Client-Specific Asset Custody Business for Securities Companies
I. Product Overview Client-specific asset custody service for securities companies means that the custodian bank, under the entrustment of a single customer or securities company, provides safe custody service for customer’s entrusted assets, supervises the investment behaviour in connection with the entrusted assets of securities company, and renders financial services such as accounting and asset valuation.
II. Target Customers Clients and securities companies.
III. Scope of Services i. ICBC supports two business models, i.e. settlement for custodian and settlement for securities company, and provides the following basic custody services: 1. Asset custody: set separate custody accounts for clients, to ensure the safety, independence and integrity of entrusted assets. 2. Clearing service: complete the clearing and settlement of securities according to the transfer instructions of managers. 3. Transaction supervision: supervise the investment and operation of entrusted assets according to relevant laws, regulations and asset management contracts. 4. Accounting: keep complete and standardized accounting records for the assets under custody, prepare accounting statements on a regular basis, and check accounts with managers periodically, to ensure standardized and accurate accounting records. 5. Asset valuation valuate the assets under custody on a periodic basis, and check valuation results with managers, so that clients and managers can timely and accurately understand the volatile value of entrusted assets. 6. Information disclosure: submit relevant statements and reports on a regular basis, to objectively and impartially disclose the operation of assets and guarantee transparent operation. ii. Value-added services 1. Performance evaluation: provide clients with comprehensive performance evaluation of managers, whole market manager analysis and manager style analysis; provide comprehensive analysis including market analysis for client-specific asset management plans, calculation of return on investment, relative performance analysis, risk measurement, performance analysis, performance attribution analysis and industry ranking; and provide various performance evaluation services including monitoring of manager risks and public opinions. 2. Customized reports: provide various customized reports on client-specific asset management services as requested by clients and managers. 3. Information rendering: Provide newsletters and related information by virtue of abundant information resources of ICBC, including laws and regulations, policy trends, industry trends, market analysis, and market information.
IV. Business Process i. Sign an asset management contract and submit the contract for filing. Investor, manager and custodian sign a tripartite asset management contact; and securities company submits the contract to local securities regulatory bureau for filing. ii. Open an account. Custodian opens a fund custody account and securities company opens a securities account in accordance with relevant laws and regulations. iii. Hand over entrusted assets. Customer hands over entrusted assets to custodian according to the signed asset management contract, and manager and custodian commonly determine the net market value of entrusted assets handed over by the customer. iv. Custody operation. The Bank keeps customer's entrusted loans in a safe place, handles fund receipt and payment, and supervises the investment made by securities company.
V. Product Advantages i. Rich experience in custody services. ICBC, as the first custodian bank in China, has the most complete custody qualifications and service products and the most partners. Besides, it is also the largest domestic custodian bank receiving the most awards. The Bank is experienced in terms of client-specific asset custody service for securities companies, thus being highly regarded by the market and customers. ii. Sound service network and abundant customer resources. ICBC has a large number of branches and sub-branches throughout the country, with multiple functions, reasonable layout and abundant personal and corporate customer resources. iii. Ominibearing transaction supervision. ICBC has developed a powerful transaction supervision system, for its professionals and professional systems to conduct ominibearing supervision on the investment of customers’ entrusted assets, thus protecting the safety of such assets to the maximum extent. VI. Contact Information If you would like to apply for any service, please contact local branch or sub-branch of ICBC or the Entrusted Asset Division I of Asset Custody Department under the Head Office of ICBC: Contact person(s): Zhao Zhiguo Tel: (8610)66105771 Fax: (8610)66105769 E-MAIL: email@example.com