China’s Banking Authority Pushes for Standardisation and Growth of Pension Financial Services

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The China Banking and Insurance Regulatory Commission (CBIRC) has issued a new directive to further drive the standardisation and growth of the Chinese pension sector.

CBIRC recently issued the “Notice on Standardising and Expediting the Development of Commercial Pension Financial Operations” (关于规范和促进商业养老金融业务发展的通知) to selected banks, wealth management companies and life insurance companies, according to reports from state-owned media.

The move comes less than a month after the release of the “Opinions on Driving the Development of Personal Pension Funds” (关于推动个人养老金发展的意见) by CBIRC.

The Notice just issued to Chinese financial institutions calls for “supporting and encouraging banks and insurers to engage in the lawful and compliant development of commercial pension savings, commercial pension wealth management, commercial pension insurance, commercial pension funds and other pension financial services.”

CBIRC also called for financial institutions to “provide customers with pension financial plans, funds management, risk guarantees and other services, to gradually form a development situation with diversified participants and diversified product supply which satisfies diversified demands.”

The Notice requires standardisation of financial products that currently do not satisfy provisions, as did initial trials of pension wealth management operations held in 2021.