Core Viewpoint - The Financial Regulatory Administration has amended certain regulations to align with the new Company Law, particularly regarding the establishment of supervisory boards and the management of related party transactions in financial institutions [1][3]. Group 1: Regulatory Changes - The new Company Law, effective from July 1, 2024, introduces new requirements for the establishment of supervisory boards and the management of related party transactions involving directors, supervisors, and senior management [3]. - The amendments include provisions allowing financial institutions to replace supervisory boards with audit committees composed of directors, thereby optimizing corporate governance structures [4][6]. Group 2: Related Party Transactions - The revised regulations enhance the management of related party transactions, requiring that all such transactions involving directors, supervisors, and senior management be submitted for approval by the board of directors or shareholders [8]. - For daily financial products or services that do not meet the threshold for significant related party transactions, the approval process can be simplified, allowing for a unified resolution by the board or shareholders [8][9]. Group 3: Implementation and Practicality - The Financial Regulatory Administration emphasizes the need for financial institutions to adapt their internal systems and processes to comply with the new regulations, ensuring effective management of related party transactions and risk prevention [1][6]. - The amendments aim to improve the operational feasibility of the related party transaction management requirements, making it easier for institutions to comply while maintaining oversight [7][8].

Core Viewpoint - The Financial Regulatory Administration has issued a decision to amend certain regulations to align with the new Company Law, which will take effect on July 1, 2024, focusing on the management of supervisory boards and related party transactions in financial institutions [2][4]. Group 1: Regulatory Changes - The amendments include provisions allowing financial institutions to establish an audit committee composed of directors to exercise the functions of a supervisory board, thereby eliminating the need for a supervisory board [3][4]. - The new regulations require that related party transactions involving directors, supervisors, and senior management must be approved by the board of directors or the shareholders' meeting, enhancing the management of such transactions [5][6]. Group 2: Specific Provisions - The amendments to the "Banking and Insurance Institutions Related Party Transaction Management Measures" specify that transactions not reaching the threshold for significant related party transactions can be approved through a unified resolution by the board or shareholders, simplifying the approval process [5][6]. - The decision clarifies that transactions involving daily financial products or services, such as general deposits and insurance purchases, can be resolved collectively by the board or shareholders if they do not meet the significant transaction criteria [6][7]. Group 3: Implementation and Compliance - Financial institutions are encouraged to revise internal systems, optimize business processes, and upgrade systems to comply with the new requirements, thereby strengthening related party transaction management and preventing risks of interest transfer [1][5]. - Institutions have the flexibility to choose whether to retain a supervisory board or delegate its responsibilities to the audit committee, allowing for optimization of corporate governance structures [4][5].