By M. Machua Millett, Associate, Edwards Angell Palmer and Dodge LLP
China is considering reviving its plan to set up a super regulator in order to make the government's oversight of the financial sector more efficient and expedient and improve the lack of integration and co-ordination between existing regulators. This is especially important as the financial sector becomes increasingly integrated (for example it is now possible for banks to invest in insurance companies and vice versa).The new "super regulatory agency" would sit above the agencies currently in charge of the country's insurance (the China Insurance Regulatory Commission), banking (the China Banking Regulatory Commission) and securities (the China Securities Regulatory Commission) industries. The new agency, which may be led by a vice-premier, would coordinate financial supervision and monetary policymaking alongside the central bank, the People's Bank of China.The Chinese government previously considered establishing the super regulator at its last five-yearly national financial work conference in 2007 but did not progress beyond the planning stage. However, the plan for the super regulator could be announced this year, amid reports that the next financial work conference, which is not due to be held until 2012, could be moved to the second half of this year. At the work conference the Chinese government intends to discuss the establishment of the super regulator as well as other strategic issues.
© Copyright 2010 by Edwards Angell Palmer and Dodge LLP. All rights reserved. Reprinted with permission. This blog originally appeared on the InsureReinsure Blog. The InsureReinsure Blog is one of the Insurance Law Center's Top 50 Insurance Blogs for 2009. See the Top 50 Insurance Blogs list.