In this regard, the relevant person in charge of the China-Australia Trust told the reporters of the Securities Daily that the regulatory requirements will be strictly implemented, and targeted rectification work has been made.
This year, with the continuation of strict supervision situation, trust companies frequently receive regulatory fines, how to strengthen risk management has become increasingly important. The reporter combed the information on the official website of the Banking Insurance Regulatory Commission and found that in the first half of the year, eight trust companies were supervised and issued fines for violations of laws and regulations, with a total amount of fines exceeding 11 million yuan.
Punishing tickets towards normalization
It is noteworthy that as an effective means of supervision, the issuance of penalties to trust companies has gradually become normalized.
Strengthening Compliance is the General Trend
In fact, supervision plays a more warning and guiding role in issuing fines for trust companies. Trust companies should strengthen compliance management, and at the same time, strengthen communication with regulatory authorities.
For penalized trust companies, the most direct negative impact is the limited development of trust business. According to the Puyi Standard, trust companies subject to administrative penalties will be limited when they are trusted to manage social security funds, insurance funds, enterprise annuities, trustees for specific purposes and start trusted overseas financial services, and may also be affected when applying for new business types in the future. When a trust company intends to set up new subsidiaries of funds and other subjects, it may be unable to set up relevant institutions because of administrative penalties, which will affect the business development layout of the trust company.
Jindu Institute believes that trust companies should pay more attention to macro-policy trends, learn new regulatory provisions in time, and implement the window guidance of regulatory bodies. If the supervisory authority conducts on-site/off-site inspection of the trust company or requests to respond to inquiries, the trust company shall coordinate the business, compliance and wind control departments and, if necessary, employ external lawyers to cooperate and respond positively and properly. If the regulatory body has taken penalty measures against the trust company, if the trust company has objections to the reasons, basis and content of the penalty, it should also express its own views and opinions in accordance with the law. Through business exchanges between regulators and trust companies, trust companies can promote compliance, but also further improve the level of supervision and law enforcement, and ultimately conducive to the stable and orderly development of the trust industry as a whole.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425