Core Viewpoint - The recent revision of the "Trust Company Management Measures" aims to promote the trust industry to focus on its core responsibilities, deepen reform and transformation, and effectively prevent risks [1] Summary by Relevant Sections Focus on Core Responsibilities - The revised measures emphasize the importance of the trust company's core business, adjusting the scope of operations to align with the role of a trustee, and regulating asset service trusts, asset management trusts, and charitable trusts [2] - The principle of "seller responsibility, buyer self-bear; seller liability, compensation according to responsibility" is established, breaking the rigid repayment model [2] Governance and Management - The measures require trust companies to integrate party building with corporate governance, enhancing the checks and balances within governance mechanisms [2] - There is a focus on strengthening shareholder behavior and managing related party transactions, along with establishing a scientific internal assessment and incentive mechanism [2] Risk Prevention and Control - Trust companies are mandated to establish a comprehensive risk management system, including the appointment of a chief compliance officer and the management of reputation and information technology risks [3] - The new regulations prohibit practices such as fund pooling, channel business, and rigid repayment, which have been major causes of past risks [3] - Trust companies must ensure the separation of proprietary assets from trust assets to prevent interest transfer and mitigate risk transmission [3] Regulatory Requirements - The measures increase the minimum registered capital for trust companies and enhance capital and provision management [2] - There is a clear requirement for risk disposal mechanisms and the implementation of tiered and classified regulatory requirements [2] - The financial regulatory authority will monitor the progress of rectification plans as a basis for classified supervision [4]

Core Viewpoint - The revised "Trust Company Management Measures" aims to drive the trust industry back to its core responsibility of "acting on behalf of others and managing finances," enhancing the industry's ability to serve the real economy and promoting high-quality development [1][2][3]. Trust System Construction - The regulatory framework for the trust industry is evolving rapidly, with the new measures set to take effect on January 1, 2026, following a public consultation that began in April 2023 [2][3]. - The revised measures emphasize the need for trust companies to focus on their core business areas, moving away from homogenized competition towards differentiated and specialized development [2][3]. Risk Management - The new regulations introduce stricter capital constraints and risk management mechanisms, aiming to enhance the overall risk resistance of the industry [2][3][6]. - Key measures include raising the minimum registered capital requirements, appointing chief risk compliance officers, and prohibiting high-risk practices such as fund pooling and channel business [6][7]. Focus on Beneficiary Rights - The revised measures highlight the importance of maximizing the legal rights of beneficiaries, requiring trust companies to adhere to their fiduciary duties and manage trust affairs in the best interest of beneficiaries [4][5]. - A specialized committee for the protection of beneficiary rights will be established within trust companies, ensuring that beneficiary interests are prioritized in case of conflicts [5]. Industry Evolution - The new regulations are expected to accelerate the elimination of weaker players in the trust industry, concentrating resources among stronger institutions capable of meeting the new requirements [7]. - Companies that adapt to the new compliance and innovation-focused environment will likely gain a competitive edge, while those relying on traditional high-leverage models may face significant challenges [7].

Core Viewpoint - The National Financial Supervision Administration has revised the "Management Measures for Trust Companies" to promote the trust industry's adherence to its core functions, deepen reform and transformation, and effectively prevent risks [1] Group 1: Business Scope and Practices - The revised measures emphasize the core business of trust companies, adjusting their business scope to focus on trustee roles and regulating asset service trusts, asset management trusts, and public welfare trusts [1] - The principle of "seller responsibility, buyer self-reliance; seller negligence, liability compensation" is established, breaking the rigid payment structure [1] Group 2: Governance and Internal Management - The measures aim to integrate party building with corporate governance, enhance shareholder behavior and related transaction management, and establish a scientific internal assessment and incentive mechanism [1] - There is a focus on maximizing the legitimate interests of beneficiaries and strengthening trust culture [1] Group 3: Risk Management and Regulatory Requirements - Trust companies are urged to enhance comprehensive risk management, focusing on compliance management and operational risks, with clear requirements for the entire trust business process [1] - The measures increase the minimum registered capital for trust companies, strengthen capital and provision management, and enhance behavioral and penetrative supervision to improve risk disposal and market exit mechanisms [1]