All provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning, and local financial supervision administrations of Xinjiang Production and Construction Corps:

In order to regulate the business behavior of commercial factoring enterprises, strengthen supervision and management, consolidate regulatory responsibilities, prevent and resolve risks, and promote the healthy development of the commercial factoring industry, the relevant matters are hereby notified as follows:

1. Operate in compliance with laws and regulations

(1) Commercial factoring enterprises shall abide by the relevant provisions of the Contract Law and other laws and regulations when conducting business, return to the original source, focus on the main business, be honest and trustworthy, operate in compliance with regulations, and continuously improve the quality and efficiency of serving the real economy.

(2) Commercial factoring enterprises should improve corporate governance, improve internal control systems and risk management systems, prevent and resolve various risks, and ensure safe and stable operations.

(3) Commercial factoring business refers to the following services provided by the supplier to the commercial factoring company when the supplier transfers its accounts receivable based on real transactions:

1. Factoring financing;

2. Sales sub-account (sub-) account management;

3. Collection of accounts receivable;

4. Non-commercial bad debt guarantee.

Commercial factoring enterprises should mainly engage in commercial factoring business, and at the same time can also conduct customer credit investigation and evaluation, and consulting services related to commercial factoring.

(4) Commercial factoring enterprises must not engage in the following activities or operate the following businesses:

1. Absorption or disguised absorption of public deposits;

2. Incorporate funds through online lending information intermediaries, various local trading venues, asset management institutions, and private investment funds;

3. Borrow or borrow funds in disguised form with other commercial factoring companies;

4. Grant loans or be entrusted to issue loans;

5. Specializing in or entrusted to carry out collection business and debt collection business that have nothing to do with commercial factoring;

6. Carry out factoring financing business based on illegal basic transaction contracts, consignment contracts, unclear ownership of accounts receivable, and payment claims arising from bills or other securities;

7. Other activities prohibited by the state.

(5) Commercial factoring enterprises may obtain financing from banks and non-bank financial institutions supervised by the China Banking and Insurance Regulatory Commission, and may also obtain financing through shareholder borrowings, bond issuance, and re-factoring. The source of financing must comply with relevant national laws and regulations.

(6) Commercial factoring companies should actively change their business models, gradually increase the proportion of positive factoring business, and benefit more small and medium-sized enterprises upstream and downstream of the supply chain; focus on supporting the national industrial policy direction, the main business is concentrated in the real economy, advanced technology, SMEs in the upstream and downstream of the industry chain with market competitiveness will help the development of the real economy and SMEs.

2. Strengthen supervision and management

(7) Commercial factoring enterprises shall comply with the following regulatory requirements:

1. The accounts receivable of the same debtor shall not exceed 50% of the total risk assets;

2. The transfer of accounts receivable with its affiliated company as the debtor shall not exceed 40% of the total risk assets;

3. The 90 days past due uncollected or unrealized factoring financing included in non-performing assets under management;

4. The risk reserve fund shall not be less than 1% of the ending balance of the financing factoring business;

5. Risk assets must not exceed the net assets of 10 times.

(8) All local financial supervision administrations (hereinafter referred to as financial supervision bureaus) shall focus on analyzing the financial status, business development and operating risks of commercial factoring enterprises, evaluating the effectiveness of corporate governance, internal control, and risk management measures, and paying attention to risk Spillage and cross infection.

(9) All financial regulatory bureaus shall comprehensively and continuously collect business management and risk information of commercial factoring enterprises, clearly and continuously understand and master the basic conditions of the enterprises, and require them to submit report materials on a regular basis, including financial accounting, statistical reports, and business management materials And other information.

(10) The financial supervision bureaus should combine the problems found in off-site supervision and risk supervision requirements, increase the intensity of on-site inspections, increase the depth and breadth of on-site inspections, and improve the quality and efficiency of inspections.

On-site inspections can be carried out by inquiring staff of commercial factoring enterprises, consulting and copying documents, materials, and system data related to the inspection items, and can entrust third-party intermediary agencies to implement them.

(11) Commercial factoring enterprises shall report to the Financial Supervision Bureau within 10 working days after the occurrence of the following matters:

1. A major related party transaction with a single amount exceeding 5% of net assets;

2. A major debt with a single amount exceeding 10% of net assets;

3. Contingent liabilities with a single amount exceeding 20% of net assets;

4. Major losses or compensation liabilities exceeding 10% of net assets;

5. Major pending litigation and arbitration.

(12) According to the needs of risk supervision, the financial supervision bureaus may adopt window guidance, increase the frequency of information submission, supervise the development of self-examination, make risk warnings and notifications, conduct supervisory interviews, and carry out on-site inspections and other routine supervisory measures.

Three, steadily promote classified disposal

(13) The financial supervision bureaus shall continue to check the number and risk base of commercial factoring companies in their jurisdictions through cross-comparison of information, site visits, and acceptance of petitions and complaints, etc., and classify them as normal operations according to their operating risks and violations of laws and regulations. There are three types of irregular operations and illegal operations.

(14) Normal operation category refers to enterprises that operate in compliance with laws and regulations. All financial regulatory bureaus shall review the business license, articles of association, shareholder list, list of senior management personnel and resumes, audited balance sheets, income statements, and cash flows of normal operating commercial factoring companies according to the place of registration. Table and other required information. For enterprises that accept and cooperate with supervision, have business premises in the registered place and log in to the "Commercial Factoring Information Management System" or the information system designated by the Financial Supervision Bureau to complete the information, the financial supervision bureaus shall report to the China Banking and Insurance Regulatory Commission for review in batches. Make public announcements and include them in the supervision list.

(15) Irregular operations mainly refer to enterprises with abnormal operations such as "lost connection" and "empty shell". Among them, a "lost connection" enterprise refers to an enterprise that meets one of the following conditions: unable to get in touch; unable to find it in the on-site investigation of the registered residence of the enterprise; although the staff of the enterprise can be contacted, they do not know and cannot contact the actual control of the enterprise People; failing to submit monthly reports in accordance with regulatory requirements for 3 consecutive months. A "shell" enterprise refers to an enterprise that meets one of the following conditions: the annual report of the market supervision department in the previous year showed no operation; the monthly supervision report for the past 6 months showed no operation; and there was no tax record or "zero declaration" in the past 6 months ; No social security payment record in the past 6 months.

The financial supervision bureaus shall supervise and urge the rectification of abnormal operations and illegal operations. If an abnormal business enterprise has passed the rectification and acceptance check, it can be included in the supervision list; if it refuses to rectify or fails the rectification check and acceptance, the financial supervision bureaus shall coordinate with the market supervision department to include them in the abnormal business list, and persuade them to apply for changes in the name and business scope Voluntarily cancel or revoke the business license according to law.

(16) Business operations in violation of laws and regulations refer to enterprises whose business activities violate laws and regulations and the provisions of this notice. Those with minor violations and qualified rectification inspections can be included in the supervision list; those with unqualified rectification acceptances or serious violations of laws and regulations shall be punished or banned by the financial regulatory bureaus, and suspected crimes shall be promptly transferred to public security organs for investigation and punishment.

    Fourth, strictly control market access

(17) Before the promulgation of the Measures for the Administration of Market Access of Commercial Factoring Enterprises, the financial regulatory bureaus shall coordinate with the market supervision departments to strictly control the registration of commercial factoring enterprises . If a new establishment is really necessary, a consultation mechanism should be established with the market supervision department . Strictly control the change of registered address of commercial factoring enterprises, and prohibit the change of registered address across provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning.

(18) The financial regulatory bureaus shall strictly review the application for changes in the equity of commercial factoring companies on the regulatory list, strengthen the review of the background and strength of the new shareholders, the motivation for the shareholding, and the sources of funds for the shareholding. Own capital to invest in commercial factoring companies.

Five, compact regulatory responsibilities

(19) The China Banking and Insurance Regulatory Commission is responsible for formulating business operation and supervision rules for commercial factoring enterprises. The people's governments of all provinces (autonomous regions and municipalities) are responsible for the supervision and management of commercial factoring enterprises within their jurisdiction. Each financial supervision bureau is specifically responsible for unified centralized supervision. In addition to the newly established approvals and administrative penalties, each financial regulatory bureau may authorize local financial regulatory authorities below the provincial level to be responsible for other regulatory tasks. Establish a system of full-time supervisors. The number and ability of full-time supervisors must match the number of objects under supervision.

(Xx) each Financial Supervisory Authority was established to promote the business of factoring industry to clean up the normative work leading group, the head of the province (autonomous regions and municipalities) People's Government in charge of official bear any office in the Financial Supervisory Authority, including members of the unit market supervision , Public Security, People's Bank, Banking and Insurance Regulatory, Taxation and other departments . The main responsibilities are: to study and resolve major issues in the commercial factoring industry within its jurisdiction, formulate relevant policies and measures, strengthen work guidance, and ensure that the clean-up and standardization of existing commercial factoring companies will be completed by the end of June 2020 and report to the China Banking and Insurance Regulatory Commission.

(21) The financial supervision bureau where the commercial factoring company is located should take the lead in the supervision of cross-regional commercial factoring companies, strengthen coordination and cooperation with the financial supervision bureau where the branches are located, and regularly share the branches of commercial factoring companies operating across regions List of institutions and business information to avoid duplication of supervision and supervision vacuum.

6. Optimize the business environment

(22) The financial regulatory bureaus should promote the introduction of policies such as risk compensation, rewards, and interest discounts to guide commercial factoring companies to better provide financing services for small, medium and micro enterprises.

Commercial factoring companies in the Pilot Free Trade Zone can enjoy various preferential policies for commercial factoring companies and supporting their development in the Pilot Free Trade Zone in accordance with relevant regulations.

(23) Encourage and support bancassurance institutions to cooperate with commercial factoring companies on the supervision list, and provide financing in accordance with the principles of equality, voluntariness, fairness, and good faith .

Encourage banking financial institutions to provide commercial factoring companies with support for overseas cooperation channels to help commercial factoring companies expand their international business. Support insurance companies to research and explore to strengthen business cooperation with commercial factoring companies, provide insurance protection services, and enhance commercial factoring companies' risk resistance capabilities.

(24) The financial regulatory bureaus should strengthen research on major issues in the commercial factoring industry, in-depth summary of industry development experience, comprehensively study and judge the development status and potential problems of the local commercial factoring industry, and continue to guide the high-quality development of the commercial factoring industry .

(25) Local commercial factoring industry associations must play an active role, increase publicity and popularization of the commercial factoring industry, and increase social awareness; guide enterprises to be honest and trustworthy, fair competition, and operate in compliance with laws and regulations; pass training , Communication and other methods to continuously improve the compliance awareness, internal control and risk management of employees, and promote the healthy development of the industry.

Reprinted source: General Office of China Banking and Insurance Regulatory Commission