China's National Financial Regulatory Administration has issued a consultation draft of interim provisions that would standardise how it designates and manages a list of “seriously dishonest” entities in the financial sector, using credit-based supervision to deter major illegal and non-compliant conduct and support market order. The draft sets a narrow scope for inclusion, covering financial institutions, their employees and other relevant subjects that have been subject to administrative penalties or compulsory regulatory measures by the administration or its local offices, where the conduct is particularly egregious, the circumstances are extremely serious, and it seriously disrupts fair market competition and normal social order. It also outlines the management measures that the administration and its local offices may apply to listed entities, and formalises governance procedures including prior notice and an objection-handling process. Listed entities would be removed after three years, with associated measures lifted, and a credit restoration mechanism would allow applications for early removal after one year if specified conditions are met. The administration will review public feedback, revise the interim provisions and publish and implement the final rules in due course.
China Banking and Insurance Regulatory Commission 2025-06-06
China's National Financial Regulatory Administration launches consultation on interim rules for managing a serious dishonesty list in the financial sector
China's National Financial Regulatory Administration has released a consultation draft of interim provisions to standardize the designation and management of "seriously dishonest" entities in the financial sector. The draft outlines criteria for inclusion, management measures, and governance procedures, including a credit restoration mechanism for early removal. Public feedback will be reviewed before finalizing and implementing the rules.