China's National Financial Regulatory Administration (NFRA) has issued revised Administrative Penalty Measures, updating its administrative enforcement framework to reflect changes in China’s Administrative Penalty Law and new supervisory needs following the financial regulatory restructuring. The measures rename and replace the former China Banking and Insurance Regulatory Commission rules and broaden the scope of potential penalised parties from banking and insurance institutions to financial institutions, explicitly capturing financial holding companies. Key changes include tighter decision-making and case-handling procedures, including collective decision-making for major and complex cases and new procedures to suspend handling and close cases. The measures clarify jurisdictional allocation between the NFRA and its local offices and require unlawful conduct outside the regulator’s jurisdiction to be transferred in accordance with law, while also strengthening investigation, evidence-gathering, and rights protections. Relief mechanisms are expanded through enhanced rules on statements, defences and hearings, including re-notification where core facts, rationale, basis or proposed penalties are materially adjusted, and a formal non-penalty procedure where a no-penalty condition is identified after a prior notice. Execution rules are refined, including a cap that late-payment surcharges may not exceed the original fine, and clarification that the time limit to apply to the people’s court for enforcement of deferred or instalment fines runs from the end of the deferral or instalment period. Internal constraints are reinforced through procedures to proactively correct or revoke erroneous penalty decisions, requirements to build an end-to-end penalty information management system and tracking and evaluation mechanism, and provisions on accountability and compensation where unlawful penalties cause harm.
China Banking and Insurance Regulatory Commission 2025-04-30
China's National Financial Regulatory Administration issues revised Administrative Penalty Measures extending coverage to all financial institutions
China's NFRA updated its Administrative Penalty Measures, now covering financial holding companies and refining enforcement. Changes include collective decision-making for complex cases, enhanced investigations, rights protections, and execution rules, including limits on late-payment surcharges. Expanded relief mechanisms and internal constraints aim to correct erroneous penalties and improve accountability.