Detailed Rules for the Implementation of the Regulations of the People’s Republic of China on the Administration of Foreign-invested Banks (6)
Source: CBRC View: 367 Date: 2011-05-16

Chapter IV Administration on Post-holding Qualifications

Article 63 The term "senior managerial personnel" as mentioned in the Regulations and in the present Detailed Rules refers to the managerial personnel of a foreign-invested bank who shall be subject to the post-holding qualification examination and approval by the CBRC or by the local banking regulatory bureau.

Article 64 Anyone, who assume the position of a director, senior manager or chief representative of a foreign-invested bank, shall be a natural person with complete civil capacity and shall satisfy the following basic conditions:
(1) Being familiar with and complying with the Chinese laws, administrative regulations, and rules;
(2) Having good professional ethics, moral integrity, behaviors and reputation, having good records of complying with the law and abiding by the regulation, and having no bad record;
(3) Having a university educational background or higher, and having the professional knowledge, work experience and organization and management abilities which can satisfy the demands of the position; or if he fails to have a university educational background, 6 or more years of experience of financial work or related economic work experience (among which 4 or more years shall be financial work experience) shall be added accordingly; and
(4) Having the independence which is essential to assume the relevant duties.

Article 65 Before the CBRC or the local banking regulatory bureau examines and approves his qualifications to assume the position, no director, senior manager or chief representative of any foreign-invested bank may fulfill his duties.

Article 66 Anyone, under any of the following circumstances, shall not assume the position of a director, senior manager or chief representative of a foreign-invested bank:
(1) Having any criminal record of intentional or gravely wrongful act;
(2) Assuming or having ever assumed the position of a director or senior manager of any institution which is taken over, revoked, merged, declared bankrupt, or of which the business license is withdrawn because of its illegal business operations, unless he can prove that he has no fault;
(3) Instigating the institution, in which he takes up a position, to prevent or resist the supervision and inspection or investigation and punishment of a case implemented by the CBRC or its dispatched institution, or participating in doing so;
(4) Causing any severe loss or bad results to the institution, in which he takes up a position, owing to violating the professional ethics or moral integrity, or towing to his serious negligence of duties;
(5) Being unable to repay any relatively large sum of debt borrowed by himself or by his spouse;
(6) Being forbidden by any law, administrative regulation or rule of any government department to assume the director, senior manager or chief representative of any financial institution; or
(7) Any other circumstance as determined by the CBRC.

Article 67 The CBRC shall take charge of checking and approving the qualifications of a person to take up any of the following positions or disqualify a person from taking up any of the following positions in a foreign-invested bank:
(1) The chairman of the board of directors, president (chief executive officer or general manager) of a solely foreign-invested bank or Chinese-foreign equity joint bank, or president of any branch of a solely foreign-invested bank or branch of a Chinese-foreign equity joint bank;
(2) The president (general manager) of a branch of a foreign bank; and
(3) The chief representative of a representative office of a foreign bank.

Article 68 The CBRC shall authorize the local banking regulatory bureau of the place where the foreign-invested bank is located to examine and approve the post-holding qualifications of the new candidate when the change of the president of a branch of a solely foreign-invested bank, president of a Chinese-foreign equity joint bank, president (general manager) of a branch of a foreign bank, or chief representative of a foreign bank happens.

Article 69 A local banking regulatory bureau shall take charge of examining and approving the qualifications of a person to assume any of the following positions, or disqualifying a person from assuming any of the following positions:
(1) The directors, deputy chairman of the board of directors, secretary of the board of directors, deputy president (deputy general manager), assistant to the president, chief operating officer, chief risk controlling officer, chief finance officer (chief financial officer or financial person-in-charge), chief technical officer, person-in-charge of internal audit and person-in-charge of regulation compliance;
(2) The deputy president and regulation-compliance person-in-charge of any branch of a solely foreign-invested bank, the deputy president (deputy general manager) and person-in-charge of regulation compliance of any branch of a foreign bank;
(3) The president of a branch; and
(4) Other positions having the business management decision-making power or playing an important part in the control of risks.

Article 70 A person who plans to assume the position of a director, senior manager or chief representative of a foreign-invested bank shall meet the following conditions:
(1) He shall have 8 or more years of financial work experience or 12 or more years of relevant economic work experience (among which 5 or more years shall be financial work experience), if he plans to assume the position of the chairman of a solely foreign-invested bank or of a Chinese-foreign equity joint bank;
(2) , He shall have 5 or more years of financial work experience or 10 years of relevant economic work experience (among which 3 or more years shall be financial work experience), if he plans to assume the position of the deputy chairman of the board of directors of a solely foreign-invested bank or Chinese-foreign equity joint bank;
(3) He shall have 8 or more years of financial work experience or 12 years of relevant economic work experience (among which 4 or more years shall be financial work experience), if he plans to assume the position of the president (chief executive officer or general manager) of a solely foreign-invested bank or of a Chinese-foreign equity joint bank;
(4) He shall have five or more years of financial work experience or 10 or more years of relevant economic work experience (among which 3 or more years shall be financial work experience), if he plans to assume the position of the secretary of the board of directors, deputy president (deputy general manager), assistant of the president, chief operating officer, chief risk controlling officer, chief finance officer (chief financial officer or financial person-in-charge), chief technical officer, or president (general manager) of any branch of a solely foreign-invested bank or branch of a Chinese-foreign equity joint bank or branch of a foreign bank;
(5) He shall have 5 or more years of economic, financial, law or accounting work experience, shall be able to judge the business operation, management and risk status, and can understand the corporate governance structure of the bank, articles of association, duties of the board of directors as well as the rights and obligations of the directors with the help of financial statements and statistical statements, if he plans to assume the position of a director of a solely foreign-invested bank or of a Chinese-foreign equity joint bank;
(6) He shall have 4 or more years of financial work experience or 6 or more years of relevant economic work experience (among which 2 or more years shall be financial work experience), if he plans to assume the position of a deputy president (deputy general manager) of any branch of a solely foreign-invested bank, branch of a Chinese-foreign equity joint bank or branch of a foreign bank;
(7) He shall have 4 or more years of financial work experience if he plans to assume the person-in-charge of internal audit or person-in-charge of regulation compliance of a solely foreign-invested bank or Chinese-foreign equity joint bank;
(8) He shall have 3 or more years of financial work experience if he plans to assume the person-in-charge of regulation compliance of any branch of a solely foreign-invested bank, branch of Chinese-foreign equity joint bank or branch of a foreign bank; or
(9) He shall have 3 or more years of financial work experience or 6 or more years of relevant economic work experience (among which 1 or more years shall be financial work experience), if he plans to assume the position of the chief representative of any representative office of a foreign bank.

Article 71 A foreign-invested bank shall submit the following application materials (in duplicate) to the local banking regulatory bureau of the place where the institution, in which the candidate is to take up the said position, is located, when it applies for examining and approving the qualifications of a candidate director, senior manager or chief representative, and a copy shall be simultaneously sent to the institution dispatched by the CBRC to the place where the institution, in which the candidate is to take up the said position, is located:
(1) An application signed by the person authorized by the applicant; it shall be addressed to the Chairman of the CBRC if it is subject to the examination and approval of the CBRC; it shall be addressed to the director of said banking regulatory bureau if it is subject to a banking regulatory bureau; the application shall include the title, duties, powers, position of this title in the organizational structure of this institution;
(2) An authorization to the candidate signed by the person authorized by the applicant, and an authorization to the person who signs the first-mentioned authorization;
(3) copies of the identity card and the academic credentials of the candidate;
(4) The resume and a detailed description of his plan on fulfilling the duties in the future;
(5) A formal announcement of having no bad record and a letter of commitment to comply with the law or fulfill his duties after he assumes the position, which are signed by the candidate;
(6) The applicant shall submit the resolution of the corresponding meeting if the articles of association of the solely foreign-invested bank or Chinese-foreign equity joint bank requests a general meeting of shareholders or meeting of the board of directors; and
(7) Other materials as requested by the CBRC.

Article 72 The resumes, and copies of the identity card and the academic credentials of the candidates as mentioned in the Regulations and in the present Detailed Rules shall be signed by the authorized person.

Article 73 Before it examines and approves its qualifications the CBRC or the local banking regulatory bureau may, where a candidate is a former director, senior manager or chief representative of a banking financial institution within China, consult the opinions of the banking regulatory bureau of the place where the institution in which the candidate took up a position is located.
The institution in which the candidate assumes a position shall offer feedback opinions in a timely manner.

Article 74 The CBRC and the local banking regulatory bureau may have an interview with the candidate prior to the appointment after a foreign-invested bank submits the post-holding qualification application materials.

Article 75 The president (chief executive officer or general manager) of any business institution of a foreign-invested bank, chief executive of any representative office of a foreign bank shall submit a written report to the local institution dispatched by the CBRC and designate a special person to fulfill his duties if he needs to continuously leave his office for 1 month or longer He shall be replaced if he leaves his post for consecutively 3 months or longer without any special reason.

Article 76 If a director, senior manager or chief representative is under any of the following circumstances, the CBRC and its dispatched institution may, in view of the seriousness of the case, disqualify him from taking up such a position for a certain time period or for life;
(1) Being investigated for criminal liabilities under the law;
(2) Rejecting, disturbing, frustrating or seriously impairing the supervision and inspection carried out by the CBRC and its dispatched institution under the law;
(3) The imperfect internal management and control system or weak supervision results in serious property losses to the institution in which he assumes a position or causes any severe financial criminal case;
(4) The institution, in which he assumes a position, is taken over, merged or declared bankrupt due to business operations in serious violation of any law or regulation, imperfect internal system or long-term poor management of business operations;
(5) Serious losses to the institution, in which he takes up a position, wing to long-term poor management of business operations;
(6) As regards a person who has been appointed to a senior managerial post of a foreign-invested financial institution, if the CBRC finds that he has ever breached any law or regulation before taking up the position, or finds any other circumstance that it is unsuitable for him to take the post; and
(7) Any other circumstance as determined by the CBRC.

Article 77 The local banking regulatory bureau shall submit to the CBRC the application materials and the examination opinions within 20 days after it receives a complete set of application materials, if the qualifications of a candidate shall be subject to the examination and approval of the CBRC. The CBRC shall make a decision of approval or disapproval and present a written notice to the applicant within 30 days after it receives a complete set of the application materials. It shall make an explanation if it makes a decision of disapproval.
The local banking regulatory bureau shall make a decision of approval or disapproval and present a written notice to the applicant within 30 days after it receives a complete set of the application materials, if the qualifications of a candidate shall be subject to the examination and approval of the local banking regulatory bureau. It shall make an explanation if it makes a decision of disapproval.
 

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