Beijing Finance Bureau Demands 89 Documents from P2P Platforms, 1 False Equals Shutdown

P2P platforms will go through a thorough investigation in Beijing and if 1 piece of documentary evidence is false or lie by omission, the platform will lose its license to operate.

21st Century: 北京金融局要求P2P再交89项材料 内容不真实即“一票否决”

The list of materials in the supplementary notice shows that the information submitted by the online lending institution needs to include the company's basic information, the company's system documents and relevant supporting materials, the contract text and relevant supporting materials, financial information and related data statistics, depository banks, information disclosure, There are 89 items in 9 categories, such as information security, description documents, and other materials.

The 21st Century Business Herald noted that some materials are very detailed. For example, shareholders, actual controllers, Dong Jiangao and their close relatives who hold more than 5% of the shares of online lending institutions need statistics and provide ID numbers. Mobile phone number and other information. Among the employee statistics, even the interns are required to report.

A person close to the supervision said that the "108" issued in the previous notice is a list of P2P online lenders' compliance inspection questions, which are included in the self-inspection report and should be submitted before September 30, no later than no later than October 15, 2018. The list of 89 documents in the Supplemental Notice is used as a supplementary document or evidence for Article 108 and must be submitted by October 15.

If the material is not true, it will be "one vote veto"

On August 24 this year, the Beijing Municipal Financial Bureau issued the "Notice on Launching the Self-examination of P2P Network Lending Institutions Registered in Beijing" to launch a new round of self-examination of P2P. The notice requires that the P2P registered in Beijing will be notified by the Beijing Mutual Rehabilitation Office of the “Resolution Notice for the Facilitation of Internet Loan Information Intermediary Agency”, which was established before August 24, 2016 and engaged in online lending business, still in normal operation. The institutions need to carry out self-examination, and submit self-examination reports, authenticity commitments, and benign exit plans after rectification failures to the rectification office.

On September 7, the Beijing Municipal Financial Bureau again requested the online lending institutions to submit 89 self-discipline inspection and administrative verification materials before October 15, 2018, in accordance with the above-mentioned Notice.

A person familiar with the matter told the 21st Century Business Herald that there were more than 400 P2P institutions that had been inspected and issued a rectification notice by the Beijing Financial Bureau. They were all connected to the “Golden Management” system on a monthly basis. Report the operation and the overall improvement exhibition.

According to the above-mentioned person close to the supervision, the 89 materials required to be submitted are the focus of the self-discipline inspection of the Mujin Association and the administrative inspection of the Financial Bureau. The administrative inspection pays special attention to the authenticity of the materials. If the content is found to be untrue, deliberately mislead, omissions, fraud, etc., the "one-vote veto system" is implemented.

The story goes on to say that regulatory compliance will be easier for smaller platforms with smaller volume and limited scope of operations.