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Stricter Regulations on Insurance Fund Equity Investments: Industry Compliance Standards Set to Improve

April 28, 2025

Label:

Due diligence

pre-IPO DD

Pre-IPO due diligence

For asset management institutions, the future competition will no longer be about "who moves the fastest," but about "who can navigate through market cycles most steadily."

The ability to manage compliance and risk control is becoming the true core competitive advantage.

Enhancing Compliance Management and Risk Control in Investment Fields

On April 2025, the China National Financial Regulatory Administration (NFRA) issued the "Notice on Strengthening the Supervision of Insurance Fund Equity Investment Plans and Insurance Private Equity Funds," aiming to further enhance compliance management and risk control in the insurance fund investment sector.

The new regulations require insurance institutions to strengthen pre-investment compliance reviews and filing processes, establish a transparent risk identification system, and intensify information disclosure and monitoring during the post-investment phase.

As regulatory policies tighten, insurance institutions must quickly adapt to these new compliance requirements. By improving internal control systems and compliance review mechanisms, they can proactively manage investment risks, ensuring the security and stability of their asset allocation.


Compliance and Risk Control as a Competitive Advantage

The new regulations issued by the China Banking and Insurance Regulatory Commission (CBIRC) set more stringent requirements for the allocation of insurance funds into equity investments and private equity funds.

Pre-investment compliance reviews, transparent post-investment management, underlying asset transparency... These requirements may make investments seem more difficult at first glance.

However, viewed from a different perspective, these changes could be a necessary path towards a more mature, market-driven investment landscape for insurance funds.

While strict regulations may bring short-term inconvenience, they could lead to long-term security and sustainable growth.

For asset management institutions, the future competition will no longer be about "who moves the fastest," but about "who can navigate through market cycles most steadily."

The ability to manage compliance and risk control is becoming the true core competitive advantage.


Disclaimer: Certain images or references used in this article are sourced from publicly available materials. We respect intellectual property rights, and any rightful owner may contact us for content removal.(jielang.liu@aegismanage.com



Catalogue
  • Enhancing Compliance Management and Risk Control in Investment Fields
  • Compliance and Risk Control as a Competitive Advantage
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