CBIRC Intends to Regulate Classification of Trust Business

China Banking and Insurance Regulatory Commission (“CBIRC”) drafted the Notice on Matters Relating to the Classification of Trust Business of Regulated Trust Companies (“Notice”) and solicited public comments on December 30, 2022.

The Notice emphasizes the positioning of trustees of trust companies. According to the essence of various trust services, the trust business is divided into three categories: (1) asset management trusts; (2) asset service trusts; and (3) public welfare/charity trusts. The Notice subdivides trust business sub-items under each major category of business, regulates definition, boundary, service content and prohibited items of each business. In addition, the Notice clarified the responsibility subject and work requirements of the classified work.