Ant Group must fix problems, meet supervision requirements: regulators
China's financial regulators have identified major problems in Ant Group's business operations and have urged the company to make plans and set a timetable as soon as possible to fix the problems in accordance with supervision requirements.
The group's major operating problems include flaws in its corporate governance mechanism and poor legal awareness, flouting regulatory compliance requirements, foul play for regulatory arbitrage, leveraging market dominance to exclude competitors, and hurting consumers' legitimate rights and interests, which led to consumer complaints, said Pan Gongsheng, deputy head of the People's Bank of China (PBOC).
The requirements for the group to rectify its business operations were put forward during the regulatory talks carried out by the PBOC, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange on Saturday.
The Ant Group has been asked to return to its original business as a payment services provider and enhance transparency of transactions, and the group is strictly prohibited from unfair competition, Pan said when answering questions from the press.
The company should carry out individual credit reporting business that is compliant with laws and regulations, and should protect personal data privacy, said Pan.
He said Ant Group must set up a financial holdings company in accordance with laws, strictly implement supervision requirements and ensure capital sufficiency and legality of relevant businesses.
The company has also been urged to improve corporate governance and strictly rectify illegal credit loans, insurance, wealth management and other financial activities in accordance with supervision requirements, he said.
Pan said Ant Group should strengthen risk management and control, maintain business continuity and normal business operations, and ensure quality financial services for the public.
Financial regulators will keep close communications with Ant Group and listen fully to its opinions.