Custody Services for Collective Asset Management Scheme (Securities Company)
I. Product Overview Custody service for collective asset management scheme (securities company) refers to the financial service that ICBC performs the obligations such as safe custody of collective scheme assets, asset valuation, fund receipt and payment, accounting, supervision on investments made by securities companies according to relevant regulations of regulatory authorities including CSRC and the provisions in the collective asset management contracts.
II. Target Customers Securities companies and asset management subsidiaries which establish collective asset management schemes.
III. Scope of Services i. Basic services 1. Asset custody: provide fund custody service for collective asset management scheme (securities company), and ensure the safety, independence and integrity of scheme assets. 2. Asset valuation valuate the market value of scheme assets under custody on a periodic basis, and check valuation results with managers, so that the managers can obtain the information about volatile value of scheme assets on a timely and accurate basis. 3. Clearing service: complete the clearing and settlement of securities involved in the investment activities relating to collective asset management schemes according to the transfer instructions of scheme managers. 4. Accounting: keep complete and standardized accounting records for the scheme assets under custody, prepare accounting statements on a regular basis, and check accounts with managers periodically, to ensure standardized and accurate accounting records. 5. Transaction supervision: supervise the investment and operation of funds in connection with collective asset management schemes according to related contracts and custody agreements. 6. Information disclosure: Submit relevant statements and reports to scheme managers on a regular basis, to objectively and impartially disclose the operation of schemes and guarantee transparent operation. ii. Value-added services 1. Customized reports: provide various customized reports on collective investment schemes as requested by scheme managers. 2. 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. Advantages 1. Risk business experience, and high recognition from customers. Since ICBC formally launched custody service for collective asset management scheme in 2005, it has managed more than 350 collective asset management schemes (for securities companies), hence accumulating market experience and receiving recognition from market and customers. 2. Sound service network, with efficient settlement means. ICBC owns a large number of branches and sub-branches throughout the country, with multiple functions and reasonable layout. By virtue of its advantages in outlets, the Bank has strong capabilities in promoting wealth management products as an agent. 3. Leading technological level, with a powerful custody system. The integrated processing system for asset custody service independently developed by ICBC received the “scientific and technological progress prize” awarded by the People's Bank of China respectively in 2004 and 2005. The completion of automatic accounting and valuation system for collective asset management schemes has realized straight-through processing (STP) of custody services including accounting, asset valuation, clearing, investment monitoring and account management.
V. Business Guide 1. Sign an asset management contract and make payment for subscription. During the period of promoting custody service for collective asset management scheme (securities company), investor, manager and custodian sign a tripartite asset management contract, and payment is made for the subscription for collective asset management scheme. Upon the confirmation of manager, participation succeeds. 2. Open an account. Custodian opens a custody account for collective asset management scheme according to relevant laws and regulations. Establish the fund after capital verification. If the funds raised reach no less than RMB30 million and the number of customers is no less than 2 persons after the expiration of collective asset management scheme promotion period, the scheme can be announced for establishment after capital verification. 3. Hand over collective scheme assets. Manager hands over the collective scheme assets to custodian pursuant to the amount of verified capital. 4. Custody operation. Services including asset custody, accounting, asset valuation, clearing and delivery will be provided according to asset management contract and custody agreement, and investment and operation of collective asset management scheme will be supervised, with issue of custody reports on a regular basis.
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