(Yicai Global) July 27 -- The China Banking Regulatory Commission and Ministry of Civil Affairs have issued Measures for Charitable Trust Management, a document marking the foundation of the country's charitable trust regulation system.
The measures add incentive clauses for trust companies, said Chang Miao, a researcher at Financial Law Newsletter. Article 45 states trust companies can operate regardless of venture capital and don't need to subscribe to industry protection funds to provide charitable trust services.
The new measures also clarify scope of availability and unavailability of charitable trusts. For example, Article 30 states that property under by charitable trusts can be applied to low-risk assets like bank deposits, government bonds, central bank bills, financial banks and monetary market funds, so long as it is legal and safe.
Statistics show that since the Charity Law was brought in on Sep. 1, 2016, some 32 charitable trusts have been set up and received around CNY124 million (USD18 million) to cover public welfare issues like poverty alleviation, education and China's 'left-behind' children.
The Civil Affairs Department and banking supervisors will cooperate regularly to strengthen mid- and post-event regulation and improve the validity of supervision, an official at the CBRC said.