Core Viewpoint - The National Financial Regulatory Administration has issued a revised "Trust Company Management Measures," marking the first comprehensive revision since its implementation in 2007, effective from January 1, 2026, aimed at enhancing regulatory frameworks and risk management in the trust industry [1]. Summary by Sections Minimum Capital Requirements and Business Restrictions - The minimum registered capital for trust companies has been raised from 300 million RMB to 500 million RMB or its equivalent in freely convertible currency, requiring a one-time cash capital contribution [3]. - Trust companies are mandated to focus on their core responsibilities and adhere to the principle of "seller responsibility, buyer risk," breaking the rigid guarantee of returns [3]. - Multiple business red lines have been established, prohibiting promises of capital protection, misleading investors, and engaging in certain high-risk activities [3]. Business Structure and Operations - The revised measures restructure the business scope of trust companies, limiting operations to asset service trusts, asset management trusts, and charitable trusts [5]. - New provisions allow trust companies to apply for liquidity loans from shareholders and the Trust Industry Guarantee Fund, while prohibiting external guarantees [5][6]. Corporate Governance Reforms - The measures enhance corporate governance by requiring the establishment of a specialized committee for the protection of client rights, led by independent directors [7]. - Trust companies must conduct regular evaluations of shareholders and report any violations, with provisions for whistleblowing by employees and external auditors [7][8]. Risk Management and Internal Controls - The measures emphasize the need for robust internal controls and risk management, focusing on compliance and operational risk [10]. - Trust companies are required to conduct annual external audits covering all business areas, ensuring comprehensive oversight [10]. Cultural and Ethical Standards - Trust companies are encouraged to foster a culture of integrity and compliance, promoting principles such as honesty, prudence, and legal adherence [9].