BEIJING — China's top banking and insurance regulator on Aug 25 released measures requiring wealth management companies to tighten internal control for sustainable and sound operation in compliance with laws and regulations.

The companies must formulate comprehensive, systematic, and standardized internal control systems covering all business and management activities and conduct an overall evaluation at least once a year, according to the measures issued by the China Banking and Insurance Regulatory Commission.

They should continuously track the changes in risk monitoring indicators of each product, carry out stress tests, and take effective actions in time.

To protect investors' legitimate rights and interests, the measures require wealth management firms to optimize hierarchical authorization mechanisms for investment, implement all-round management of key personnel in important positions, and improve related transactions management and isolation of risks.

It also urged the companies to set up chief compliance executive positions and publicize information, including investment personnel, related transactions, and custody institutions.