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Custody Service for Wealth Management Products of Commercial Banks

I. Product Overview
Custody service for wealth management products of banks refers to the financial assets services and business that ICBC accepts the entrustment of financial institutions in the banking industry (including the Bank, other commercial banks, policy banks and rural financial institutions) to safely keep wealth management products and assets, and perform the responsibilities of capital clearing, security settlement, accounting, asset valuation, investment supervision and custody reporting.
ICBC, in cooperation with a number of domestic and overseas commercial banks in custody for wealth management products, renders custody services for such wealth management products as non-fixed super short-term, rolling super short-term, fixed-term, rolling issued products with different terms, as well as other innovative wealth management products like cash management, fixed-yield, stocks, commodities, foreign exchange, equities, alternatives, QDII etc. Having accumulated rich experience in custody services for wealth management products of commercial banks, ICBC is able to carry out comprehensive business cooperation with other commercial banks in all sorts of wealth management businesses and inter-bank financial businesses, with its great technological power of custody.
ICBC introduced ESCROW to meet regulatory rule that “to issue wealth management products, commercial banks should entrust a commercial bank with custody qualifications for securities investment fund to manage its wealth management funds and assets it invests”. It is not only required by the regulator, but also good for increasing the operational efficiency of wealth management products and reducing operating costs, improving the governance structure of wealth management and investment and boosting the credibility of our wealth management products.

II. Target Customers
Target Customers include state-owned commercial banks, joint-stock banks, urban commercial banks, rural financial institutions, foreign-funded banks and policy banks that issue and manage wealth management products.

III. Scope of Services
i. Safekeeping wealth management products
Special wealth management custody accounts are established for managing independent portfolio of single wealth management products and safekeeping wealth management funds.
ii. Handling fund clearing
ICBC confirms and executes instructions on managing and employing wealth management funds, reviews and handles wealth management funds, delivery & collection of wealth management funds and fund clearing.
iii. Accounting and asset valuation
ICBC offers complete and compliant accounting & valuation of wealth management products under its custody and scientifically measures the market value of wealth management products; compile and cross-check accounting statements with the manager of wealth management products on a regular basis to ensure the compliance and accuracy of accounting and financial records; preserving changes records, accounting books, statements and other materials of wealth management products under its custody.
iv. Overseeing investment of wealth management products
ICBC supervises and checks the scope & target of wealth management products employed, portfolio proportion, investment limits, provisions for related expenses etc. It also sees to whether there is any act in management and operation of wealth management assets that is banned by laws, regulations, relevant documents and contracts.
v. Disclosing information regularly
ICBC checks and confirms information to be disclosed that is subject to re-check of the custodian in management and employment of wealth management assets, and regularly provides financial data and information reports.

IV. Advantages
i. ICBC, as the largest commercial bank in China, enjoys a good social reputation, which greatly enhances the credibility of wealth management products under its custody.
ii. ICBC is quite experienced in custody of wealth management products including currencies, financing products, bonds, floor investment securities, asset management plans and innovative wealth management products. It is able to offer custody of wealth management products in many areas and in different combined formats and wealth management products of different kinds.
iii. ICBC, on the strength of its powerful custody service system, can open special custody accounts flexibly based on the features of wealth management products, set different custody control information and provide all-around, efficient and specialized custody services for wealth management products.
iv. All tier-1 (or directly-controlled) branches of ICBC have introduced the asset custody service, thus being able to provide localized custody of commercial banks’ wealth management products by virtue of its branches nationwide.

V. Business Guide
i. Business contact: Commercial banks in need of custody services for wealth management products may contact the Asset Custody Department of ICBC Head Office or local branch or sub-branch of ICBC.
ii. Signing of contract: ICBC, through communication, designs custody plan and enters into custody contract based on the requirements of commercial banks on custody of their wealth management products.
iii. Opening of account: Upon entrustment, ICBC opens wealth management product custody account based on the issuing and management features of wealth management products of commercial banks.
iv. Custody operation: According to custody contract, ICBC provides asset safekeeping, accounting, asset valuation, clearing and delivery in respect of commercial banks’ wealth management products, oversees the investment operation of wealth management funds and offers custody data and information reports regularly.

VI. Contact Information
If you would like to apply for any service, please contact your local branch or sub-branch of ICBC or the Entrusted Asset Division II of Asset Custody Department of ICBC:
Liaison: Dun Wenkai, Guo Yuting
Tel.: (8610)66105690/5773
Fax: (8610)66105769
E-MAIL: duanwkzctg@icbc.com.cn