Xin Lang Cai Jing·2025-12-12 10:13Core Viewpoint - The National Financial Supervision Administration has released the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to enhance the regulation and management of custody services, emphasizing the establishment of a negative list for prohibited custody products and strengthening qualification review and risk management [1][27]. Group 1: General Principles - The measures aim to promote the standardized and healthy development of custody business in commercial banks, based on relevant laws and regulations [3][29]. - Custody refers to the act of commercial banks providing asset custody and related services as an independent third party within the People's Republic of China [3][29]. - Custody products include various financial products and investment portfolios formed from special funds recognized by financial management departments [3][29]. Group 2: Custody Responsibilities - Commercial banks are required to provide services such as account opening, asset custody, clearing and settlement, accounting, asset valuation, information disclosure, and investment supervision for custody products [5][31]. - A custody contract must be signed, detailing the rights and obligations of all parties, and ensuring compliance and clarity in terms [5][31]. - Banks must evaluate the capital strength, governance, compliance management, risk control, and market influence of product managers before providing custody services [6][31]. Group 3: Management Requirements - Commercial banks must establish a governance structure for custody business, ensuring that the board and senior management are responsible for custody operations [43]. - A risk management system must be in place that is commensurate with the scale and complexity of the custody business [43]. - Banks are required to maintain a separation of custody business from other operations to prevent conflicts of interest [45]. Group 4: Prohibited Practices - Commercial banks are prohibited from managing custody products that are on the negative list, which includes products established illegally or managed by unqualified managers [20][48]. - Banks must not mix custody assets with their own or with other custody products, nor engage in the misappropriation of custody assets [37][48]. - The measures also prohibit banks from providing guarantees or liquidity support for custody products [37][48]. Group 5: Supervision and Legal Responsibilities - The National Financial Supervision Administration will strengthen ongoing supervision of custody business and can impose corrective measures on banks that do not meet the required standards [41][42]. - Banks must report significant matters related to custody business to the National Financial Supervision Administration in a timely manner [45][52]. - Violations of these measures can lead to penalties, including the suspension of related business activities [42][43].