Beijing to Establish Municipal Association to Supervise P2P Online Lending Platforms
Sohu, 5/27/16
The Beijing Municipal Bureau of Financial Work recently introduced a new "Beijing model" for online finance industry management, which it calls the "1+3+N" model, that includes establishing a P2P online lending industry association to monitor platforms based in the city. The Bureau also said that it will communicate with commercial banks to help finance platforms and banks form funds depository partnerships.
The "1" in the "1+3+N" model refers to establishing an Internet lending industry association, the "3" refers to three mandatory processes including product registration, funds depository management, and information disclosures, and the "N" refers to establishing a series of specialized work committees to address legal, technical, risk control, product, and publicity issues. The Internet lending industry association will be responsible for overseeing P2P online lending platform product registration, funds depository management, and information disclosure.
The Bureau said that platforms must register all lending products, wealth management products, and debt transfer products they offer with the association. Information disclosures should include information about companies, products, and business operations, and company details should cover each business's operating scope, shareholders, qualifications, licenses, management team, and employees. Business operation information should include company financial data, business areas, partners, ratings, and funds under management.
Keywords: regulation Beijing Municipal Bureau of Financial Work Internet industry association P2P online lending financial services
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