What are the national policies for Internet finance?

The Guiding Opinions on Promoting the Healthy Development of Internet Finance \x0d\\x0d\ In order to encourage financial innovation, promote the healthy development of Internet finance, clarify regulatory responsibilities, and standardize the market order, with the consent of the CPC Central Committee and the State Council, the People's Bank of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Finance, the State Administration for Industry and Commerce, the Legislative Office of the State Council, and the China Banking Regulatory Commission, China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC), and the State Internet Information Office (SIIO) have jointly issued the Guiding Opinions on Promoting the Healthy Development of Internet Finance (Yinfa [2015] No. 221, hereinafter referred to as the Guiding Opinions). \x0d\\\x0d\\ The Guiding Opinions, in accordance with the overall requirements of "encouraging innovation, preventing risks, avoiding harm, and developing healthily", put forward a series of policies and measures to encourage innovation and support the steady development of Internet finance, and actively encourage the innovation of Internet financial platforms, products, and services, as well as encouraging practitioners to cooperate with each other, broaden practitioners' financing channels, and adhere to the principle of simplified governance and the principle of "healthy development". Practitioners financing channels, adhere to the simplification and decentralization and the implementation and improvement of financial and tax policies, and promote the construction of credit infrastructure and supporting service system. \x0d\\\x0d\\ The Guiding Opinions, in accordance with the principles of "regulation in accordance with the law, appropriate regulation, categorized regulation, coordinated regulation and innovative regulation", established the division of regulatory responsibilities for the main forms of Internet finance, such as Internet payment, Internet lending, equity crowdfunding, Internet fund sales, Internet insurance, Internet trusts and Internet consumer finance, and implemented a new regulatory regime for the Internet financial sector. The division of regulatory responsibilities has been implemented and the business boundaries have been clarified. \x0d\\\x0d\\\ The Guiding Opinions adhere to the market-oriented development of Internet finance, follow the overall objectives of serving the real economy well, obeying the macro-control and maintaining financial stability, effectively safeguarding the legitimate rights and interests of consumers, and maintaining a fair and competitive market order, in terms of the management of the Internet industry, the system of third-party deposits for clients' funds, the system of disclosure of information, risk alerts and qualified investors, the protection of consumer rights and interests, network and information security, anti-trust, and the protection of consumer rights and interests. protection, network and information security, anti-money laundering and prevention of financial crimes, strengthening the self-regulation of the Internet financial industry as well as regulatory coordination and statistical monitoring of data and other specific requirements. \x0d\\\\x0d\\ next step, all relevant departments will be in accordance with the division of responsibilities of the "Guiding Opinions", seriously implement the requirements of the "Guiding Opinions"; Internet financial industry practitioners should be in accordance with the "Guiding Opinions" of the relevant provisions of the law to carry out the business activities in accordance with the law. (END)\x0d\\\x0d\\People's Bank of China Ministry of Industry and Information Technology Ministry of Public Security Ministry of Finance Ministry of Industry and Commerce General Administration of Law Office of the Banking Regulatory Commission Securities Regulatory Commission OCI State Internet Information Office on the promotion of the healthy development of the Internet financial guiding opinions\x0d\\x0d\\in recent years, the Internet technology, information and communication technology continue to make breakthroughs, promote the rapid integration of the Internet and finance, promote financial innovation, and Improved the efficiency of financial resource allocation, but there are also some problems and risks. In order to fully implement the spirit of the 18th CPC National Congress and the 2nd, 3rd and 4th Plenary Sessions of the 18th CPC Central Committee, in accordance with the decision-making and deployment of the CPC Central Committee and the State Council, and following the general requirements of "encouraging innovation, preventing risks, avoiding harm and healthy development", and from the perspective of the overall situation of the healthy development of the financial industry, we will further promote the innovation and opening up of the financial reforms to the outside world and the healthy development of Internet finance. Internet finance healthy development, agreed by the CPC Central Committee and the State Council, now puts forward the following views. \x0d\\\x0d\ I. Encourage innovation, support the steady development of Internet finance \x0d\\x0d\ Internet finance is a traditional financial institutions and Internet enterprises (hereinafter collectively referred to as the practitioners) using Internet technology and information and communication technology to achieve the financing of funds, payment, investment and information intermediary services of the new financial business model. The deep integration of the Internet and finance is a general trend that will have a more profound impact on the investment model, business, organization and services. Internet finance has played a positive role in promoting the development of small and micro enterprises and expanding employment that is difficult to be replaced by existing financial institutions, and has opened the door for mass entrepreneurship and innovation. Promoting the healthy development of Internet finance is conducive to improving the quality and efficiency of investment services, deepening financial reform, promoting the development of financial innovation, expanding the opening of the financial industry to the outside world, and building a multi-level financial system. As a new thing, Internet finance needs both market-driven, encourage innovation, and policy assistance to promote development. \x0d\\\\x0d\ (a) Actively encourage innovation in Internet financial platforms, products and services to stimulate market vitality. Encourage financial institutions such as banks, securities, insurance, funds, trusts and consumer finance to rely on Internet technology to realize the transformation and upgrading of traditional financial business and services, and actively develop new products and services based on Internet technology. Support conditional financial institutions to build innovative Internet platforms to carry out Internet banking, Internet securities, Internet insurance, Internet fund sales and Internet consumer finance. Support Internet enterprises to set up Internet payment institutions, Internet lending platforms, equity crowdfunding financing platforms and Internet investment product sales platforms in accordance with the law, establish a multi-level investment service system to serve the real economy, better meet the investment and financing needs of small and medium-sized enterprises and individuals, and further expand the breadth and depth of inclusive finance. Encourage e-commerce enterprises to build and improve their own online investment service system under the conditions of financial laws and regulations, and effectively expand e-commerce supply chain business. Encourage practitioners to actively carry out product, service, technology and management innovation to enhance the core competitiveness of practitioners. \x0d\\\\x0d\(ii) Encourage practitioner institutions to cooperate with each other to realize complementary advantages. Support various types of financial institutions to cooperate with Internet enterprises to establish a favorable Internet financial ecosystem and industry chain. Encourage banking financial institutions to carry out business innovation, and provide third-party payment institutions and online borrowing platforms and other supporting services such as fund depository and payment clearing. Support small and micro investment service organizations to carry out business cooperation with Internet enterprises and realize business model innovation. Support securities, funds, trusts, consumer finance and futures institutions to cooperate with Internet enterprises to broaden investment product sales channels and innovate wealth management models. Encourage insurance companies to cooperate with Internet enterprises to enhance the risk resistance of Internet financial enterprises. \x0d\\\\x0d\\(c) Broaden financing channels for practitioners and improve the financing environment. Support social capital to initiate the establishment of Internet financial industry investment funds, and promote the depth of cooperation between practitioner institutions and venture capital institutions and industrial investment funds. Encourage qualified and high-quality practitioners to list and raise funds in domestic capital markets such as the Main Board and the Growth Enterprise Market. Encourage banking financial institutions to support start-up organizations in accordance with the financial policies to support the development of small and micro enterprises. Innovative investment models and services for the characteristics of Internet enterprises. \x0d\\\\x0d\\(d) Adhere to decentralization and provide quality services. The financial regulators should actively support financial institutions to carry out Internet financial business. In accordance with laws and regulations, the implementation of efficient management of eligible Internet enterprises to carry out related financial business. The administration for industry and commerce shall support Internet enterprises to register for business registration in accordance with the law. The competent telecommunication department and the State Internet information administration department shall actively support Internet financial business; the competent telecommunication department shall supervise the telecommunication business involved in Internet financial business, and the State Internet information administration department shall be responsible for supervising financial information services, Internet information content and other businesses. Actively carry out legislative research in the field of Internet finance, introduce relevant management regulations in due course, and create a favorable institutional environment conducive to the development of Internet finance. Increase the protection of intellectual property rights such as patents and trademarks of practitioners. Encourage provincial people's governments to increase policy support for Internet finance. Support the establishment of specialized Internet financial research institutions, encourage the construction of Internet financial information exchange platforms, and actively carry out Internet financial research. \x0d\\\\x0d\\(e) Implement and improve relevant financial and tax policies. In accordance with the principle of tax fairness, for practitioner organizations with a small business scale and in the start-up period, those that meet the conditions of China's current tax policy for small and medium-sized enterprises, especially small and micro enterprises, can enjoy preferential tax policies in accordance with the regulations. Combined with the reform of business tax to value-added tax in the financial industry, coordinate and improve the tax policies on Internet finance. Implement the policy of pre-tax deduction for the research and development expenses of new technologies and products of practitioner organizations. \x0d\\\\x0d\(6) Promote the construction of credit infrastructure and cultivate the Internet financial supporting service system. Support the construction of infrastructure in technical fields such as big data storage, network and information security maintenance. Encourage practitioner organizations to establish credit information *** enjoyment platform in accordance with the law. Promote access to the basic database of financial credit information by qualified practitioners. Allow qualified practitioners to apply for licenses for credit collection business in accordance with the law. Support qualified credit intermediary organizations to carry out credit rating of Internet enterprises and enhance the transparency of market information. Encourage accounting, auditing, legal, consulting and other intermediary service organizations to provide relevant professional services for Internet enterprises. \x0d\\\x0d\2, classification and guidance, clear responsibility for the supervision of Internet finance \x0d\\x0d\\Internet finance is still financial in nature, and has not changed the characteristics of the hidden, infectious, widespread and sudden financial risks. Strengthening the regulation of Internet finance is an inherent requirement to promote the healthy development of Internet finance. At the same time, Internet finance is a new thing and emerging industry, to develop a moderately loose regulatory policy, leaving room and space for Internet financial innovation. By encouraging innovation and strengthening supervision to support each other, to promote the healthy development of Internet finance, and better serve the real economy. Internet financial regulation should follow the principle of "regulation in accordance with the law, appropriate regulation, classification regulation, collaborative regulation, innovative regulation", scientifically and reasonably define the business boundaries of the various forms of business and access conditions, the implementation of the regulatory responsibility, a clear risk bottom line, to protect the legitimate business, and resolutely crack down on illegal and non-compliant behavior. \x0d\\\\x0d\(7) Internet payment. Internet payment refers to the service of initiating payment instructions and transferring monetary funds through computers, cell phones and other devices, relying on the Internet. Internet payment should always adhere to the purpose of serving the development of e-commerce and providing the community with small, fast, convenient small and micro payment services. Banking financial institutions and third-party payment institutions engaged in Internet payment shall comply with existing laws and regulations and regulatory provisions. Where third-party payment institutions cooperate with other organizations, they shall clearly define the rights and obligations of each party and establish effective risk isolation mechanisms and customer rights and interests protection mechanisms. It shall fully disclose service information to customers, clearly indicate business risks, and shall not exaggerate the nature and function of payment service intermediary. Internet payment business is supervised by the People's Bank of China. \x0d\\\\x0d\\(viii) Internet lending. Internet lending includes individual Internet lending (i.e., P2P Internet lending) and Internet micro-borrowing. Individual network lending refers to direct lending between individuals and individuals realized through the Internet platform. The direct lending and borrowing behaviors occurring on the individual network lending platform belong to the category of private lending and borrowing, and are regulated by the Contract Law, the General Principles of Civil Law and other laws and regulations, as well as the relevant judicial interpretations of the Supreme People's Court. Individual network lending should adhere to the function of the platform to provide intermediary services such as information interaction, aggregation and credit evaluation for investors and financiers. Individual online lending institutions should make clear the nature of information intermediary, mainly provide information services for direct lending and borrowing between borrowers and lenders, and shall not provide credit enhancement services or illegal fund-raising. Network micro-borrowing refers to the small amount of money provided by Internet enterprises to customers through the micro-borrowing companies under their control, using the Internet. Internet micro-borrowing shall comply with the existing regulatory provisions for micro-borrowing companies, give full play to the advantages of Internet borrowing, and endeavor to reduce the financing costs of clients. Internet lending business is regulated by the CBRC. \x0d\\\\x0d\\(ix) Equity crowdfunding financing. Equity crowdfunding financing mainly refers to the activity of public small-scale equity financing through the Internet form. Equity crowdfunding financing must be conducted through the platform of an equity crowdfunding intermediary (an Internet website or other similar electronic medium). Equity crowdfunding intermediaries may, under the premise of complying with laws and regulations, conduct innovative exploration of business models, play the role of equity crowdfunding as an integral part of the multi-level capital market, and better serve innovative and entrepreneurial enterprises. Equity crowdfunding financing parties shall be small and micro-enterprises, and shall truthfully disclose to investors through equity crowdfunding intermediary institutions the business model, operation and management, finance, use of funds and other key information of the enterprise, and shall not mislead or defraud investors. Investors should fully understand the risks of equity crowdfunding activities and have the appropriate risk-bearing capacity to make small investments. Equity crowdfunding financing business is supervised by the Securities and Futures Commission. \x0d\\\\x0d\(j) Internet fund sales. Fund sales organizations and other institutions to sell funds and other investment products through the Internet cooperation, to effectively fulfill the risk disclosure obligations, shall not attract customers through illegal promises of return; fund managers should take effective measures to prevent the asset allocation of the term mismatch and liquidity risk; fund sales organizations and their cooperative institutions to provide investors with income through other activities, should be the composition of the income, prerequisites The fund sales organizations and their cooperative institutions shall provide investors with income through other activities, and shall make comprehensive, true and accurate expressions and listings of the income, prerequisites, applicable circumstances, etc., and shall not be mixed with the income of the fund products. Third-party payment institutions shall comply with the relevant regulatory requirements of the People's Bank of China and the China Securities Regulatory Commission in respect of customer provision and fund sales settlement funds in the process of carrying out fund internet sales and payment services. The customer reserve of the third-party payment institution can only be used to handle the payment business entrusted by the customer, and shall not be used to advance funds and other investment products for fund redemption. Internet fund sales business is regulated by the Securities and Futures Commission. \x0d\\\\x0d\(xi) Internet insurance. Insurance companies carrying out Internet insurance business should follow the principles of security, confidentiality and stability, strengthen risk management, improve the internal control system, and ensure transaction security, information security and fund security. Professional Internet insurance companies shall adhere to the basic orientation of serving Internet economic activities and provide targeted insurance services. The insurance company shall establish a management system for its non-insurance subsidiaries such as e-commerce companies and other companies belonging to it, and set up the necessary firewall. Insurance companies selling insurance products through the Internet shall not make misleading descriptions such as misrepresentation, one-sided or exaggerated publicity of past performance, or unlawful promises of expected returns or assumption of losses. Internet insurance business is regulated by the CIRC. \x0d\\\\x0d\(xii) Internet trust and Internet consumer finance. Trust companies and consumer finance companies conducting business through the Internet should strictly follow regulatory requirements, strengthen risk management, ensure that transactions are legal and compliant, and conserve customer information. Trust companies conducting product sales and other trust business through the Internet shall comply with regulatory requirements such as qualified investors, prudently screen customer identity and assess customer risk tolerance, and shall not sell products to customers whose risk tolerance is not matched. Trust companies and consumer finance companies should develop and improve the system of signing product documents to ensure that the transaction process is legally compliant, safe and standardized. Internet trust business and Internet consumer finance business are supervised by the CBRC. \x0d\\\x0d\three, improve the system, standardize the Internet financial market order \x0d\\x0d\development of Internet finance should be market-oriented, follow the overall objectives of serving the real economy, obeying the macro-control and maintaining financial stability, and effectively safeguard the legitimate rights and interests of consumers, and maintain the market order of fair competition. The management system should be refined to create a favorable environment for the healthy development of Internet finance. \x0d\\\\x0d\(m) Internet industry management. Any organization or individual who opens a website to engage in Internet financial business, in addition to the relevant financial regulatory procedures should be performed in accordance with the provisions of the law, it should also perform the website filing procedures with the competent telecommunications authorities, otherwise it shall not carry out Internet financial business. The Ministry of Industry and Information Technology is responsible for supervising the telecommunication business involved in Internet financial business, and the State Internet Information Office is responsible for supervising the financial information service, Internet information content and other businesses, and the two departments formulate the relevant supervisory rules according to their responsibilities. \x0d\\\\x0d\\(xiv) Third-party depository system for customer funds. Unless otherwise specified, the practitioners shall select qualified banking financial institutions as fund depository institutions to manage and supervise customer funds, and realize the separate account management between customer funds and the practitioners' own funds. The customer funds depository account shall be subject to independent auditing and the results of the auditing shall be disclosed to the customers. The People's Bank of China, in conjunction with the financial supervisory authorities, shall implement supervision in accordance with the division of responsibilities and formulate relevant regulatory rules. \x0d\\\\x0d\(xv) Information disclosure, risk alerts and qualified investor system. Practitioner institutions shall make full disclosure of information to their clients and publish relevant information on their business activities and financial status to investors in a timely manner, so that investors can fully understand the operational status of the practitioner institutions, and promote the sound operation and risk control of the practitioner institutions. Practitioners should explain in detail the transaction mode, rights and obligations of the participants to each participant, and provide sufficient risk tips. It is necessary to study the establishment of a qualified investor system for Internet finance and enhance the level of investor protection. Relevant departments are responsible for supervision in accordance with the division of responsibilities. \x0d\\\\x0d\(p) Consumer rights and interests protection. Research and development of Internet financial consumer education plan, timely release of rights protection tips. Strengthen the disclosure of information related to consumer interests such as the content of the contract of the Internet investment model and the provisions of exemption clauses, and supervise and deal with the illegal and irregular behaviors of operators who use the contractual form clauses to infringe upon the legitimate rights and interests of consumers in accordance with the law. To build a diversified dispute resolution mechanism including online dispute resolution, on-site reception and acceptance, acceptance of complaints by regulatory authorities, third-party mediation as well as arbitration and litigation. Refining and improving the principles, standards and operational procedures for the protection of personal information in Internet finance. Strictly prohibit inaccurate publicity and mandatory bundled sales in the process of selling investment products on the Internet. The People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, together with relevant administrative and law enforcement departments, will carry out the protection of consumer and investor rights and interests in the field of Internet finance in accordance with the division of responsibilities and in accordance with the law. \x0d\\\\x0d\(17) Network and Information Security. Practicing organizations should effectively improve the level of technical security, proper storage of customer data and transaction information, and shall not illegally trade or disclose the personal information of customers. The People's Bank of China, the CBRC, the SFC, the CIRC, the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security (MPS), and the State Internet Information Office (SIIO) are respectively responsible for supervising the network and information security protection of the relevant practitioner institutions and formulating relevant supervisory rules and technical security standards. \x0d\\\\x0d\(xviii) Anti-Money Laundering and Prevention of Financial Crimes. Practicing institutions shall take effective measures to identify their clients, proactively monitor and report suspicious transactions, and properly preserve client information and transaction records. Practicing institutions are obliged to establish and improve rules and regulations concerning assistance in inquiries and freezing in accordance with relevant provisions, assist public security organs and judicial organs in inquiring and freezing property involved in cases in accordance with the law and in a timely manner, and cooperate with the public security organs and judicial organs to do a good job of evidence collection and execution. Firmly combating Internet financial crimes involving illegal fund-raising, preventing financial risks and maintaining financial order. Financial institutions should sign cooperation and agency agreements that include requirements for anti-money laundering and prevention of financial crimes in accordance with relevant laws and regulations when cooperating and acting as agents with Internet enterprises, and ensure that anti-money laundering and financial crime enforcement standards are not lowered as a result of the cooperation and agency relationship. The People's Bank of China takes the lead in supervising the fulfillment of anti-money laundering obligations by practitioner institutions and formulating relevant supervisory rules. The Ministry of Public Security takes the lead in combating Internet financial crimes. \x0d\\\\x0d\\(19) Strengthening self-regulation of the Internet financial industry. Give full play to the positive role of the industry's self-regulatory mechanism in regulating the market behavior of practitioners and protecting the legitimate rights and interests of the industry. The People's Bank of China, in conjunction with relevant departments, has organized the China Internet Finance Association. The association should formulate operation and management rules and industry standards according to the type of business, and promote business exchanges and information ****sharing among organizations. The association shall clarify the self-discipline and punishment mechanism and improve the binding force of industry rules and standards. Strengthen the awareness of law-abiding, honesty and self-discipline, establish a positive image of practitioner institutions serving economic and social development, and create a favorable atmosphere for honest and standardized development. \x0d\\\\x0d\ (xx) Regulatory coordination and statistical monitoring of data. Various regulatory departments should collaborate with each other, form synergies, and give full play to the role of the inter-ministerial joint conference system of financial regulatory coordination. The People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, and China Insurance Regulatory Commission should pay close attention to the development of Internet financial business and related risks, conduct tracking and evaluation of regulatory policies, make timely recommendations for adjustments, and continually summarize regulatory experience. The Ministry of Finance is responsible for the financial regulatory policies of Internet financial institutions. The People's Bank of China, in conjunction with relevant departments, is responsible for establishing and improving the statistical monitoring system of Internet financial data, and relevant departments are responsible for relevant Internet financial data statistics and monitoring work in accordance with the division of regulatory responsibilities and the realization of statistical data and information ****sharing.