nlhe| The State Administration for Financial Supervision and other seven departments jointly released!

Transferred from: bank of China Insurance News

May 10thNlheThe Ministry of Civil Affairs, the National Development and Reform Commission, the Ministry of Public Security, the Ministry of Finance, the people's Bank of China, the General Administration of Market Supervision and the General Administration of Financial Supervision jointly issued the guidance on strengthening the Supervision of pre-charging of Pension institutions (hereinafter referred to as "opinions").

The opinions will come into force on October 1, 2024 and will be valid for 5 years.

The "opinion" proposes that the period of advance collection of pension service fees shall not exceed 12 months, and the deposit charged to an individual elderly person shall not exceed 12 times the monthly bed fee of the elderly. The "opinion" also proposes to encourage the use of Internet, block chain and other information technology means to improve the level of capital security through bank deposit management, insurance and other means.

The relevant person in charge of the Endowment Service Department of the Ministry of Civil Affairs said that the Central Financial work Conference held in October 2023 stressed that the management industry must manage risks and strictly guard against the alienation of general commercial behavior into illegal financial activities. By strengthening the full-chain supervision of the collection, management, use, and return of prepaid funds, the opinions bring the charging behavior of pension institutions into the track of rule of law and standardization, and block the channels for illegal fund-raising by lawbreakers under the guise of pre-charges. to provide a strong legal guarantee for promoting the high-quality development of old-age services.

01

The whole chain standardizes the charging behavior of pension institutions

In recent years, some pension institutions have adopted pre-fee operation, which has been alleviated to a certain extent.NlheThe problems such as insufficient funds for facility construction have been solved, and the pressure on operation has been relieved.

However, a small number of pension institutions have problems such as non-standard management and use of funds, "difficult to refund" and "run away" after the capital chain is broken, and even some lawbreakers have committed criminal acts such as illegal fund-raising and fraud, seriously harming the legitimate rights and interests of the elderly and disturbing the order of the pension service market.

To this end, the "opinion" focuses on standardizing fees, rational use, safety management, and risk prevention, and tightens the "fence of the rule of law" by defining collection requirements, standardizing the use of use, strengthening the management of fee refund, and strengthening supervision measures during and after the event.

The "opinion" makes it clear that the fees charged in advance by pension institutions mainly include pension service fees, deposits and membership fees.

Among them, the period for the advance collection of pension service fees shall not exceed 12 months, and the deposit charged to a single elderly person shall not exceed 12 times the monthly bed fee for the elderly. If pension institutions charge membership fees in order to make up for the lack of funds for facility construction, the provincial civil affairs departments may specify the restrictive requirements such as the maximum amount of membership fees in accordance with the principle of inclusive and prudent supervision.

In order to prevent "selling more than one bed", the "opinion" requires that pension institutions shall not exceed the capacity of bed supply to promise services, ensure that the total number of elderly people who pay fees shall not exceed the total number of beds on record, and that the total amount of fees collected in advance shall not exceed their net fixed assets (the value of assets with security rights already set shall not be included in the net fixed assets).

In terms of use, the opinion points out that membership fees shall not be used for high-risk investments such as non-self-use real estate, securities and financial derivatives, and shall not directly or indirectly invest in companies whose main business is to buy and sell securities. and for other lending purposes; shall not invest or donate to its legal representative (principal responsible person) or other enterprises under the name of the actual controller. Pension institutions operating in chains or groups shall not invest or donate to related enterprises.

02

Take multiple measures to strengthen supervision and management

In view of the deposit and membership fee with greater hidden risks, on the basis of daily supervision, the "opinion" puts forward that the deposit and membership fee should be managed by the third-party deposit and risk deposit of commercial banks to ensure the safety of funds.

The "opinion" makes it clear that the civil affairs department, in conjunction with the local financial supervision department, should determine the list of all commercial banks that undertake business and publish it to the public. Pension institutions shall independently choose depository banks within the scope of the published list. The special deposit account of the pension institution shall retain a certain amount of funds as the risk deposit, and the specific proportion shall be determined by the provincial civil affairs department, but the retention proportion shall not be less than 10% of the total membership fee of the account in the past three years (if the account is charged for less than three years, it shall be calculated on the basis of the total amount of membership fees collected), and shall not be less than 20% of the current balance of the account. When the balance of the special deposit account is close to the minimum proportion of risk margin, the depository bank shall give early warning to the pension institution.

In addition, the "opinion" proposes that depository banks should establish an account management system for pension institutions, collect information on the collection and use of funds of pension institutions, and interface with the information system of civil affairs departments.

The "opinion" also mentioned that all localities should rely on the national old-age service information system and illegal fund-raising monitoring and early warning platform to explore the establishment of key risk index monitoring models and issue risk early warning tips on a regular basis. All localities are encouraged to actively introduce insurance mechanisms to provide risk protection for the elderly to pay advance fees.

03

Promote implementation in four aspects

The relevant responsible person of the Endowment Service Department of the Ministry of Civil Affairs said that the "opinion" fills the gap in the regulatory system at the national level, draws a red line and sets a yardstick for the pre-charging behavior of pension institutions, with open, fair and transparent regulatory rules and standards, so that regulation can be followed, and institutions can operate in good faith and compliance.

In the next step, the civil affairs department will promote the implementation of the "opinions" in four aspects.

The first is the measures to refine the standard task. Proceed from reality, adjust measures to local conditions, highlight local characteristics and development requirements, take the lead in formulating implementation rules or corresponding management measures, and refine management requirements and specific measures.

The second is to improve the cooperative supervision mechanism. Work with relevant departments to improve the working mechanism of pre-charging supervision of pension institutions, establish communication and cooperation mechanisms with the banking system, and improve the work flow of pre-charging risk monitoring, early warning tips and abnormal reports of pension institutions.

The third is to help institutions make a smooth transition. In combination with the actual setting of a reasonable transition period in this region, guide and help pension institutions to complete the procedures of opening special deposit accounts, transferring funds, and submitting information during the transition period, so as to make good convergence and preparations for policy implementation.

The fourth is to explore innovative supervision methods. Explore and carry out the dynamic evaluation of the credit rating of pension institutions; improve and implement the model text of pension service agreements; actively connect insurance institutions, explore commercial insurance such as "performance bond insurance", and further reduce consumer risk.