January 20, 2021 — 09:07 Total 0 Since the IPO of Ant Group was suspended and Ant’s controller Jack Ma disappeared from public view for more than two months, how the Ant Group will restructure itself to meet tightened new regulatory requirements remains a mystery. The regulatory authorities put forward five-point restructuring requirements for Ant Group: First, return to the original intention of payment services and improve transaction transparency, and strictly prohibit unfair competition; Second, operate personal credit investigation services legally and in compliance with laws and regulations, and protect personal data privacy; Third, legally establish a financial holding company to strictly implement regulatory requirements to ensure sufficient capital and compliance with related transactions; Fourth is to improve corporate governance, strictly rectify financial activities such as illegal credit, insurance, and wealth management in accordance with prudential regulatory requirements; Fifth, to conduct securities and fund business in compliance with laws and regulations, strengthen the governance of securities institutions, and carry out asset securitization business in compliance. According to media reports, Ant Group is currently formulating a plan to establish a financial holding company in accordance with the “Trial Measures for the Supervision and Management of Financial Holding Companies”(hereinafter referred to as “Financial Control Measures”) officially implemented on November 1 by Chinese regulators. […] The market speculates that Ant Group may integrate financial-related businesses such as personal credit, fund sales, insurance, and payment into financial holding companies and accept the supervision of financial holding companies. […] However, according to the types of financial institutions recognized by the central bank, it is still controversial whether or not all of the financial business of Ant Group will be included in the financial holding company.
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