The China Banking and Insurance Regulatory Commission ("CBIRC") has recently enacted and issued the Interim Measures for the Equity Management of Trust Companies (the "Measures"), with effect from March 1, 2020.

The major contents of the Measures deal with three aspects as below. The first is further stepping up the management of shareholders, particularly major shareholders, of trust companies, from the perspectives of market access, dynamic management of equity information, category-based management and control of shareholders' behavior, etc. The second is further intensifying the management of related-party transactions of trust companies from the angles of principles for management of related-party transactions, the name list-based management of related parties, and internal control mechanism for related-party transactions, in order to have trust companies fulfill their responsibilities for management of related-party transactions. And the third is prompting trust companies to improve the building of the corporate governance mechanism by assigning responsibilities for corporate governance to their shareholders and at the company level and clearly defining the responsibilities of different subjects in the process of equity changes and of equity holdings. The regulatory guideline that regulatory agencies encourage trust companies to optimize their equity structure and incorporate strategic investors that care about long-term development and have mature experience in management to promote the transformative development of trust companies and raise the level of professional services, is made clear.

(Source: China Banking and Insurance Regulatory Commission)