New Year, Same Story: China Crackdown on BigTech Finance

More of the same is coming for BigTech companies trying to push into the financial sector.

January 2021: PBOC Vows to Step Up ‘Prudential Oversight’ of Online Platforms

December 2021: 重磅！央行开始动手了，哪些主播被禁止卖金融产品？

Improve the Internet financial supervision system

The central bank and other relevant departments pointed out the three major necessity for the formulation of the "Measures" in the drafting notes.

The first is to implement the Party Central Committee's decision and deployment on anti-monopoly and preventing the disorderly expansion of capital.

With the vigorous development of the digital economy, social production and lifestyles are changing from production-oriented to demand-oriented, and customers and data resources have become important means for implementing monopoly in the era of digital economy.

Some Internet platform companies take advantage of online scenarios and reach customers to conduct financial business by participating in financial institutions or cooperating with financial institutions. There are some violations in the marketing of financial products, infringing on the rights and interests of financial consumers, and repelling and restricting fair competition. There is an urgent need to formulate policies and systems to regulate the online marketing of financial products.

The second is to protect the safety of people’s property.

Judging from the practice of Internet financial supervision in recent years, problems such as selling illegal financial products to financial consumers or inducing financial consumers to buy financial products that do not match their financial status and risk-bearing capacity are more prominent, which infringes on the people’s property safety .

Preventing and disposing of related risks are related to the vital interests of financial consumers. We must strengthen the supervision of financial institutions and Internet platform companies from the source link of financial product marketing.

The third is to improve the Internet financial supervision system.

In recent years, financial management departments have continuously explored and strengthened the supervision of online marketing of financial products. Relevant behavioral norms and management measures are scattered in the regulatory systems of Internet loans, Internet insurance, Internet fund sales and other fields. At present, there is still a lack of relatively systematic and unified supervision. Management System.

In addition, the Internet platform cooperates with financial institutions to carry out financial services, mainly to provide financial product marketing and customers' personal credit information services. The newly issued "Credit Investigation Business Management Measures" has included personal credit information services in the scope of supervision, and further measures are needed. Strengthen the supervision of online marketing and complete the system puzzle.

The reporter noted that the chaos of Internet marketing has already aroused the attention of regulatory authorities. In the past two years, the Beijing Banking and Insurance Regulatory Bureau, Chongqing Banking and Insurance Regulatory Bureau, Qinghai Banking and Insurance Regulatory Bureau and other local regulatory bureaus have issued consumer risk warnings on related chaos in the fields of Internet insurance insurance, insurance live marketing, and financial consumption on Internet sales platforms.