The Legal Problem Of Financial Holding Company Supervision In Separate Supervision System

With the speed-up of financial globalization and the increasing animation of financial innovation, the global financial risks are also gradually promoting. Financial holding company is a new mode of organization innovation to achieve a mixed operation under our divided operation system. Fully employing the advantages of scale economy to classify, integrate, plan and deploy the internal resources, the financial holding companies have saved the transaction costs, achieved the optimal allocation of resource utilization and enhanced the competitiveness of the financial institutions, thus have brought huge profits for the enterprises. However, a series of specific risks go with the development of financial holding company,due to its relative complex corporate structure, business activities structure and management structure. Those risks cover benefit conflict risks; capital security risks; the high ratio of financial leverage and the difficulty to gauge the capital adequacy of financial conglomerate; internal affiliated transaction risk; opaque structural risk; information disclosure risk; monopoly risk and so on.At present, China's financial industry is divided into separate operation and the separation of the supervision system. Financial holding company is the organization form of multi-operation business,and it is business involved at least two different industries of banking, securities, insurance and other financial industries. Therefore, the development of financial holding company has brought huge challenges to our existing separation operation. Since the legal status of the financial holding company is not clear in Chinese law, comprehensively evaluating the risk of the financial holding companies is unavailable. Regulatory authorities have not yet set up a corresponding system to supervision, so there is a supervision vacuum and supervision overlap, which makes it difficult to implement effective regulation strategy. Therefore, in order to implement effective regulation under separation supervision system. We should accelerate the enactment of"Financial Holding Company Law",bettering supervision system,and make clear the supervision content. Second,strictly controlling the supervision of financial holding company in market. In internal control ,we need to improve the management structure strengthen internal control measures to establish, building a "firewall" system. In addition, it is essential to strengthen international cooperation of the supervision.