(Yicai Global) Oct. 12 -- The China Insurance Regulatory Commission (CIRC) has halted several key deals between five insurance companies -- Pearl River Life Insurance Co., Shanghai Life Insurance Co., Sunshine Life Insurance Corp., Bohai Life Insurance Corp. and Junkang Life Insurance Co. -- and their affiliates.
The CIRC issued five regulatory orders to the firms yesterday, accusing them of violating regulations related to ‘three boards and management’ (boards of shareholders, directors and supervisors as well as senior management) operations, related-party transactions, compliance and internal control, internal audit, staff work appraisal and incentive schemes.
The regulator barred the five groups from directly or indirectly conducting certain transactions with their affiliates for six months. The ban will be followed by a three-month observation period, during which the regulator will scrutinize the companies’ implementation of regulatory measures and decide how to follow up accordingly.
Junkang and Bohai committed serious violations of share entrustment and equity pledge related regulations, respectively. The CIRC criticized the other three insurers of minor non-compliance with requirements on senior managers’ board meeting attendance and related-party transaction management.