The People’s Bank of China (PBOC) has issued new disclosure and reporting requirements for non-bank payments platforms that are scheduled to come into effect at the start of September.
The “Non-bank Payments Organisation Major Item Reporting Administrative Measures” (银行支付机构重大事项报告管理办法) recently unveiled by PBOC are scheduled to come into effect on 1 September 2021.
The Measures step up requirements for the reporting of major events or changes in relation to Chinese payments platforms, calling for them to “make prompt, truthful, accurate and complete reporting of events,” and seeking to stymie “late reporting, reporting omissions, concealed reporting, false reporting, erroneous reporting…misleading statements or major omissions.”
According to PBOC the goal of the new regulations is to “further standardise major reporting by non-bank payments organisations, raise risk identification, prevention and resolution capability on the payments market, and maintain the stability of the payments market.”
“The payments sector is a foundational national sector, and payments organisations in actuality bear major responsibilities,” said Wang Pengbo (王蓬博), chief analyst at Botong Consulting, to 21st Century Business Herald.
“For this reason when it comes to major events, the central bank, as a regulatory agency, has the right to access accurate information in the first instance, in order to avoid the creation of unnecessary loss.”
“In terms of content, the Measures contain more detailed provisions on the scope of major events and reporting procedures.
“I believe that this is the central bank deepening regulation of payments organisations, and from the operations level deeply entering into the corporate governance level.”
The Measures outline a total of 10 “pre-event reporting items,” including the listing of payments organisations, which will require the submission of a report to the branch offices of PBOC in advance. This will include the planned IPO’s or new share issues of payments organisations themselves, as well as the planned IPO’s of their main capital contributors or actual controllers.