On July 10th, the National Financial Regulatory Administration released the "Provisions on the Management of the List of Subjects with Severe Dishonesty (For Trial Implementation)", which will take effect from October 1st, 2026.

The Provisions consist of thirty-one articles and primarily encompass the following key aspects. Firstly, they carefully define the scope for inclusion on the list. Entities such as financial institutions and their employees who have been subject to administrative penalties or other measures by the National Financial Regulatory Administration or its local offices, and whose violations are deemed particularly egregious and serious in nature, will be included in the list of subjects with severe dishonesty.

Secondly, the rules clarify the management measures applicable to these severely dishonest entities. Based on relevant laws, regulations, and policy documents, the Provisions specify the management actions that the National Financial Regulatory Administration and its local offices may take against entities placed on the list.

Thirdly, the procedures for list management are strictly standardized. The specific processes for adding entities to and removing them from the list are outlined, including provisions for prior notification and the right to statement and defense, thereby fully safeguarding the relevant parties' rights to information and defense.

Fourthly, a credit restoration mechanism is established. The Provisions encourage entities on the severe dishonesty list to rectify their dishonest conduct and mitigate any negative impacts. Conditions for early removal from the list and verification timelines are clearly defined.

The issuance of these Provisions represents a significant step by the National Financial Regulatory Administration to advance the social credit system. It aims to strengthen the crackdown on illegal and non-compliant activities, enhance the effectiveness of financial supervision, guide market participants to strengthen their awareness of honest operations, and promote the high-quality development of financial markets.