Regulatory Alerts2007-03-30
CBFA Prudential Expectations on Financial Institutions' Sound Governance
The Banking, Finance and Insurance Commission (CBFA) issued Circular PPB-2007-6-CPB-CPA to consolidate existing supervisory law, recommendations, and best practices concerning financial institutions' sound governance. This thematic circular outlines ten general principles applicable to a wide range of financial institutions under CBFA supervision, including credit institutions, insurance companies, and investment firms, emphasizing a transparent governance structure appropriate to their nature, size, complexity, and risk profile. All affected financial institutions are required to assess their management structure against these principles and submit a governance memorandum to the CBFA by March 31, 2008, for subsequent assessment and approval.