Research On The Legal Supervision Of Related Transactions Of Financial Holding Company

China’s financial industry has been adhered to the supervision principle of‘separate operation and separate supervision’ for many years,and maintaining a steady and healthy operation.However,the disadvantages brought by this mode are also becoming more and more prominent.Financial holding company,an innovative form of enterprise,breaks the restriction of financial institutions’ separate operation,solves the problem of limited competition and unable to play a synergistic effect in the separate operation to a certain extent,and will become the basic form of mixed operation in China’s financial industry.Under the influence of the special composition mode of financial holding company,the internal related transactions are inevitable.These related transactions have advantages and disadvantages.The advantages are that these related transactions can reduce the operating cost of the enterprise,save the time cost of customers,and obtain large-scale and cooperative operating profits.The disadvantages are that frequent related transactions will cause certain financial risks,such as the risk of conflict of interest,the risk of regulatory arbitrage,but also become the aggregation channel of other financial risks.Under the influence of the complex relationship within the financial holding company,the risks caused by the related transactions will be quickly transferred within the group company,which will have a great impact on the stability of the whole group company and the external financial market.Under the influence of these risk factors,it is urgent for regulators to carry out necessary legal supervision on the related transactions of financial holding companies.Some scholars pointed out that the core of financial supervision is to control risks.To control the risks brought by the related transactions of financial holding companies,effective legal supervision should be carried out at the same time.Scientific and reasonable supervision system and complete legal provisions are indispensable.However,the existing supervision regulations and supervision system cannot effectively control the risks caused by the related transactions of financial holding companies.At present,there are many deficiencies in the existing laws and regulations on the related transactions of financial holding companies.For example,the laws and regulations governing the related transactions are not systematic and targeted enough,no perfect information disclosure system and firewall system have been established,and the responsibility penalties for the illegal subjects are relatively light,and there is no deterrent force.In the current regulatory system,there are system designs There are many problems such as unreasonable,unclear responsibilities of regulators,unclear main regulators,and low efficiency of regulatory measures.In the face of the problems exposed in reality,the solutions are as follows: first of all,starting from improving the laws and regulations governing connected transactions,strengthening the systematic and pertinence of the regulations,providing a strong legal guarantee for the risk of connected transactions,and strengthening the existing information disclosure system of connected transactions,so that regulators and market investors can timely and accurately grasp the information of connected transactions Relevant information should be provided to improve the transparency of transactions and avoid improper connected transactions damaging the rights and interests of investors and shareholders;the legal responsibility of violators should be strengthened,and the company or senior managers who damage investors and shareholders should be punished,legal authority should be established,and judicial deterrence should be strengthened;secondly,in terms of improving the regulatory system,the existing On the basis of financial regulators,we should establish a functional regulatory model,establish major regulatory departments,ensure that regulatory agencies can exchange information in a timely manner in their daily regulatory work,establish a smooth information exchange mechanism,carry out cross-border supervision on the business of financial holding companies,improve their own risk awareness,and urge these companies to establish strict internal supervision The internal control system starts from the source to strictly control the connected transactions,in order to reduce the possibility of financial risks brought by the connected transactions and ensure the sustainable and healthy development of the financial holding company.