On 18 May 2018 the China Banking & Insurance Regulatory Commission (CBIRC) issued Interim Measures Governing Personal Income Tax-Deferred Pension Business (the Measures).
The Measures are based on the 7 May 2018 guidance of the same name (see our earlier newsletter), additionally setting out highly prescriptive and detailed requirements in the following areas:
- The approval processes to be followed for tax-deferred pension (TDP) products, including publicly-available explanatory notes and guides.
- Insurance companies (Insurers) intending to undertake TDP business must satisfy 12 separate qualifying criteria, including (i) both registered capital and net assets being in excess of RMB 1.5 billion; and (ii) having conducted pension or annuities business within China continuously for at least three years.
- Insurers undertaking TDP business must have a highly visible and accessible TDP product disclosure link on their main public website, the content of which link sets out very clearly, for the public at large, (i) the key terms and conditions of all its TDP products; and (ii) avenues for inquiries and complaints.