For the implementation of rules on the regulation authority’s administration of financing guarantee business permits, the promotion of lawful operation of financing guarantee companies, and the maintenance of the order of the financing guarantee market, seven agencies, such as the China Banking and Insurance Regulatory Commission, the National Development and Reform Commission, the Ministry of Finance, etc., jointly promulgated the Measures for the Administration of Financing Guarantee Business Permits (the “Measures”) on April 2, 2018. The Measures are highlighted below:
1. The Measures first clarify the definition of a financing guarantee business permit and set out the contents to be specified in the permit. A financing guarantee company shall obtain a financing guarantee business permit before it may apply to the competent industry and commerce authorities for registration.
2. The Measures provide for the conditions and procedures for issuing, renewing, revoking, and canceling a financing guarantee business permit. If a financial guarantee business permit is issued, renewed, revoked or cancelled, such action shall be publicly announced by the regulator on its website or in publicly circulated newspapers.
3. The Measures stipulate that the establishment, merger, division or capital reduction of a financing guarantee company requires the issuance or renewal of its financial guarantee business permit upon the regulator’s approval. For any change of the name, business address, or business scope or for any increase of the registered capital, an application shall be filed with the regulator for recordation and the renewal of its financing guarantee business permit.
4. The Measures stipulate that the financing guarantee business permit shall be displayed in a conspicuous place on the premises of the financing guarantee company.
5. The Measures provide that the regulator shall strengthen its information management of financing guarantee business permits, establish a sound management archives system, and disclose relevant information about financing guarantee business permits as required by law.