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Banking Finance

Beijing Plans to Ban Unlicensed Financial Sales and Marketing

China’s top financial regulators are mooting a ban on financial marketing and sales by unlicensed operators.

On 26 August the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange (SAFE) jointly issued the “Notice Concerning Further Standardising Financial Sales and Marketing Conduct (Draft for Public Solicitation of Opinions)” (关于进一步规范金融营销宣传行为的通知(公开征求意见稿)).

The draft version of the Notice stipulates that “the financial sector is specially licensed sector, and engaging in financial services without a license or beyond scope is prohibited.”

“Financial sales and marketing is a key link in financial business activities, and market entities that have not obtained corresponding financial operations qualifications are not permitted to engage in sales or marketing in relation to financial operations.”

The Notice outlines an exception, however, for financial sales and marketing activities undertaken by “information promotion platforms and broadcast media that are lawfully entrusted by qualified operators of financial products and services.”

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