SINGAPORE, Oct 11 (Reuters) - China’s insurance industry regulator has banned Pearl River Life Insurance from borrowing money from its related companies in the next six months, while the company improves its internal controls, the regulator said on Wednesday.
The China Insurance Regulatory Commission conducted a spot review of Pearl River Life Insurance Co Ltd from Feb. 23 to April 14 and found that the insurer needed to strengthen its internal controls, it said on its website (www.circ.gov.cn).
As a result, the regulator issued a letter to Pearl River Life Insurance preventing it from borrowing or obtaining financial assistance from companies that are directly or indirectly related to the Guangzhou-based insurer.
The ban will last for six months starting on Oct 11, the regulator said. (Reporting by Lee Chyen Yee in Singapore; Editing by Greg Mahlich)