Custody Service for Corporate Annuity Pension Products
I. Product Overview Custody service for corporate annuity pension products means that ICBC, as entrusted by the investment managers of corporate annuity pension products, provides safe custody service for corporate annuity pension assets according to relevant laws, regulations and custody contracts as well as handles the businesses such as clearing for corporate annuity pension products, securities settlement, accounting, asset valuation and supervision on investment. The introduction of custody mechanism can effectively grantee the safety, independence and integrity of corporate annuity pension assets, raise the operational efficiency of such products and increase the return on annuity fund.
II. Target Customers Corporate annuity fund investment and management agencies which provide corporate annuity pension products.
III. Scope of Services Asset custody: set separate accounts for independent safekeeping, to ensure the safety, independence and integrity of corporate annuity pension assets. Clearing service: handle the clearing of corporate annuity pension products and settlement of securities according to relevant contracts and the instructions of the party concerned. Accounting and asset valuation: apply accounting and asset valuation to corporate annuity pension assets, and check, examine and verify the valuation results for pension products as calculated by investment managers of corporate annuity pension products. Supervision on investment: supervise the investment and operation of corporate annuity pension assets according to relevant national laws and regulations as well as custody contracts; if any problems are found, promptly notify investment managers for adjustment; if the investment managers fail to adjust, report to regulatory authorities on a timely basis. Information disclosure: as required by regulatory authorities, submit the statements or reports on custody service for corporate annuity pension products and assets on a regular basis. Safekeeping of materials: keep custody records, account books, reports and other related materials in connection with corporate annuity pension products according to national regulations. Other services: other custodian services upon request of investment managers.
IV. Advantages i. Rich experience in custody services ICBC was the first domestic custodian bank for corporate annuity fund. In December 2001, it was the first one to obtain the qualification as a custodian bank for corporate annuity accredited by the People’s Bank of China. In the following year, the Bank provided custody service for social security annuity funds in Shanghai and Shenzhen. ICBC was one of the first batch of domestic custodian banks approved by the Ministry of Human Resources and Social Security. In August 2005, the Bank obtained the qualification of custodian bank for corporate annuity fund accredited by the Ministry of Human Resources and Social Security, thus possessing the statutory conditions for annuity fund custody. ICBC was the first domestic custodian bank for single standardized market annuity fund. In June 2006, it was the first one to provide custody service for single standardized market annuity fund in China. ICBC was the largest domestic custodian bank for corporate annuity fund. Its market share in terms of corporate annuity fund custody is about 40%. ii. Powerful asset custody system ICBC is the only domestic custodian bank which independently develops an asset custody system by virtue of its own technological strength. And the system is the only one which can genuinely conduct mutual checking and mutual supervision with the investment manager accounting system. iii. Ominibearing transaction supervision ICBC was the first one in the banking industry to establish a division called Supervision and Risk Management Division under the Asset Custody Department which would specially supervise various investments. It has developed a powerful transaction supervision system, which consists of more than 400 indicators of five categories. Through the specialized system, professionals could conduct ominibearing supervision on corporate annuity fund investment, thus protecting the safety of pension assets to the maximum extent. iv. Advanced Internet banking services Customers can handle businesses such as file transfer, report query, equity information query, account details query, net value reconciliation, research report delivery, transfer order management and customer service on a self-help basis.
V. Business Guide i. Business contact: investment managers of corporate annuity pension products can contact the Head Office of ICBC; ii. Signing of agreement: a Contract on Corporate Annuity Pension Product Custody will be signed based on sufficient communication between the Bank and customers; iii. Opening of account: custody accounts and securities accounts for corporate annuity pension products will be opened as required by regulatory authorities; v. Custody operation: services including asset custody, accounting, asset valuation, clearing and delivery, and transaction supervision will be provided according to custody agreement, and reports on custody service for corporate annuity pension assets will be submitted to regulatory authorities on a regular basis.
VI. Contact Information If you would like to apply for any service, please contact the Entrusted Asset Division I of Asset Custody Department under the Head Office of ICBC: Contact person(s): Feng Kunwei, Zheng Weiwei, and Zhang Yingbo Tel: (8610)66105656/81013681/66105774 Fax: (8610)66105769 E-MAIL: email@example.com, firstname.lastname@example.org, email@example.com