China gives 'rectification' plan to fintech the Ant Group
Chinese fintech, the Ant Group, was given a plan to "rectify" its regulatory violations by The People's Bank of China, according to report in TechCrunch.
The banking authority gave a five-point compliance agenda which included: having the group return to its payments roots and bring transparency to transactions; obtain necessary licenses for credit businesses and protect user privacy data; establish a financial holding company with sufficient capital; revamp key businesses (credit, insurance, wealth management) in accordance to the law and increase compliance for its securities business.
The Ant Group, which began as a payments processor for Alibaba's online marketplaces, could have had a record-setting initial public offering but was stopped 48-hours prior to going public by regulators citing compliance issues.
The fintech said it will be working on meeting all the regulatory requirements which could take months to comply.
Concurrently, Jack Ma's e-commerce giant Alibaba is also under investigation by regulators for alleged monopolist behavior.