China's National Financial Regulatory Administration launches consultation on revised administrative penalty measures

China’s National Financial Regulatory Administration (NFRA) has published draft Administrative Penalty Measures for public consultation, updating the former China Banking and Insurance Regulatory Commission framework to reflect the revised Administrative Penalty Law and to standardise penalty work following the supervisory restructuring. The draft sets more explicit requirements for penalty decision-making and case handling processes, jurisdiction and coordination arrangements, investigation and evidence-gathering rules, and end-to-end supervision supported by digital systems. Proposed due process safeguards include separating case filing and investigation, case review, and decision-making functions; allowing service of legal documents by fax, email or electronic transmission systems where receipt can be confirmed with the party’s consent; requiring renewed prior notice where a proposed penalty decision is materially adjusted; requiring issuance of a formal notice where no administrative penalty is imposed; and refining rules for deferred or instalment payment of fines. Governance and oversight measures include requiring collective discussion by the NFRA or its local offices’ responsible persons for complex cases or major violations, allowing verified materials obtained before formal case filing through on-site inspections or checks to be used as evidence, establishing a traceable and intelligent case management system, introducing post-penalty evaluation and tracking mechanisms, and providing for accountability where dereliction of duty occurs in penalty work.