punishment responsibilities, it is necessary to clarify the punishment behaviors within the entrusted authority and the entrusted authority. Responsibility for punishments other than those imposed.

Article 51 The provincial people's government and provincial and local financial supervision and management departments may, in accordance with laws, administrative regulations, supervision and management rules of the central financial management department and the provisions of these Regulations, regulate the supervision and management of various local financial organizations and determine the standards for major financial risks. etc. to formulate implementation details.

[Purpose of the Article]This article is about the relevant implementation rules of local financial regulations

【Explanation of Articles】

There are many types of local financial organizations and business types. In order to keep the language of the regulations concise, it is impossible to list them all in this regulation. Specifically and in detail, the Zhejiang Provincial People's Government or local financial regulatory authorities are authorized to formulate the organizational measures of relevant local financial organizations, market access and exit, product and business management rules, supervision and management of various local financial organizations, and major financial risk determination standards. The implementation details shall be standardized.

Article 52 These Regulations will come into effect on August 1, 2020.

[Purpose of the Article]This article is about the regulations on the implementation date of the regulations

-END-