As part of China's efforts to strengthen credit-based financial regulation and guard against financial risks, the National Financial Regulatory Administration issued trial regulations on the management of the list of entities with serious credit violations. The rules will take effect on Oct 1.
An official at the NFRA said China's top financial regulator formulated these rules to standardize the management of the list of entities with serious credit violations in the financial sector, strengthen credit-based supervision, continuously improve mechanisms for preventing and defusing financial risks, and maintain good order in financial markets.
The regulator said the move will help strengthen penalties for illegal and non-compliant conduct, enhance the effectiveness of financial regulation, and guide market entities to strengthen their awareness of conducting business with integrity.
The NFRA said the scope of entities to be included on the list is defined with due caution. Financial institutions and their employees subject to administrative penalties or other measures imposed by the NFRA or its local offices shall be included on the list in instances where the nature of the violation is particularly egregious and the circumstances are particularly severe.
