Latest CBIRC Guidance on Performance-based Compensation Malus and Clawback Mechanisms

On 5 February 2021, the China Banking and Insurance Regulatory Commission (the “CBIRC”) released the Guiding Opinions on Establishing and Improving Performance-based Compensation Malus and Clawback Mechanisms among Banks and Insurance Institutions (《关于建立完善银行保险机构绩效追索扣回机制的指导意见》, the “Guiding Opinions”). The Guiding Opinions give specific guidance to banks and insurance institutions on the details of a performance-based compensation malus and clawback mechanism, including both repayment and cessation of performance-based compensation payments.