CIRC takes measures to stem illegal fund raising in the insurance sector

China's insurance watchdog yesterday issued the provisional measures on the pre-warning, investigation and punishment of suspected illegal fund-raising activities in the insurance sector, requiring all related parties including local regulatory authorities, insurance companies and insurance intermediaries to work together in setting up a pre-warning and investigation mechanism against suspected illegal fund-raising activities.

The measures stipulate insurers and insurance intermediary agencies should reinforce business management and guidance over their branches, stay away from illegal fund-raising dealings via their business channels, avoid providing insurance or other convenience to such activities to prevent the risk of illegal fund raising from spreading to the insurance sector.