Interpretation of the provisions of "Zhejiang Province Local Financial Regulations" (Part 1)

Author: Li Youxing, Zhejiang University Guanghua Law School Pan Zheng, Fang Mengmeng, Qian Hao Yu, Kang Qiongmei, Tang Fangshi

Chapter 1 General Provisions

Article 1 In order to strengthen local financial supervision and management, prevent and resolve financial risks, maintain regional financial stability, promote the healthy development of local finance, and guide financial To serve the real economy, these regulations are formulated in accordance with relevant laws, administrative regulations and provisions of the State Council, and in conjunction with the actual situation of the province.

[Purpose of the Article]This article is about Provisions on the legislative purpose and basis of legislation

【Explanation of Articles】

"Zhejiang Province Local Financial Regulations" is based on achieving the dual goals of preventing and resolving regional financial risks and promoting financial development. First of all, we must guard against risks, stick to the bottom line, and ensure stability. Adhere to a problem-oriented approach, clarify regulatory responsibilities, implement risk disposal responsibilities, and manage various major risks in response to the outstanding problems currently existing in the operation of the financial sector in Zhejiang Province. Secondly, we must also take into account the goal of promoting development. Promote the standardized development of the financial industry, enhance the strength and quality of the financial industry, and form a total financial supply that is consistent with the economic development requirements of Zhejiang Province and a financial supply structure that matches the industrial structure of our province. Guide finance to return to its roots and improve the efficiency and level of financial services for the real economy. In order to take into account the tension between risk prevention and financial development, the regulations introduce the third purpose of "guiding finance to serve the real economy". From the perspective of the entire economic system, finance is the medium in resource allocation. The legislative purpose of "guiding finance to serve the real economy" is to guide finance to return to its social positioning, effectively play its role in allocating media resources, and become a measure of financial stability and financial development, so that the two do not deviate from financial social positioning.

The legislative basis for the "Zhejiang Province Local Financial Regulations" is the laws, administrative regulations and decisions of the State Council, as well as the Zhejiang Province The actual situation. The "Several Opinions on Serving the Real Economy, Preventing and Controlling Financial Risks and Deepening Financial Reform" issued by the Central Committee of the Communist Party of China and the State Council proposed to "improve the division of financial regulatory responsibilities between the central and local governments and give local governments financial regulatory responsibilities." Small loan companies, financing guarantee companies, regional equity markets, pawn shops, financial leasing companies, commercial factoring companies, local asset management companies, etc., are supervised by local financial regulatory authorities. Strengthen the supervision of local financial regulatory authorities over investment companies, farmer cooperatives that carry out credit mutual assistance, social crowdfunding institutions, and various local trading venues within their jurisdiction. The regulations of the Party Central Committee and the State Council are currently the main legal basis for local financial legislation. Of course, in terms of the supervision of specific local financial businesses, many specific regulatory rules have been issued, including the State Council’s Regulations on the Supervision and Administration of Financing Guarantee Companies (2017), as well as a series of departmental regulations, such as the Interim Measures for the Management of Financing Guarantee Companies. "(2010), "Guiding Opinions on the Pilot of Small Loan Companies" (2008), "Pawn Management Measures" (2005), "Pawn Industry Supervision Regulations" (2016), "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries" (2016), "Measures for the Supervision and Administration of Financial Leasing Enterprises" (2013), and "Notice of the Ministry of Commerce on Relevant Work on the Commercial Factoring Pilot" (2012). These departmental regulations can be used as legal norms that can be referred to in the local financial supervision process.

Article 2 Local financial organizations within the administrative region of this province shall abide by these regulations when engaging in financial business, local financial supervision and management (work) departments and other departments carrying out local financial supervision and management, financial risk prevention and disposal and other activities. If laws, administrative regulations and the state provide otherwise, such provisions shall prevail.

Local financial organizations as mentioned in these Regulations refer to small loan companies, financing guarantee companies, pawn shops, financial leasing companies, commercial factoring companies, local asset management companies, and regional equity markets that are established in accordance with the law and engage in relevant financial businesses. and other local trading venues, farmers' professional cooperatives, private financing service enterprises, and other organizations engaged in financial business stipulated by laws, administrative regulations and supervised and managed by the provincial people's government authorized by the State Council.

The various trading venues in other places referred to in these Regulations refer to various trading venues that engage in equity transactions such as creditor's rights, intellectual property rights, cultural and artistic rights, financial asset rights and interests, and bulk commodity transactions, excluding those that only engage in vehicles and real estate. and other physical trading venues as well as public resource trading venues established by the people's governments at or above the county level and their relevant departments in accordance with the law.

【Purpose of the Article】This article is about the scope of application and adjustment objects of the regulations

【Interpretation】

1. Scope of application of the regulations

The geographical scope of application of the "Zhejiang Province Local Financial Regulations" is also called the spatial effect of the regulations, that is, the regulations apply to Which geographical scope. The spatial effect of the "Zhejiang Province Local Financial Regulations" is within the administrative region of Zhejiang Province. All individuals or organizations engaged in local financial-related activities within the Zhejiang Province region are subject to the regulations. The scope of application of the regulations to persons, that is, what kind of natural persons the regulations apply to, adopts a model that combines the personal principle and the territorial principle. That is, these regulations mainly apply to those who are approved or registered in accordance with the law in Zhejiang Province and are engaged in local financial activities. Organizations and individuals, but due to the spillover nature of financial risks, local governments have the responsibility to protect their territory. This Regulation also partly adopts the principle of territoriality. For organizations and individuals that are not approved or registered in Zhejiang Province and engage in local financial activities, as long as they are within Zhejiang Province Financial activities stipulated in these regulations are carried out, and management and supervision are also carried out. For example, Article 14 of the regulations clearly stipulates that "local financial organizations registered and established outside the province that carry out business within the scope of business in accordance with the law within the administrative area of the province shall regularly report to the provincial government." The financial supervision and management department reports on business development. The specific business scope and specific procedures that need to be reported shall be determined by the provincial and local financial supervision and management departments. ”

2. Objects to be adjusted by the regulations

The regulations mainly adjust the legal relations of local financial transactions and the legal relations of local financial supervision. The legal relations of local financial transactions involve the development of financial business of local financial organizations and the civil and commercial rights and obligations of the subjects in the transactions, etc. The legal relations of local financial supervision include the legal relations that arise in the implementation of local financial supervision and management activities by local financial supervision and management (work) departments and other departments, as well as the prevention and disposal of financial risks.

The second and third paragraphs of this article are the management service objects of the "Zhejiang Provincial Local Financial Regulations", that is, local supervision authorized by the central government Explanation of legal concepts for various types of local financial organizations. The "Zhejiang Province Local Financial Regulations" mainly involve the supervision of "7+4+1+X" type institutions. According to the "Several Opinions on Serving the Real Economy, Preventing and Controlling Financial Risks and Deepening Financial Reform" issued by the Central Committee of the Communist Party of China and the State Council, the scope of local financial supervision by local governments mainly includes "7+4" institutions. The central government requires local governments to be responsible for the supervision of small loans. Companies, financing guarantee companies, regional equity markets, pawn shops, financial leasing companies, commercial factoring companies, local asset management companies and other financial institutions shall be supervised, and supervision of investment companies, farmers' professional cooperatives, social crowdfunding institutions, local various Supervision of similar exchanges, etc. "1" refers to private financing service enterprises. In addition to the "7+4" institutions specified by the central government, combined with the actual situation of Zhejiang Province and the experience of the "Wenzhou Private Financial Management Regulations", the regulations will incorporate private financing with Zhejiang characteristics Service companies are also included in the adjustment targets of the regulations. In addition, "X" refers to the provisions of laws, administrative regulations and other organizations engaged in financial business that are supervised and managed by the provincial people's government authorized by the State Council as a blanket provision.

Article 3 Local financial work shall follow the principles of classified management, prudence, risk prevention and control, and innovative development.

[Purpose of the article]This article is about the regulations on local financial work principles

【Interpretation】

Category management, refers to classifying local financial organizations according to their risk levels and business characteristics, and taking targeted supervisory and management measures. The local financial organization system is diversified, with many types of institutions and different business models. The "Zhejiang Province Local Financial Regulations" implement classified management, tailor-made and differentiated supervision for different types of local financial organizations based on their respective characteristics. policy. In short, classified management means adopting different supervision methods for institutions with different levels of risk. Classification is a means, not an end. The purpose of classification is to make supervision more effective and better prevent and handle risks.

Sure and prudent means that local financial work must take into account all factors, make prudent and scientific decisions, and carry out work steadily. Local financial work must continue to maintain prudent supervision of local financial activities, respect the inherent laws of financial development, avoid "one size fits all" and dynamic supervision, and respect the inherent requirements of market development. Local financial supervision must maintain regulatory focus, keep bottom-line thinking in mind, supervise prudently, scientifically grasp the intensity and rhythm of supervision, and advance financial risk prevention and control in a steady and orderly manner.

Prevent and control risks, means that local financial work must adhere to the basic principles of preventing and resolving financial risks, and establish the bottom-line thinking of preventing and controlling financial risks. Local financial supervision should place the prevention and resolution of financial risks in a more prominent position, clarify resolution measures, implement resolution responsibilities, prevent and handle risks in key areas, continue to optimize the financial ecological environment, and firmly guard the bottom line of no systemic financial risks. , creating a good financial ecological environment for the high-quality development of the real economy.

Innovative development, First, it means that local financial work itself must continue to innovate and develop, and comprehensively use a variety of New technologies and new methods can improve the efficiency of regulatory work; second, local financial regulatory work must keep up with the pace of market innovation and development, vigorously promote regulatory transformation, reduce and simplify administrative approval matters, and strive to create a good environment for market innovation and development. Under the situation where the pace of market innovation is accelerating, to prevent the vicious circle of "if we let it go, it will lead to chaos, and if we put it under control, it will die", local financial regulatory authorities must adapt to the new situation, new characteristics and new requirements of market innovation and development, and strengthen scientific supervision. Efforts should be made to regulate and improve the technical content and practical capabilities of supervision; thirdly, local financial organizations and activities must also be innovatively developed. Supervision is not the purpose. The ultimate purpose of supervision is to promote the orderly and healthy development of local financial organizations and activities and stimulate the market. vitality and creativity to better serve the real economy.

Article 4 The Provincial People's Government shall establish and improve the local financial supervision and management system, improve the local government financial work discussion and coordination mechanism, and coordinate the local financial reform and development Stabilize major issues, coordinate and resolve major issues in local financial supervision and management, financial risk prevention and disposal, implement local financial supervision and management, financial risk prevention and disposal responsibilities and the responsibility of the person primarily responsible for handling illegal fund-raising, and accept the financial stability of the State Council Development Committee guidance and oversight.

The local government financial work discussion and coordination mechanism should provide supervision and management of local financial organizations, financial risk prevention and disposal, protection of financial consumer rights and interests, information sharing, etc. Strengthen collaboration and cooperation with the local coordination mechanism of the Office of the Financial Stability and Development Commission of the State Council.

The people's governments of cities and counties (cities, districts) divided into districts should strengthen their leadership over local financial work, strengthen the construction of local financial supervision and management capabilities, and adopt Measures will guide financial services to the real economy, promote the development of the financial industry, and assume the responsibility for local financial risk prevention and disposal in accordance with regulations.

[Purpose of the article]This article is about the regulations on the local financial supervision system and coordination mechanism

【Interpretation】

1. Local financial regulatory system

On the premise that finance belongs to the central authority, granting a certain limit and scope of financial regulatory power to local governments has become our country's response to financial development changes, It is necessary to prevent local financial risks. The contrast between local financial risks and regulatory power in my country has distinctive characteristics. From a vertical perspective, the power of the central financial regulatory authorities is projected to the local areas, showing a decreasing pattern. The further down the province, city, and county, the more insufficient the regulatory power is; while with Compared with the trend of vertical weakening of the regulatory power of the central financial regulatory authorities, local financial risks show an opposite trend. Sub-provincial areas with relatively weak vertical supervision may become areas with high incidence of financial risks. The county-based business model of local financial organizations has made Financial risks are concentrated in county areas. Based on the understanding of the particularity of local financial risks, the regulations established the local financial working system of Zhejiang Province in accordance with the principle of symmetry of rights, responsibilities, and benefits, and clarified the responsibilities of the people's governments at the provincial, districted city, and county (city, district) levels. Division of responsibilities and implementation of local financial supervision and risk prevention and disposal responsibilities at all levels. First, the provincial people's government is responsible for the construction of local financial regulatory institutions in the province, improving the local government financial work discussion and coordination mechanism, coordinating major issues of local financial reform, development and stability, and coordinating and solving problems in local financial supervision and management, financial risk prevention and resolution. Major issues, and as the first person responsible for local financial supervision and management, financial risk prevention and disposal, and illegal fund-raising, accept the guidance and supervision of the Financial Stability and Development Committee of the State Council; secondly, cities and counties (cities, districts) divided into districts The two levels of people's governments should strengthen their leadership over local financial work, take into account local financial development and risk prevention, and assume local financial risk prevention and disposal responsibilities in accordance with regulations.

2. Local financial regulatory coordination mechanism

The "Zhejiang Province Local Financial Regulations" establishes a dual coordination mechanism for local financial supervision. The first is the local coordination mechanism of the Office of the Financial Stability and Development Commission of the State Council. The Office of the Financial Stability and Development Commission of the State Council issued the "Opinions of the Office of the Financial Stability and Development Commission of the State Council on Establishing a Local Coordination Mechanism" to gradually establish a local coordination mechanism for the Office of the Financial Commission in various provinces (autonomous regions and municipalities) to strengthen the central and local efforts in financial supervision, risk disposal, Collaboration in information sharing and consumer rights protection. The local coordination mechanism of the Financial Commission Office is an important measure to implement the National Financial Work Conference’s recommendation on strengthening central and local financial cooperation. It greatly strengthens the coordination of central and local financial supervision and is conducive to accurately preventing and resolving local financial risks. It means that my country’s local financial supervision framework The initial formation is the further improvement of my country’s financial supervision system. The second is the coordination mechanism for local government financial work discussions. The Zhejiang Provincial People's Government has established a local financial work discussion and coordination mechanism to coordinate major issues concerning the reform and development of the local financial industry in the province, coordinate local financial supervision and risk disposal, and maintain local financial stability. The arrangement of the dual coordination mechanism can undoubtedly better balance the central and local governments. For example, the central coordination mechanism has the advantage of accepting and identifying illegal financial activities, but it lacks the advantages of disposal, banning and removal. Local governments have the advantage of "joint law enforcement and disposal by public security, procuratorate, courts, market supervision and so on." The local government financial work discussion and coordination mechanism in Zhejiang Province can stimulate the ability of local governments to coordinate independently, give full play to local law enforcement and information advantages, obtain regional financial risk information in a timely manner before the central government, and quickly mobilize local resources for disposal, and effectively assume local responsibilities. Financial supervision and risk prevention and handling responsibilities, promoting local financial stability and financial services for the development of the real economy.

Article 5 The provincial local financial supervision and management department is responsible for the supervision and management of local financial organizations in the province, and organizes, coordinates, and guides the prevention and disposal of financial risks. Work.

The local financial work departments of cities divided into districts and the departments determined by the people's governments of counties (cities, districts) (hereinafter collectively referred to as local financial work departments) are responsible for this administration Specific work on the prevention and treatment of financial risks within the region, and undertake related work on the supervision and management of local financial organizations in accordance with the provisions of these regulations.

The development and reform, finance, public security, judicial administration, human resources and social security, market supervision and management, taxation and other departments of the people's governments at or above the county level, in accordance with Perform relevant work according to legal responsibilities.

[Purpose of the Article]This article is about Provisions on the powers and powers of local financial regulatory authorities at all levels

【Explanation of Articles】

"Zhejiang Province Local Financial Regulations" establishes a three-level system of local financial regulatory work departments at the province, city with districts, and county (city, district) Arrangements have been made to consolidate the supervision and management responsibilities of local financial organizations to the local level. The Provincial People's Government, as the primary person responsible for local financial supervision and management, financial risk prevention and disposal, and illegal fund-raising, is not inconsistent with the practice of consolidating the responsibilities of local governments at all levels and local financial departments, and consolidating local financial supervision Territorial responsibilities do not mean consolidating "provincial territorial responsibilities." In the past, it was emphasized that local financial regulatory powers cannot be delegated to the people's governments at the city and county (city, district) levels, which makes local financial management resources mainly concentrated in There is a serious regulatory vacuum at the grassroots level of provincial people's governments and districted cities and counties (cities and districts), making the grassroots areas high-incidence areas for local financial risks. In order to effectively solve this problem, based on the actual needs of consolidating territorial risk disposal responsibilities, the regulations establish a system of local financial regulatory work departments at the provincial, districted city, and county (city, district) levels, and set up territorial front-line regulatory agencies. Really realize the comprehensive supervision of local financial activities in the province. In addition, the regulations also clarified the functional positioning of local financial regulatory departments at all levels, and established a dual leadership system that combines "regional jurisdiction" and "regional segmentation." The local financial work departments of cities divided into districts and the departments determined by the people's governments of counties (cities, districts) are responsible for the specific work of financial risk prevention and disposal within their respective administrative areas, and accept the leadership of provincial and local financial supervision and management departments in business. At the same time, each As a functional department of the local people's government, local financial work departments at the same level must also accept the leadership of the government at the same level.

Many tasks in financial supervision cannot be separated from the support of various departments. The regulations stipulate the development and reform, finance, public security, human resources and social security, Housing and urban-rural development, market supervision and management, taxation and other departments shall do relevant work according to the division of responsibilities and actively support the development of local financial supervision. The specific matters and content of support are reflected in the provisions of each chapter of the regulations.

Article 6 People's governments at or above the county level and their relevant departments shall adopt various forms to popularize financial laws, regulations and financial risk prevention knowledge, and improve the public's financial knowledge level and risk prevention awareness.

Press, publishing, radio, television, Internet and other business units should carry out public welfare publicity on financial risk prevention and strengthen public opinion supervision.

[Purpose of the article]This article is about the regulations on local financial risk publicity and education

【Explanation of Articles】

The most fundamental purpose of financial literacy education is to improve the public's financial literacy. At present, the financial knowledge of the general public in our country is still generally lacking, and risk tolerance awareness and risk tolerance are also relatively low. Mainly reflected in the lack of financial knowledge and skills, unfamiliarity with financial products and businesses, and lack of financial legal knowledge. Therefore, improving the financial literacy of the public is the primary task of local financial literacy education. The implementation of various tasks and measures by the people's governments at or above the county level and their relevant departments should focus on the improvement of the public's financial literacy, rather than the improvement of individual literacy. .

Business units such as news, publishing, radio, film, television, and the Internet should also make full use of news media resources to promote financial knowledge and let the public understand financial knowledge through multiple channels, especially focusing on strengthening risk education and using typical cases to improve educational effects; take organizational measures Organize public welfare financial knowledge exhibitions, financial knowledge lectures, etc. to promote financial knowledge and explain financial hot spots, investment and financial management and other issues that the public is concerned about. The financial industry is also facing unprecedented opportunities and challenges as it develops, which requires the media and public opinion to further supervise and guide the financial industry. Taking the "Qianbao.com escape" incident as an example, multimedia tools should be used to expose the nature and negative situations of harmful financial institutions, so that investors can understand the nature of illegal institutions and improve their ability to prevent risks. As the main source of information for the public, the media has gradually become a powerful tool to assist financial regulatory authorities in implementing supervisory measures.

Article 7 Any unit or individual has the right to complain and report violations of these regulations.

Relevant departments of the people's governments at or above the county level should establish and improve a complaint and reporting mechanism, announce a unified acceptance method, and handle complaints and reports in a timely manner.

[Purpose of the article]This article is about the regulations on the local financial complaint and reporting mechanism

【Explanation of Articles】

“Complaints refer to the behavior of consumers who purchase and use goods or receive services for daily consumption and have disputes over consumer rights with operators and request the market supervision and management department to resolve the disputes. "Reporting refers to natural persons, legal persons or other Organize and report to the market supervision and management department the conduct of operators suspected of violating market supervision and management laws, regulations, and rules." Different handling procedures apply to these two types of appeals. Complaints should be handled by administrative mediation procedures, while reports should be handled by administrative law enforcement procedures. This article clarifies the masses’ right to complain and report, and requires the government to improve the complaint and reporting mechanism. In practice, due to unclear division of labor in some cases, reporting agencies shift blame among themselves, resulting in cases where reported cases are not investigated and dealt with in accordance with the law. Requiring government departments to publish a unified acceptance method will effectively reduce the leakage of secrets and retaliation due to multiple reports and transfer of documents. At the same time, with the rapid development of Internet technology and the increasingly close integration of mobile network terminals into people's lives, there are new ways to report complaints. For example, local governments are paying more and more attention to new media platforms and continuously publish and broadcast the WeChat public accounts and government Weibo of government departments through newspapers, TV stations, etc. Guide people to use online channels such as Weibo and WeChat for exposure, and increase the public’s awareness of petition channels. It is necessary to strengthen the protection of the people's right to know and improve the government's complaint and reporting mechanism. Only when the channels for the masses to participate in supervision are open and the relevant departments provide timely responses and feedback, will people be highly motivated to participate in supervision.

Chapter 2 Supervision and Management of Local Financial Organizations

Article 8 When carrying out financial activities, local financial organizations shall abide by the principles of legal operation, honesty and trustworthiness, and risk control, and shall not harm national interests, social public interests, or the legitimate rights and interests of others.

【Purpose of the article】 This article stipulates the principles that local financial organizations should abide by when carrying out financial activities

【Explanation of Articles】

1. Positive regulations

Local financial organizations carry out financial activities in accordance with three principles:

First, operate legally. Local financial organizations must carry out financial activities within the space permitted by laws and regulations. At present, my country's financial field has formed a financial legal system that is dominated by National People's Congress legislation and supplemented by administrative regulations, local regulations, government regulations, and judicial interpretations. At the central level, local financial organizations need to abide by basic laws and regulations such as the Criminal Law, the Negotiable Instruments Law, the Securities Law, the Commercial Bank Law, the Insurance Law, and the Guarantee Law in the process of engaging in business activities, as well as Special provisions such as the "Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities" targeting illegal financial activities. At the local level, the Zhejiang Provincial Government has issued a series of local normative documents such as guidance and implementation opinions based on local financial characteristics to guide local financial development.

Second, be honest and trustworthy. For local financial organizations, adhering to the principle of honesty and trustworthiness means conducting business activities honestly and in good faith, ensuring the safety of financial transactions, and maintaining the order of the financial market. Local financial organizations may have problems that violate the principle of honesty and trustworthiness in their operations, such as: credit risks, false propaganda, and unhealthy competition in the market. As an abstract principle, the principle of good faith needs to be refined and improved in continuous legal practice. The principle of good faith should be implemented in all links and stages of business activities of local financial organizations. Strengthen the enforcement of the principle of honesty and trustworthiness. We will crack down on and standardize dishonest local financial organizations, add dishonest units and individuals that have caused serious consequences to the blacklist of market competition, and severely crack down on dishonest competitive behaviors. In addition, it is necessary to establish and improve an honest and credit system with the market as the main body. The construction of the integrity and credit system relies on local financial organizations’ individual voluntary fulfillment of their integrity obligations, industry organizations’ self-discipline, and government supervision responsibilities in place.

Third, control risks. The vigorous development of the financial industry is often accompanied by high financial risks. Therefore, the prevention and control of financial risks has always been an important value pursuit of all sectors of society. Local financial organizations should improve risk prevention awareness, adopt market-oriented operations, broaden financing channels, and It is also necessary to establish a risk prediction mechanism, carefully determine the scale and method of financing, and control risks within a reasonable range. Strengthen systemic risk prevention and early warning information communication. For those that may cause or have formed major financial risks, the relevant situation shall be reported to the municipal local financial supervision and management department in a timely manner, and measures shall be taken promptly to eliminate hidden dangers and deal with risks in order to maintain the order of the financial market and protect the rights and interests of financial investors.

2. Restrictive provisions

Local financial organizations shall not damage national interests, social public interests and the legitimate rights and interests of others when conducting financial activities. In local financial activities, the legitimate rights and interests of others mainly refer to the safety and trust interests of investors. Illegal fund-raising, financial fraud and other incidents are serious infringements on the legitimate rights and interests of others. Social public interest refers to the stability of regional financial order, and good financial operating order and environment are conducive to promoting coordinated financial development and revitalizing the economy. National interests mainly refer to national financial security and the smooth operation of the economy. The spillover of local financial risks will lead to national financial risks. At the same time, the disorder of financial order and investment panic will lead to the government's credit crisis. Local financial organizations must engage in financial activities within a legal framework and must not cause undue infringement on relevant interests. If there is any infringement, they must bear corresponding legal responsibilities.

Article 9 Small loan companies, financing guarantee companies, pawn shops, financial leasing companies, commercial factoring companies, local Asset management companies, regional equity markets and various other local trading venues, farmers' professional cooperatives, and other local financial organizations stipulated in laws and administrative regulations and supervised and managed by the provincial people's government authorized by the State Council to engage in relevant financial business shall comply with laws, administrative regulations and In accordance with relevant national financial supervision and management regulations, obtain corresponding administrative licenses or go through filing procedures.

Private financing service enterprises shall register with the local financial work department of the city divided into districts in accordance with relevant provincial regulations.

[Purpose of the article]This article stipulates the establishment of local financial organizations and the development of related businesses

【Interpretation】

The first paragraph of this article makes relevant provisions on the establishment of local financial organizations and related businesses. The "Several Opinions on Serving the Real Economy, Preventing and Controlling Financial Risks and Deepening Financial Reform" issued by the Central Committee of the Communist Party of China and the State Council stipulates a total of 11 categories of objects. Private financing activities in Zhejiang Province are becoming increasingly active, and local financial organizations are developing vigorously. Therefore, these regulations include private financing service companies within the scope of supervision and provide for their establishment and related business.

The second paragraph of this article specifically stipulates the establishment and related business of private financing service enterprises, which shall be reported to the local financial affairs department of the city divided into districts in accordance with relevant provincial regulations. Department filing. The current specific details can be applied with reference to the "Wenzhou Municipal Private Financing Management Regulations".

Article 10 The local financial supervision and administration (work) departments of provinces and districted cities shall establish an information disclosure system for local financial organizations to publish and promptly update the list of local financial organizations and their related licensing and filing information in a manner that is easily accessible to the public.

[Purpose of the article]This article stipulates the need for information disclosure by local financial organizations. It aims to solve the problem of information asymmetry in local financial markets and protect the public’s right to know.

【Interpretation】

The publicity system refers to the fact that provincial and local financial regulatory authorities are responsible for the establishment, change, and termination of local financial organizations in the process of supervising local financial activities. Obligation of disclosure. In accordance with the "Regulations on the Supervision and Administration of Financing Guarantee Companies", "Pawn Management Measures", "Zhejiang Provincial Interim Provisions on Financing Leasing Management" and other regulations, local financial organizations such as small loan companies, financing guarantee companies, pawn shops, and private financing institutions implement operations License management. Local financial organizations that are established or terminated with the approval of relevant departments shall be publicly announced. The main contents of the publicity include the name, business address, registered capital, institution code, license number, remarks and file number of the local financial organization. The disclosure of this information will help investors understand the relevant information approved by local financial organizations to establish or terminate operations. Provincial and local financial regulatory authorities should establish an authoritative and credible publicity mechanism, publish and regularly update the list of financial organizations approved to be established or terminated through official platform channels, so as to ensure that audiences who need information can promptly, accurately and conveniently Find out relevant information.

Regular updates mean that local financial regulatory authorities conduct regular and strict inspections of the operations of local financial organizations, and publicize any non-compliant or Financial organizations that have been eliminated should be promptly inventoried. While liberalizing access to private investment, it is also accompanied by relevant exit laws and regulations to achieve the survival of the fittest among local financial organizations.

Local financial regulatory authorities will regularly update the list of local financial organizations, which means timely inspections of non-compliant financial organizations that have been terminated. and make it public. A sound local financial market system must be equipped with an orderly exit mechanism. The current exit mechanism mainly consists of two aspects: one is the rectification documents issued by regulatory agencies and the internal "Exit Opinions", which can be obtained from the actual exit of local regulatory authorities. Get a glimpse of its overview in action; the second is the "exit guidelines" of local industry associations. The financial regulatory authorities adopt the administrative disposal method of terminating operations, closing down and canceling. Financial regulatory authorities take administrative coercive measures in accordance with the law against financial institutions whose shareholders are unable to increase capital or are unable to reverse their difficulties through rescue, and terminate their operating activities. At the same time, the relevant financial regulatory authorities organize Or entrust the local government to organize a liquidation team to liquidate its claims and debts, and ultimately cancel its legal person status. When local financial regulatory authorities withdraw from supervision of financial organizations, they need to maintain a neutral and objective stance and find a balance between the pursuit of values such as maintaining financial order, maintaining financial market vitality, and maintaining government credibility.

Article 11 Local financial organizations shall improve their corporate governance structure, implement business compliance and risk management systems, and form effective internal checks and balances and risk prevention and control mechanisms.

Local financial organizations should strengthen equity management, standardize shareholder shareholding behavior, and centralize equity to qualified equity custody institutions in accordance with regulations. The specific measures for equity custody shall be formulated by the provincial and local financial supervision and management departments.

[Purpose of the article]The first paragraph of this article is a provision for optimizing and standardizing the internal governance structure of local financial organizations, aiming to promote local financial organizations to form an effective risk prevention and control mechanism; the second paragraph is about Jiaqun equity management , implement relevant regulations on equity custody

【Explanation of Articles】

The corporate governance structure is the most important organizational structure in the company system. Corporate governance in the narrow sense mainly refers to the relationship between shareholders, directors, supervisors and managers within the company, while corporate governance in the broad sense also includes the relationship with stakeholders. As a legal person, a company needs to have a suitable organizational structure and management structure to enable it to have decision-making and management capabilities. The corporate governance structure is an important basis for the company to effectively exercise its rights and assume responsibilities. According to the provisions of the "Company Law", the corporate governance structure consists of four parts, namely the shareholders' meeting or general meeting, the board of directors, the supervisory board and the manager. The shareholders' meeting or general meeting is composed of the company's shareholders and is the company's highest authority. The board of directors is elected by the company's general meeting of shareholders. It makes decisions on the company's development goals and major operating activities, safeguards the rights and interests of investors, and is the company's decision-making body. The board of supervisors is the company's supervisory body and plays a supervisory role in the company's finances, directors and managers' actions. The manager is appointed by the board of directors and is the executive arm of the company. The improvement of the corporate governance structure helps to establish institutional arrangements for effective identification, monitoring, early warning, and disposal of individual risks and systemic risks from the perspective of optimizing the internal structure.

Equity custody is a civil act in which an unlisted joint-stock company entrusts the management of its shareholder list to an equity custody agency. It is also a social service provided to reduce the company's operating costs in managing the shareholder list; its essence is to make up for the problems in the shareholder list of unlisted joint-stock companies. In the absence of management, an objective and impartial third party will provide unlisted joint-stock companies with a public and credible shareholder register, and provide shareholders with valid ownership certificates for the equity they hold.

Article 12 Local financial organizations shall not violate laws, regulations and relevant national provisions to provide related parties with services that conflict with the interests of the organization, and provide services to related parties that conflict with the interests of the organization. The conditions under which a party provides services shall not be better than the conditions under which similar services are provided to unrelated parties.

The controlling shareholders, actual controllers, directors, supervisors, senior managers or operating managers of local financial organizations shall comply with laws, regulations and Relevant national regulations and the articles of association stipulate the avoidance of voting on related party transactions.

[Purpose of the article]This article aims to regulate related-party transactions and prohibit local financial organizations from using related-party transactions to harm the interests of the organization. Related parties should recuse themselves from voting on related-party transactions

【Explanation of Articles】

Paragraph 1 of this article first clarifies the prohibitive provisions on related transactions of local financial organizations. According to the provisions of my country's Company Law, affiliated relationships refer to the relationships between a company's controlling shareholders, actual controllers, directors, supervisors, and senior managers and the companies they directly or indirectly control, as well as other relationships that may lead to the transfer of company interests. The related parties of local financial organizations in this article need to be judged according to this standard. If there are shareholdings, contracts or other means such as personnel control, agreement to control voting rights, etc. between local financial organizations and related parties, they will be recognized as local financial organizations. Related parties of financial organizations. This clause does not specify the scope of services provided, that is, the specific types of related-party transactions, but the possible forms of related-party transactions can be inferred from the nature of local financial organizations, such as: financing, guarantees, commercial factoring activities, special financing Financial services activities such as leasing activities. Not all related party transactions are prohibited. Only financial organizations that violate laws, regulations and relevant national provisions by providing services to their related parties that conflict with the interests of the organization are prohibited. Such prohibitive provisions are scattered in various legal documents, such as Article 21 of the Company Law, Article 123, paragraph 2, of the Securities Law, Article 109 of the Insurance Law, etc. In addition, the conditions for local financial organizations to provide services to related parties shall not be better than the conditions for providing similar services to unrelated parties. Providing services to related parties under conditions that are better than those of non-related parties is an act that harms the interests of the financial organization.

The second paragraph of this article clarifies the matters for related parties to avoid voting on related party transactions. The subjects to be avoided are the controlling shareholders, actual controllers, directors, supervisors, senior managers or operating managers of local financial organizations. Voting meetings not only include shareholders’ meetings, board meetings, etc., but also include meetings or voting involving supervisors, senior managers or operating managers to decide on related-party transactions. The scope of subjects that need to be avoided is very wide, so the focus is on the execution of the voting. Matters related to related party transactions are not subject to voting. In addition, avoidance is not absolute. It should only be avoided when it is stipulated in laws, regulations, relevant national provisions and the articles of association.

Article 13 Local financial organizations can carry out business innovation on the premise of compliance with laws and regulations and controllable risks. Provincial and local financial regulatory authorities may implement prudent supervision and management based on business characteristics and risk conditions.

[Purpose of the article]This article mainly stipulates that the prerequisite for provincial and local financial regulatory authorities to carry out business innovation is legal compliance and risk control, and the principles of prudent supervision must be followed during the regulatory process

【Interpretation】

This article clearly stipulates that local financial organizations carry out business innovation under the premise of compliance with laws and regulations and controllable risks. While financial innovation facilitates enterprises and the public, it can also induce financial risks and create problems for supervision. For example, in financial technology, various financial institutions have innovated in areas such as scenarios, customer acquisition, assets, and risk control, which has led to improvements in efficiency and profitability. At the same time, the development of financial technology and its widespread application in non-traditional financial formats have greatly facilitated local governments to promote local economic development through financial innovation. However, the emergence of financial technology has brought new risks and challenges, and countless regulatory problems have emerged. Therefore, local financial organizations need to strictly abide by the prerequisites of legal compliance and controllable risks when carrying out business innovation. Legal compliance mainly refers to the level of legality. Local financial organizations must not violate the provisions of relevant legal documents when conducting business. Risk controllability mainly means that local financial organizations themselves need to evaluate the risks of their own business operations, ensure the controllability of risks at a reasonable level, and prohibit the development of high-risk or uncontrollable risk businesses.

Provincial and local financial regulatory authorities conduct prudential supervision based on business characteristics and risk conditions. This article ensures that local financial organizations carry out business innovation in compliance with laws and regulations. It also stipulates that the supervision of provincial and local financial regulatory authorities cannot be "one size fits all" and must be analyzed based on the business characteristics and risk conditions of specific industries and organizations. Generally speaking, it is to pursue high-quality development on the basis of compliance, while focusing on preventing and resolving financial risks and promoting the development and innovation of the industry. Local financial organizations are an important part of my country's financial system and play an increasingly important role in regional economic development. At the same time, the obligatory innovation of local financial organizations must not be overly restricted. Provincial and local financial regulatory authorities should establish a prudent and inclusive regulatory concept to leave room for the development of financial innovation while maintaining the bottom line of risk.

Article 14 When local financial organizations registered and established outside the province carry out business within the scope of business in accordance with the law within the administrative region of the province, they shall regularly report their business operations to the provincial and local financial supervision and management departments. The specific business scope and specific procedures that need to be reported shall be determined by the provincial and local financial supervision and management departments.

If the state imposes regional restrictions on the business activities of local financial organizations, such regulations shall prevail.

[Purpose of the article]This article is about the rules for local financial organizations to carry out cross-regional business activities

【Explanation of Articles】

For cross-regional business activities carried out by local financial organizations, the regulations regulate them from two aspects. On the one hand, for local financial organizations registered and established outside the province and engaged in local financial activities in Zhejiang, although these local financial organizations have carried out cross-regional business activities, the regulations uphold the principle of equal treatment and treat them equally. Local financial organizations registered and established outside the province The business development status shall be reported regularly to the provincial and local financial supervision and management departments. Such regulations are conducive to strengthening the responsibilities of local financial supervision, strengthening the coordination and cooperation of local financial supervision, and strictly preventing cross-regional, cross-market, and cross-industry risks from overlapping into major systemic risks. On the other hand, all local financial organizations in Zhejiang Province, whether registered and established within the province or outside the province, must comply with national regulations on regional restrictions on the business activities of local financial organizations. Local finance has distinct territorial characteristics. The establishment and development of local finance mainly relies on local economic and social conditions. The risk prevention of local finance mainly relies on local information resources. Only based on the geographical advantages of local financial organizations and their familiarity with the situation in their operating areas, can local financial organizations minimize information asymmetry and reduce operating risks. Therefore, local financial organizations generally should not carry out cross-border cross-border investment projects that are too large. Regional operations. However, due to the development of technology, especially the vigorous application of Internet technology, local financial organizations are increasingly moving out of their respective cities and counties, and even moving towards national operations. This situation is inevitable and is in line with the growth of enterprises from small to large. The development process from weak to strong. For this kind of cross-regional operations, local financial organizations already have the characteristics of national finance, and relevant local financial organizations must comply with the country’s regional restrictions on the business activities of local financial organizations.

Article 15 Local financial organizations shall, in accordance with relevant national and provincial regulations, submit financial accounting reports, operating reports, Annual audit reports and other materials issued by certified public accountants, and reports on major shareholders’ operating difficulties, loss of contact with principal responsible persons, occurrence of liquidity risks and other major events that seriously affect operations. The submitted materials and reported matters should be true, accurate and complete.

Provincial and local financial supervision and management departments should conduct off-site supervision and management of the business activities and risk status of local financial organizations, and organize the establishment of supervision and management of local financial organizations. Information system. Local financial organizations shall access the information system as required, and may submit or report the materials or matters specified in the preceding paragraph through the information system.

Local financial organizations shall submit comprehensive statistical information on the financial industry to the dispatched offices of the People's Bank of China in accordance with regulations.

[Purpose of the article]This clause clearly stipulates the reporting obligations that local financial organizations need to fulfill

【Interpretation】

1. Submission of financial information

According to the requirements of the "Company Law": "Article 164 The company shall report at the end of each accounting year Financial accounting reports are prepared on time and audited by an accounting firm in accordance with the law. ”In addition, each type of local financial organization also needs to comply with its relevant regulatory requirements. For example, the "Regulations on the Supervision and Administration of Financing Guarantee Companies" (State Council Order No. 683) stipulates: "Financing guarantee companies shall submit operating reports, financial reports, and annual audit reports issued by certified public accountants to the supervisory and administrative departments as required. Documents and information. ”

2. Submission of major matters

Among them, it is not difficult to understand the reporting of "major shareholders or partners having operational difficulties and principal responsible persons losing contact". The following will introduce the concept of liquidity risk. Liquidity risk refers to the risk that commercial banks are unable to obtain sufficient funds in a timely manner at a reasonable cost to repay maturing debts, fulfill other payment obligations and meet other funding needs for normal business operations. The liquidity risk of an enterprise means that the enterprise is unable to obtain sufficient funds in a timely manner at a reasonable cost to repay maturing debts, fulfill other payment obligations and meet other funding needs for normal business operations. In view of the characteristics of local financial organizations, in order to avoid the occurrence of "thunder waves", the "Zhejiang Province Local Financial Regulations (Draft)" requires submissions when matters affecting operations occur to improve the response capabilities of regulatory authorities.

3. Off-site supervision and management

Through the off-site supervision system, supervision data of various local financial organizations and various functional units can be transmitted to local financial supervision departments in a timely manner , allowing supervisory personnel to grasp the operating status of local financial institutions anytime and anywhere, supplemented by targeted on-site inspections, to effectively improve the efficiency and level of daily supervision and inspection work. Information submission through local financial organizations is a need to promote the healthy development of local financial organizations; information submission by local financial organizations also meets the management needs of provincial and local financial regulatory departments and helps clarify the work responsibilities and duties of provincial and local financial regulatory departments. Positioning and guiding provincial and local financial regulatory authorities to strengthen supervision of local financial organizations within their jurisdiction.

4. Information related to comprehensive statistics of the financial industry

According to the "Opinions of the General Office of the State Council on Comprehensively Promoting Comprehensive Statistics in the Financial Industry" (Guobanfa [2018] No. 18 ) regulations: "The People's Bank of China and other central and local financial management departments collect data directly from financial institutions or local financial organizations simultaneously; for current statistics, the People's Bank of China coordinates other central and local financial management departments to collect data and wait for the national financial After the basic database is completed, the benchmarking and import will be coordinated to ensure the timeliness and completeness of the sources of comprehensive statistical data in the financial industry. ”It is a nationwide unified requirement for local financial organizations to submit information related to comprehensive statistics on the financial industry, which is conducive to proactively preventing and defusing systemic financial risks and maintaining financial stability.

Article 16 When local financial organizations issue products or provide services, they shall alert investors or consumers of risks and disclose information that may affect their decision-making.

The information disclosed by local financial organizations should be true, It must be accurate and complete without any false records, misleading statements or major omissions.

[Purpose of the article]This article is about the risk warning and information disclosure obligations of local financial organizations

【Explanation of Articles】

Risk warnings and information disclosure require all local financial organizations, in the process of issuing products or providing services, if there is information that may affect investors or consumers, they must release this information to all investors and consumers of the financial organization. First of all, risk warnings and mandatory information disclosure obligations are necessary. Financial organizations and their investors or consumers are not equal economic entities. Financial organizations have natural advantages and can easily obtain transaction or operating information. The information asymmetry situation makes risk warnings and information disclosure are necessary. Secondly, the time point for risk warning and information disclosure not only needs to be when the financial organization issues products or provides services. This obligation continues to exist while the financial organization is engaged in relevant business. As long as information that affects the decision-making of relevant people appears, the information will be Disclosure. Finally, as long as there is information that may affect decision-making, financial organizations need to bear notification and disclosure obligations. This is not premised on the absolute impact on decision-making. This is only a procedural obligation of local financial organizations in the process of issuing products or providing services.

The information disclosed by local financial organizations should be true, accurate and complete. This is a basic requirement for information disclosure and also a guarantee for solving information The fundamental guarantee for asymmetry problems. The authenticity of information is the foundation, accuracy ensures the quality of information, and completeness is the control of the quantity of information. False records, misleading statements or major omissions are prohibited from disclosing information. The authenticity of the disclosed information determines the prohibition of false records. Therefore, financial organizers must be prohibited from deliberately disclosing false information or publishing misleading information, because once the information is false and misleading, it will be difficult for investors or consumers to rely on the information to make decisions. Serious losses may occur. In addition, negligent behavior by financial organizers is also likely to violate information disclosure obligations. If there are major omissions in the information released by a financial organization, it still fails to fulfill its information disclosure obligations. There are many opinions on the materiality standard of material omissions in the academic community. In practice, which information is material information and thus constitutes a material omission requires a comprehensive judgment based on the subjective factors of investors or consumers and the objective and material factors of the information.

Article 17 Local financial organizations that provide services for the issuance of debt financing business products shall establish an investor suitability system to ensure that appropriate products are sold to suitable investors.

[Purpose of the article]This article is about the investor suitability system for the issuance of debt financing business products

【Interpretation】

Construction of investor suitability systemis a powerful means to protect financial investors. This system refers to the products and services provided by financial organizations and the financial status, investment objectives, and risk tolerance of investors. , investment needs, knowledge and experience, etc. Because in the financial market, there are high-risk financial products such as financial products, insurance investment products, trust financial products, brokerage collective financial plans, leveraged fund shares, options and other over-the-counter derivatives. If the risk is different from the risk borne by investors, A mismatch in capabilities can easily damage the interests of investors and even threaten the stability of the entire financial market. The goal of the system is to allow financial organizations to "know your customer" in order to "sell the right products to the right investors." The financial market has always operated based on the concept of "caveat emptor". However, if financial organizations violate this regulation by promoting and selling high-risk financial products and providing high-risk financial services to inappropriate investors, there will be " "Seller shall be responsible", which is also the premise and basis of "caveat emptor".

Investor suitability systemApplicable only when local financial organizations provide services for the issuance of debt financing business products. First of all, regardless of whether the investor is specific, as long as it involves the issuance of debt financing business products, it must comply with this system. Secondly, the product must be a debt financing business, which refers to the incorporation of funds through loans from banks or non-bank financial institutions or the issuance of bonds. Debt financing can bring leverage returns, but there are risks caused by high leverage ratios. Therefore, investors need to be protected. Finally, the Supreme People's Court's notice on the issuance of the "Minutes of the National Courts' Civil and Commercial Trial Work Conference" also specifically stipulates the suitability obligation in the trial of financial consumer rights protection dispute cases. Particular emphasis is placed on the distribution of the burden of proof, and matters not yet stipulated in these articles should be subject to this provision. For example, financial organizations must provide evidence to prove whether they have fulfilled the requirements of the suitability system; in the process of reporting obligations, financial organizations should combine objective standards that reasonable people can understand and subjective standards that investors can understand to determine whether the financial organization has fulfilled its obligations. The obligation to inform and explain has been fulfilled; if the financial organization itself has fulfilled the obligations of the investor suitability system, but if it suffers losses in financial activities due to the investor's own fault, the investor shall be responsible for it. The reasons given by the investor include: deliberately providing false information and the financial organization did not know or should not have known that the information was false; the investor refused to listen to the advice of the financial organization and ultimately purchased the product in violation of regulations; the investor had considerable investment experience and the financial organization could Prove that the violation of the suitability obligation did not affect the investor's decision-making, etc.

Article 18 If private lending falls under any of the following circumstances, the borrower shall, within fifteen days from the date of signing the contract, submit a copy of the contract and the loan delivery voucher to the local financial work department of the districted city or its entrusted Private financing public service agency registration:

(1) The amount of a single loan or the cumulative amount of loans from the same lender exceeds three million yuan;

(2) The balance of principal and interest on the loan reaches more than 10 million yuan;

(3) Cumulatively borrowing money from more than 30 specific persons.

The lender has the right to urge the borrower to fulfill the filing obligations stipulated in the preceding paragraph, and may also perform it voluntarily.

If the local financial work department of a districted city or the private financing public service agency entrusted by it provides private lending information filing services, the filing information shall be submitted to the provincial and local financial supervision quarterly management department.

Local financial supervision and administration (work) departments, private financing public service agencies and their staff shall keep confidential the private lending filing information they learn during their work.

Private lending registration information can be queried through the local financial work department of a districted city or the private financing public service agency entrusted by it. When inquiring about filing information, valid identity certificate of the inquirer and authorization certificate of the borrower shall be provided. If the local financial work department of a districted city or the private financing public service agency entrusted by it provides record information to the inquirer, the lender information shall be concealed.

[Purpose of the article]The first paragraph of this article is about the regulations on private lending registration by borrowers and lenders. The second paragraph of this article is the provision for voluntary filing by the lender; the third paragraph of this article is the provision for information submission by private financing public service agencies. Paragraphs 4 and 5 of this article are provisions for protecting private lending filing information and the privacy of the parties involved

【Explanation of Articles】

1.民间借贷的性质和有关规定：The Supreme People's Court pointed out in its "Reply to the Suggestions on Amending the Provisions on Borrowing Interest in the "Supreme People's Court's Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases" that private lending serves as a reasonable supplement to formal finance. Our country's legal provisions on private lending are concentrated in the "Contract Law of the People's Republic of China", "Several Opinions of the Supreme People's Court on the Trial of Lending Cases by the People's Courts", and "The Supreme People's Court on Properly Trialing Private Lending Dispute Cases in accordance with the Law to Promote Economic Development and Maintain Social Stability" Notice" and other documents. Among them, Article 26 of the "Several Opinions of the Supreme People's Court on the Trial of Loan Cases by People's Courts" sets limits on loan interest rates of 24% and 36%.

2. Three situations of private lending information filing：(1) The amount of a single loan exceeds three million yuan. (2) The principal and interest balance of the loan reaches more than 10 million yuan. (3) Borrow money from more than 30 specific persons. This paragraph stipulates the circumstances that require registration from the perspective of amount and number of people. The purpose is to incorporate private lending activities into administrative management procedures through the implementation of an information filing system and legalize lending behavior to eliminate the crime of illegally absorbing public deposits and the crime of fund-raising fraud. . Therefore, when a borrower raises a large amount of funds or raises funds from a large number of people, security can be obtained by registering the information. Taking financial rights as the first priority and cooperating with the government's normative guidance, through the loan registration and filing system, bringing large-amount and majority loans into the scope of government administrative management is a good exploration of standardizing and guiding private financing behavior.

3. Exemption from the compulsory filing system ：The filing system stipulated in this paragraph does not mandate the filing of all lending activities, but is differentiated. The voluntary principle is adopted for lending activities with small amounts and few parties involved, and mandatory filing is exempted. This light-touch supervision method fully respects the customary and private rights of private lending. The exemption from the mandatory filing system in this paragraph only compels borrowers to register, and adopts a voluntary principle for lenders to register and file, and encourages them to register and file to facilitate litigation. Through the loan information filing and registration system, lending activities can be given appropriate legality and the "illegality" requirements of illegal fund-raising and other criminal activities can be eliminated.

4. Private financing public service agencies：Private financing public service agencies facilitate private loan filing and registration . Private financing public service agencies can provide services such as fund supply and demand information release and consultation, risk assessment, offline loan matching, equity transfer, and private lending information registration.

Article 19 If a private lending party presents a private lending contract, a loan delivery voucher and a filing certificate to apply to a notary institution for notarization with compulsory enforcement effect, the notary institution shall handle the matter in accordance with the law.

Financial institutions should accept the performance of filing obligations by private lending parties as important credit information; and use the performance of repayment obligations in accordance with the contract as good credit certification materials. For private loans that have been registered in accordance with these regulations, financial institutions shall not regard them as negative factors affecting the borrower's credit rating. However, the borrower's large borrowing beyond its own repayment ability and failure to perform repayment obligations as agreed in the contract are legally deemed to constitute Except for bad information.

The people's governments of cities and counties (cities, districts) divided into districts shall provide policy support to parties who perform their private lending filing obligations.

[Purpose of the Article]

This article is the regulation for the borrower to apply to the notary institution for notarization of the effect of enforcement

【Explanation of Articles】

According to the provisions of Article 2 of the "Notarization Law of the People's Republic of China" (hereinafter referred to as the "Notarization Law"), notarization is a notarization institution based on the natural person, legal person or Applications from other organizations are activities to prove the authenticity and legality of civil legal acts, legally significant facts and documents in accordance with legal procedures. Article 37 of the "Notarization Law" stipulates the effectiveness of notarization. If the debtor fails to perform or performs inappropriately the notarized debt document that contains payment as its content and states the debtor's willingness to accept enforcement commitments, the creditor may file an application with the competent authority in accordance with the law. Apply to the competent People's Court for execution. Notarization of enforcement effectiveness refers to a notarized document that confers enforcement effectiveness on a creditor's right. When the debtor fails to perform its obligations, the creditor can apply directly to the People's Court with jurisdiction for enforcement without going through litigation procedures. The People's Court shall take enforcement measures.

According to the provisions of this article, the performance of filing obligations by private lending parties as agreed can be accepted as important credit information, and failure to perform repayment obligations as agreed in the contract will be considered as important credit information. What is determined to constitute bad information according to law can also be used as negative factors. The filing information itself shall not be considered as a negative factor. Since private lending is exempted from the compulsory filing system, only borrowers are forced to register, and lenders are encouraged to register and file on a voluntary basis. In order to facilitate litigation, this article stipulates that parties to private lending can apply to a notary agency to grant compulsory enforcement. Notarization of validity to obtain more convenient litigation. In order to increase the enthusiasm of private loan parties for registration, paragraph 2 of this article specifically stipulates that financial institutions shall not consider loan registration information as a negative factor. The only factors that financial institutions consider are whether the parties have performed the contract as agreed and whether it has been deemed to constitute adverse information in accordance with the law. Paragraph 3 of this article also stipulates that the government will provide policy support to parties who perform their private lending filing obligations. This is also for the purpose of increasing the parties' enthusiasm for filing and notarization, and promoting the parties' honest performance of the contract.

Article 20: Provincial local financial supervision and management departments may conduct on-site inspections of local financial organizations in accordance with the needs of supervision and management in accordance with the law, and have the right to take the following measures:

(1) Ask relevant staff;

(2) Interview with its legal representative, actual controller, major shareholders, directors, supervisors, senior managers or operating managers;

(3) Check and copy documents and materials related to inspection matters;

(4) Register and preserve in advance documents, materials, and electronic equipment that may be transferred, concealed, damaged, or forged;

(5) Check relevant business data management systems;

(6) Other measures that can be taken in accordance with the law.

The local financial work departments of cities and counties (cities, districts) divided into districts may conduct on-site inspections of local financial organizations with hidden financial risks in accordance with the law, and have the right to take the measures specified in the preceding paragraph. measures.

[Purpose of the Article]Main provisions of this article Provincial local financial regulatory authorities have the power to conduct on-site supervision of local financial organizations and stipulate on-site supervision measures in a non-exhaustive list.

【Explanation of Articles】

1. About the definition of "on-site inspection"

The on-site inspection referred to in this article means that the provincial and local financial regulatory authorities go deep into local financial organizations to conduct system, business inspection and risk judgment analysis, and achieve comprehensive and in-depth understanding and judgment by verifying and clarifying the problems and doubts discovered during off-site supervision. A method of on-site inspection of financial enterprises and operations and risk conditions. On-site inspection alsoYes Adopt new inspection methods such as online inspection and letter inquiry.

2. Measures for on-site supervision

When the provincial and local financial regulatory authorities supervise local financial organizations, they can conduct on-site inspections in accordance with their authority, but they need to comply with the requirements of prudential supervision. Specific measures As follows:

Ask the system. The local financial regulatory authorities are asking relevant staff. The scope of "relevant staff" is wide, including not only relevant staff of local financial organizations, but also all staff related to the production and operation of local financial organizations.

Interview system. Interviews are generally an accountability talk system conducted by superior organizational departments to subordinate organizational departments that have not performed or failed to fully and correctly perform their duties, or have failed to complete important tasks on time. Local financial regulatory authorities may conduct interviews with responsible actual controllers, major shareholders, legal representatives, directors, supervisors, and senior managers.

Check and copy system. Consulting refers to finding and reading documents and materials related to on-site inspection; copying refers to making a copy of documents and materials related to on-site inspection by printing, copying, copying, rubbing, recording, video recording, ripping, scanning, etc. One or more portions. This paragraph stipulates that the objects of inspection and copying are documents and materials related to inspection matters. When the local financial organization believes that the relevant documents and materials reviewed may harm the legitimate interests of the company, it may apply to refuse to review and copy them. For example: accounting books. Accounting books involve business secrets and important operating information of local financial organizations. They are inconvenient to copy and can only be provided for review when necessary.

Advanced registration and preservation system. The advance registration and preservation system is to better preserve relevant evidence and take advance registration measures for documents and information that may have been transferred, concealed, damaged or forged by local financial organizations.

Check the business data management system system. The business data management system is a set of data analysis and management module systems with enterprise information data as the core. Business data mainly refers to transaction data, flow data, accounting data, borrowing data, loan data and other data related to business operations. From these data, we can understand the operating conditions of local financial organizations.

Other supervisory and management measures that can be taken. This is a safety net clause that can be applied in accordance with the provisions of the higher-level law; provincial and local financial regulatory authorities can also issue corresponding regulations to supplement it based on the actual situation.

Article 21 If a local financial organization is dissolved or declared bankrupt, clear arrangements for the undertaking of relevant business and debt settlement shall be made in accordance with the law.

Provincial and local financial supervision and management departments can guide and supervise the liquidation of local financial organizations.

[Purpose of the article]This article mainly stipulates the regulations on local financial dissolution, bankruptcy and other market launches

【Explanation of Articles】

The first paragraph of this article stipulates the exit mechanism of local financial organizations. Local financial organizations play a strategic role in SME financing. Zhejiang's private financial organizations are highly active, involve a wide range of people, and span a large region. If the withdrawal of local financial organizations is not properly handled, the interests of investors and consumers will be harmed. Therefore, improving the exit mechanism of local financial organizations is a necessary condition for maintaining the stability of local finance in Zhejiang Province and promoting the healthy and healthy development of local finance in Zhejiang Province:

1. Dissolution system of local financial organizations

Company dissolution is the trigger for company liquidation. In addition to mergers and divisions, company liquidation is often the result of company dissolution. Article 180 of the "Company Law" stipulates the reasons for company dissolution, of which items (1) to (3) are voluntary dissolution of the company, item (4) is administrative compulsory dissolution, and item (5) is court-ordered dissolution.

2. Liquidation system of local financial organizations

Company liquidation refers to the act of liquidating the company's claims and debts in accordance with the law after the company has legal reasons for dissolution or reasons for dissolution stipulated in the company's articles of association. According to the provisions of the "Company Law", when a company is dissolved due to a resolution of the shareholders' meeting, due to the expiration of the business period specified in the company's articles of association, due to a deadlock, or forced dissolution due to violation of laws, the company shall establish a liquidation group within 15 days. The company's liquidation team refers to the organization established in accordance with the law to handle the company's claims and debts after the company's liquidation occurs. The company's liquidation team is the representative of the company during the liquidation period. The types of liquidation of local financial organizations are mainly divided into bankruptcy liquidation and non-bankruptcy liquidation.

3. The bankruptcy system of local financial organizations

Bankruptcy refers to a legal system in which a creditor or debtor petitions the court to declare bankruptcy and repay debts in accordance with bankruptcy procedures when a debtor is unable to repay debts or becomes insolvent. The bankruptcy system in the narrow sense only refers to the bankruptcy liquidation system, while the bankruptcy system in the broad sense also includes the reorganization and reconciliation system. According to Article 2 of the Bankruptcy Law, if an enterprise legal person is unable to pay off its due debts and its assets are insufficient to pay off all debts or it is obviously lacking in repayment ability, the debts shall be liquidated in accordance with the provisions of this Law. If an enterprise legal person falls under the circumstances specified in the preceding paragraph, or is likely to lose its ability to pay its debts, it may be reorganized in accordance with the provisions of this Law.

The second paragraph of this article stipulates that provincial and local financial regulatory authorities must give full play to their guidance and supervisory roles. On the one hand, provincial and local financial regulatory authorities should focus on economic development while performing their service and guidance functions during the liquidation process. First, provincial and local financial regulatory authorities should give full play to their professional advantages to guide local financial organizations to exit the market smoothly and minimize unstable factors. Second, improve the local financial regulatory coordination mechanism. Third, establish an information sharing mechanism to share financial data and break down information islands, so as to better perform the liquidation work of local financial organizations. On the other hand, if a local financial organization is disbanded or goes bankrupt due to poor management or other reasons, a liquidation team should be established in accordance with the law to conduct liquidation and withdraw from the market in a legal and orderly manner. Provincial and local financial regulatory authorities should perform their supervisory functions well, especially to safeguard the interests of investors. First of all, if members of the supervision and liquidation team discover any illegal or illegal behavior such as bending the law for personal gain, concealing or destroying evidence, they should promptly stop it and report it to their superiors or competent departments. Second, the documents and materials related to the supervision of liquidation and the documents assisting in liquidation are true, accurate and complete. For any doubtful matters, the provincial and local financial regulatory authorities should ask questions, and the provincial and local financial organizations should respond within a certain period of time. Third, supervise the behavior of shareholders, actual controllers, directors, supervisors, and senior managers of local financial organizations during the liquidation process.