What Is Commercial Escrow?

Asset custody business refers to a business with certain qualifications as a custodian, and in accordance with relevant laws and regulations, enters into an entrusted asset custodial contract with the client, safely keeps the assets invested in the trust, and performs the duties of the custodian. There are many types of bank custody business, including securities investment fund custody, entrusted asset custody, social security fund custody, corporate annuity custody, trust asset custody, rural social security fund custody, basic pension insurance personal account fund custody, supplementary medical insurance fund custody, collection Branch account custody, QFII (Qualified Foreign Institutional Investor) custody, valuables custody, etc.

Asset custody

The asset custody business is a business that accepts clients' entrustment, safely keeps client assets, exercises supervision duties, and provides services related to investment management.

On February 24, 1998, approved by the China Securities Regulatory Commission and the People's Bank of China, Industrial and Commercial Bank of China became the first domestic securities investment fund custodian bank. Over the past eight years, the Industrial and Commercial Bank of China, in accordance with the responsibilities and regulatory requirements given by laws and regulations such as the Securities Investment Fund Law of the People's Republic of China and the Measures for the Administration of Securities Investment Funds, has sought to promote the healthy and standardized development of the securities market. "Credit, diligence and due diligence" are the practice standards. Relying on strict and scientific risk management and internal control systems, standardized business management models, sound custody business systems, and strong marketing capabilities, we effectively safeguard the interests of asset trustees and provide fund management companies and Many asset management institutions provide secure, efficient and professional custody services.

Development of asset custody business

As of the end of December 2005, Industrial and Commercial Bank of China's custody assets exceeded 200 billion yuan, with an average annual increase of 73% in the scale of custody. 54 custody securities investment funds, with a market share of 32.6% in terms of total assets; custody of three QFII domestic securities investment assets by Credit Suisse, Daiwa Securities, and Dresden Bank; custody of China Life Insurance Corporation, China Reinsurance Group Company, Huatai Property Insurance Company and Taiping Life Insurance Company insurance assets and assets of a number of large enterprises (groups) corporate annuity funds; trust multiple asset securitization product portfolios.

Over the past eight years, the Industrial and Commercial Bank of China has maintained a leading market share in asset custody business. The custody business area has continued to expand. From the initial single securities investment fund to social security, securities, trust, insurance, QFII and other fields, the top ten have been established. The asset custody business system of fourteen types of products, and has established a relationship of mutual promotion and common development with investment funds and asset management industries.

After being selected as "China's Best Custodian Bank" by "Asia Currency" and "Global Custody" magazine in 2004, our bank was selected as "China's Best" by "Global Custody" and "Treasury" magazine respectively in 2005 Custody Bank ", our custody business has been widely praised by the international custody industry.

In 2005, the Industrial and Commercial Bank of China's asset custody business was the first to obtain SAS70 internal control auditing international certification, indicating that independent and impartial third parties fully recognized the risk management and soundness and effectiveness of the Bank's custody service operation process.

Organizational structure and staffing

Industrial and Commercial Bank of China Asset Custody Department is a functional department engaged in asset custody business. It has custody branches in Shanghai and Shenzhen. Most of the branches of the Bank are qualified to conduct entrusted asset custody business, of which 29 branches have been authorized to handle entrusted asset custody business. The Asset Custody Department consists of the Comprehensive Management Office, the Securities Investment Fund Office, the Entrusted Asset Office 1, the Entrusted Asset Office 2, the Global Asset Custody Office, the Research and Development Office, the Internal Risk Control Office, the Information Service Office, the Custody Business Operation Center and the Transaction Supervision Office.

Industrial and Commercial Bank of China's asset custody department currently employs 77 people, of which more than 75% of employees have more than three years of fund experience, more than 90% of employees have a bachelor's degree or higher and fund practice qualifications, and managers of department managers and above are graduate students or more Has a senior technical title.

Managed Business Services

Industrial and Commercial Bank of China is able and willing to provide professional consulting and services to outstanding capital market participants. The range of hosting services includes:

Basic services

Asset custody

Liquidation of funds

3. Investment supervision

Financial report

5. Keep records

6. QDII Business

Value-added services

According to the escrow operation process, the escrow value-added services provided by the Bank include more than 20 specific services in four major categories: pre-transaction, during-transaction, post-transaction, and other. If you need our bank to provide value-added custody services, please contact the relevant department of the asset custody department of our bank.

solution

(I) Cooperative business cooperation procedures

The Securities Investment Fund Division, the Entrusted Asset Division 1, the Entrusted Asset Division 2 and the Global Asset Custody Division of the Industrial and Commercial Bank of China's Asset Custody Department are the windows through which ICBC can contact various custody services. The fund custody business of various asset management companies can contact the Securities Investment Fund Office; the custody business of various assets of insurance companies can contact the Entrusted Assets Office; other types of institutions (such as securities companies, trust companies, financial companies and others Customers with escrow requirements) who wish to cooperate with our bank in entrusted assets such as corporate annuities, social security funds, trust plans, etc., can contact the entrusted assets in one place; qualified foreign institutional investors (QFII) and qualified domestic institutional investors (QDII) and other clients' custody business cooperation can contact the Global Asset Custody Service.

After the Securities Investment Fund Division, Entrusted Assets Division 1, Entrusted Assets Division 2 and Global Asset Custody Service understand customer needs, they will communicate with customers on business cooperation related matters, and arrange relevant business departments and leaders to meet with customers. Once the cooperation project is determined, the account manager will be appointed to be responsible for liaising with the client and providing consulting, solution design and other services. At the same time, the Entrusted Assets Division 1 also assumed part of the management responsibilities of the branches.

The custody business operation center of the Industrial and Commercial Bank of China's asset custody department undertakes the functions of handling custody business, specifically handling asset account management, accounting, asset valuation, capital clearing, investment of securities investment funds, QFII assets, QDII assets and other entrusted assets. Transaction supervision and other businesses.

The Transaction Supervision Department of the Asset Custody Department is mainly responsible for the supervision of the operation of assets under custody.

The Research and Development Division of the Asset Custody Department is responsible for leading the organization to complete the research and development of new custody products and the development of new functions of the custody system.

The Information Service Department of the Asset Custody Department is mainly responsible for the collection and arrangement of customer information, market information and policy information, and is responsible for entrusted asset investment analysis and other matters.

The Comprehensive Management Division of the Asset Custody Department is responsible for information disclosure, promotion and business training of custody products and custody business.

The Internal Risk Control Department of the Asset Custody Department is responsible for the business risk control of the custody department and the review of legal documents, and provides legal consulting support to relevant business divisions, and strives to make various legal documents more standardized and accurate. On this basis, the legal affairs department of ICBC reviews all legal documents.

In addition, for different business cooperation projects, ICBC will set up different project working groups to carry out work to maintain corresponding consultations and exchanges with customers' professionals in product research, technology implementation, business processing, marketing planning, and regulatory documents. All technical support departments, marketing business departments, trusteeship departments, legal and internal control departments involved in the business will participate in the project and jointly guarantee the completion of the implementation of the project plan.