Research On The Differentiated Regulation Of Comprehensive Financial Operation

Recently, with the development of economic globalization and integration, the financial development of all countries has gradually integrated. In our country, the financial development is catching up with the tide of history, and achieving integrated management gradually. However, legislation has lagged behind financial practices. Related laws and regulations have not been established. The regulation of comprehensive financial operation is still at an exploratory stage. Agency access lacks standardized guideline. The business behavior lacks correct guide. The idea of institutional market exit is backward, all of which result in the development in a state of disorder. There is an increasing demand for establishing a complete set of regulatory framework, including the entire process of comprehensive financial management, not just the definition of concept and mode. Therefore, based on the actual development of comprehensive financial management in our country, we need to sort out the supervision problems and explore the approaches to improve the regulation from access to exit.Apart from the preface and conclusion, this essay consists of four parts:The first part is the overview of the differential regulations of comprehensive financial operation. First of all, I'll introduce two typical modes of comprehensive financial operation, namely universal Banks and financial holding company, mainly including the history, characteristics, advantages and disadvantages of them. Then it will introduce the meaning of the differential regulation, mainly including the differential supervision between comprehensive financial operation institutions and other financial institutions, between Parent Company and Subsidiaries Company, as well as the each Subsidiaries Companies. This article focuses on the differential supervision between Parent Company and Subsidiaries Company.The second part analyzes the theoretical and practical basis of the differential regulation. First introduces the theoretical basis of differential regulation, including the inclusive regulatory philosophy, the selection of formal justice and substantive justice, and supervision theory of paying equal to both efficiency and safety. Then it will point out the economic basis of differential regulation, mainly because of the specialty of integrated financial management, as well as the differences of functions, behavior and management risk between the Parent Company and Subsidiaries Company. Finally, based on practice, the article notes the significance of the implementation of differentiated regulation, which helps to control comprehensive financial institutions, maintain the rights of financial consumers, and stabilize the order of financial market.The third part introduces the state and shortcomings of the integrated financial operation supervision. Firstly, it introduces the defects of legislation, laws and regulations lag behind comprehensive financial operation practice. Secondly, introduces the shortage in the whole supervision process, including the improper access system which lacks operational standards, personnel disqualification, and the unfairness; Conduct supervision lacks consciousness; Behavior regulation and prudential regulation are conflict. The anti-monopoly enforcement authority is not independent, unprofessional. Personnel quality couldn't keep up with the supervision. Supervision mechanism lacks specificity. Market exit mechanism and concept are backward, and the government excessive protection of comprehensive financial management institutions, and there is regulatory responsibilities offside. Market withdrawal lacks preventive concept.The fourth part introduces how to improve the differentiation supervision system of comprehensive financial operation. First of all, based on existing law to improve the relevant bodies of law. Secondly, establish a clear standard in admittance regulation of capital, personnel, organization structure, business and so on.The future direction of development should expand market access; On the behavior regulation, conduct supervision and prudential supervision should be applied to different functional departments. Avoiding a single department enforce law producing supervision goal conflict, focusing on differences regulation between the parent-subsidiary for business. The anti-monopoly execution authority of the comprehensive financial operation should be determined. The competition should be introduced to break the monopoly; On the Market exit supervision, breaking the traditional concept of "too big to fail", in view of the parent company and comprehensive financial management institutions, establish a special quasi-market regulator. As for market exit of subsidiary company, mainly rely on the parent company and industry regulators.