On August 5, the National Financial Regulatory Administration (NFRA) released its response to a proposal from the Fourth Session of the 14th National Committee of the Chinese People's Political Consultative Conference (No. 03374, Category 216 on Fiscal, Taxation, and Financial Affairs).
The response noted that in July 2021, the State Council issued the "Opinions on Further Regulating the Financial Audit Order and Promoting the Healthy Development of Accounting Firms" (Guo Ban Fa [2021] No. 30), with Article 12 calling for the revision of the "Interim Measures for Professional Liability Insurance for Accounting Firms."
To implement this State Council directive, the NFRA has been actively collaborating with the Ministry of Finance in recent years, conducting research on revising the "Interim Measures for Professional Liability Insurance for Accounting Firms." This work has included organizing thematic studies within the insurance industry on insurance liability, industry standard clauses, and centralized insurance purchasing, as well as reviewing and summarizing domestic and international experiences and practices regarding professional liability insurance for accounting firms.
Building on this preliminary work, the NFRA and the Ministry of Finance jointly drafted the "Implementation Measures for Professional Liability Insurance for Accounting Firms" (referred to as the "Implementation Measures") and held multiple rounds of consultations to gather feedback from all parties.
Currently, the NFRA and the Ministry of Finance have reached a consensus on the content of the revised "Implementation Measures," which are expected to be jointly issued soon.
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