The Shenzhen Municipal Financial Regulatory Bureau established an administrative punishment committee Wednesday in a bid to strengthen financial regulation, the Shenzhen Economic Daily reported Thursday.
The committee will hear major and complex cases on limiting the qualifications of senior executives, revoking licenses, issuing large fines and more and make case-handling decisions on particularly serious and complex cases through collective discussion.
In recent years, the rapid development of the local financial industry and the continuous enrichment of financial services have played a positive role in serving the real economy and promoting local development.
According to the bureau, as of the end of September, the financial balance of the city’s small loan companies, financing guarantee companies, pawn brokers, regional equity markets, financial leasing companies and commercial factoring companies stood at 331.76 billion yuan (US$47.12 billion), accounting for nearly 30 percent of the loan balance of the city’s small- and medium-sized enterprises.
However, due to lack of standardized management, the risks of some emerging financial industries are being gradually exposed, necessitating the improvement of the local financial supervision system and law enforcement mechanism.
By dividing the powers of investigation and evidence collection, examination, and decision-making in administrative penalty cases, the committee aims to realize coordination and restriction between the investigation department and the trial department, so as to further guarantee the fairness and objectivity of case handling, according to the Daily report.
After the establishment of the committee, the municipal financial regulatory bureau will intensify the investigation and punishment of illegal fundraising, financial fraud and other practices that damage the legitimate rights and interests of investors and consumers.
It will also take corresponding disciplinary measures against the violations of enterprises and strengthen communication and coordination with relevant departments to promote information sharing across departments and industries.