Core Viewpoint - The National Financial Regulatory Administration has established the "Interim Measures for the Supervision and Management of Custody Business of Commercial Banks" to enhance the supervision and management of custody services, ensuring standardized and healthy development of the business [1] Group 1: Regulatory Framework - The new measures clarify the basic rules for commercial banks to conduct custody business, emphasizing bottom-line requirements and detailed management standards for key aspects [1] - The measures aim to promote the integrity of legal contracts, improve internal governance, enhance service capabilities, and effectively manage risks [1][3] Group 2: Custody Business Principles - Commercial banks must adhere to principles of honesty, diligence, independence, and risk isolation when providing custody services [2] - The measures specify that banks should conduct thorough assessments of the capabilities and service levels before engaging in custody for non-standard assets [2] Group 3: Prohibited Responsibilities - The measures outline prohibited responsibilities and actions for banks, including taking on credit or market risks of custody products and providing guarantees for principal or returns [2][3] Group 4: Supervision and Management - Continuous supervision by the National Financial Regulatory Administration and its branches is mandated, with a focus on compliance and prudence in custody business [3] - Banks are required to establish a robust governance structure for custody business, addressing management systems, business independence, and data protection [3][4] Group 5: Risk Management and Independence - Banks must develop a risk management system that aligns with the scale and complexity of their custody business, ensuring effective separation from other business operations [4] - There is a need for stringent due diligence and management of custody products and partner institutions, with clear standards for client qualifications and product types [4]

Core Viewpoint - The National Financial Regulatory Administration has established the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to enhance the supervision and management of custody services, ensuring standardized and healthy development of the business [1] Group 1: Overview of Custody Business - Custody services provided by commercial banks have expanded steadily, covering a variety of financial products such as wealth management products, trust funds, and pension funds, effectively meeting diverse needs for asset custody, product accounting, and asset valuation [1] - The new measures aim to improve the professionalism, refinement, and standardization of custody services, as well as risk management capabilities in response to the ongoing development of a high-standard market system and deepening market-oriented reforms [1] Group 2: Key Regulations and Responsibilities - The measures specify that commercial banks must adhere to principles of honesty, diligence, independence, and risk isolation when providing custody services, ensuring the independence of the custodial assets [2] - Commercial banks are required to conduct thorough assessments of their capabilities and service levels before engaging in custody services for non-standard assets, including evaluating the capital strength, governance, compliance, risk control, and market influence of product managers [2] - The measures outline prohibited responsibilities and actions for commercial banks, including assuming credit or market risks of custodial products and providing guarantees for principal or returns [2] Group 3: Supervision and Management - The measures emphasize the need for continuous supervision by the National Financial Regulatory Administration and its branches, enhancing cross-departmental regulatory collaboration and incorporating compliance and prudence into regulatory ratings [3] - Commercial banks are required to establish a robust governance structure for custody business, with specific norms for management systems, business independence, authorization control, and data protection [3] Group 4: Internal Management and Risk Control - To effectively manage risks, commercial banks should develop a risk management system that aligns with the scale and complexity of their custody business, ensuring proper authorization management and establishing checks and balances [4] - The independence of custody business must be reinforced by isolating it from other operations, including personnel, physical locations, accounts, and data management systems [4] - Commercial banks must protect and utilize custody data and client information effectively, while also conducting due diligence on custody products and partner institutions [4]

Core Viewpoint - The National Financial Supervision Administration has established the "Interim Measures for the Supervision and Management of Custody Business of Commercial Banks" to enhance the supervision and management of custody services, ensuring their standardized and healthy development [1] Group 1: Regulatory Framework - The new measures clarify the basic rules for commercial banks to conduct custody business, emphasizing bottom-line requirements and detailed management standards for key aspects [1][3] - The measures aim to promote the spirit of honesty and trust in legal contracts, improve internal governance, enhance service capabilities, and effectively manage risks [1][3] Group 2: Custody Business Principles - Commercial banks must adhere to principles of honesty, diligence, independence, and risk isolation when providing custody services [2] - The measures specify that banks should conduct thorough assessments of their capabilities and service levels before engaging in custody for non-standard assets [2] Group 3: Prohibited Responsibilities and Actions - The measures outline prohibited responsibilities for banks, including assuming credit or market risks of custody products and providing guarantees for principal or returns [2][3] Group 4: Supervision and Management - Continuous supervision by the National Financial Supervision Administration and its branches is mandated, with a focus on compliance and prudence in custody business [3] - Banks are required to establish a robust governance structure for custody business, addressing management systems, business independence, and data protection [3][4] Group 5: Risk Management and Independence - Banks must develop a risk management system that aligns with the scale and complexity of their custody business, ensuring effective separation from other business operations [4] - Data protection and due diligence on custody products and partner institutions are emphasized, with specific standards for client qualifications and product types [4]

Core Viewpoint - The Financial Regulatory Bureau has issued the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to enhance supervision and promote the healthy development of custody business in commercial banks [1][2]. Group 1: Key Provisions of the Measures - The Measures consist of five chapters and 49 articles, clarifying the concept and basic principles of custody business, detailing the responsibilities of custodians, and establishing management requirements [1]. - It emphasizes the need for a sound governance structure and outlines the supervisory responsibilities of regulatory authorities regarding custody business [1]. - The Measures also specify transitional provisions for implementation, aiming to strengthen risk management and promote high-quality development of custody services [1]. Group 2: Importance and Implications - The introduction of the Measures addresses the regulatory shortcomings in the custody business of domestic commercial banks, highlighting the importance of clearly defining roles and responsibilities [2]. - It aims to prevent the transfer of risks from custody products to the banks themselves, thereby enhancing financial stability [2]. - The Measures prohibit banks from assuming certain risks associated with custody products, such as credit and market risks, and from providing guarantees or liquidity support [2][3]. Group 3: Market Impact - The Measures aim to eliminate the misconception that bank custody equates to implicit guarantees, thereby establishing a clear risk isolation framework [3]. - Following the implementation of the Measures, competition among banks will shift towards asset security, operational efficiency, and transparency in information disclosure, moving away from reliance on implicit credit enhancement [3].

Core Viewpoint - The introduction of the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" aims to strengthen the supervision and management of custody business in commercial banks, promoting standardized and healthy development in this sector [1][2]. Group 1: Key Provisions of the Measures - The Measures consist of five chapters and 49 articles, clarifying the concept and basic principles of custody business, detailing the responsibilities of custodians, and establishing management requirements [1]. - It emphasizes the need for a robust governance structure and outlines the supervisory responsibilities of regulatory authorities regarding custody business [1]. - The Measures also specify transitional provisions for implementation, ensuring a clear framework for commercial banks to follow [1]. Group 2: Importance and Implications - The Measures address the regulatory shortcomings in the custody business of domestic commercial banks, highlighting the importance of clearly defining roles and responsibilities [2]. - It aims to prevent the transfer of risks from custody products to the banks themselves, thereby enhancing financial stability [2]. - By prohibiting certain actions such as providing guarantees or engaging in investment decision-making, the Measures create a clear boundary between custodial duties and other financial responsibilities [3]. Group 3: Market Impact - The implementation of the Measures is expected to shift the competitive landscape, moving away from implicit guarantees towards a focus on asset safety, operational efficiency, and transparency [3]. - This transition will encourage banks to enhance their professional service capabilities rather than relying on channel dependencies [3].

Core Viewpoint - The newly released regulatory framework for commercial bank custody services aims to enhance risk management, service quality, and transparency in the industry, with a transition period for existing businesses until February 1, 2029 [1][3][12] Group 1: Regulatory Framework - The National Financial Supervision Administration has issued the "Supervision and Management Measures for Commercial Bank Custody Business (Trial)" which will take effect on February 1, 2026, and includes a three-year rectification period for existing businesses [1][7] - The new measures require banks to identify and assess risks accurately, strengthen risk management systems, and enhance the independence of custody services [1][3] Group 2: Basic Services - The measures specify seven types of basic services that banks can provide, including account opening, asset custody, clearing and settlement, accounting, asset valuation, information disclosure, and investment supervision [2][8] - Banks must sign custody contracts that clearly outline compliance, risk disclosure, and the rights and obligations of all parties involved [2][8] Group 3: Prohibitive Duties - The measures outline eight prohibited duties and behaviors for banks in custody operations, aiming to clarify responsibilities and prevent excessive risk-taking [4][10] - New prohibitions include not providing liquidity support or financing commitments for custody products and not disclosing information on behalf of product managers [11] Group 4: Market Impact - The implementation of these measures is expected to reshape the custody business ecosystem by eliminating "pseudo-custody" practices and promoting competition based on service quality rather than risk coverage [4][10] - The measures aim to correct the misconception that bank custody equates to implicit guarantees, thereby establishing a clear risk isolation framework [5][11] Group 5: Transition and Compliance - Banks are required to conduct a comprehensive review of existing businesses, establish a problem ledger, and develop a phased rectification plan by February 1, 2029 [12] - Internal systems must be improved, operational processes revised, and staff trained to ensure compliance with the new regulations [12]

Core Viewpoint - The implementation of the new regulatory framework for commercial bank custody services aims to enhance risk management, improve service capabilities, and ensure compliance within the industry, addressing long-standing issues of unclear responsibilities and risk control standards [1][3]. Group 1: Regulatory Framework - The National Financial Regulatory Administration has issued the "Supervision and Management Measures for Commercial Bank Custody Business (Trial)" which will take effect on February 1, 2026, with a three-year transition period for existing businesses [1]. - The new measures require banks to identify and assess risks accurately, strengthen risk management systems, and enhance the independence of custody services [1][3]. Group 2: Service Specifications - The measures specify seven basic services that commercial banks can provide, including account opening, asset custody, clearing and settlement, accounting, asset valuation, information disclosure, and investment supervision [2]. - Banks must sign custody contracts that clearly outline compliance, risk disclosure, and the rights and obligations of all parties involved [2]. Group 3: Risk Management and Responsibilities - The new regulations introduce eight prohibited responsibilities and actions for banks in custody operations, aiming to clarify responsibilities and prevent excessive risk-taking [4]. - Prohibitions include providing liquidity support or financing commitments for custody products, which helps to establish a clear boundary between bank responsibilities and product risks [5]. Group 4: Transition and Compliance - A three-year transition period is set for existing businesses to comply with the new regulations, requiring banks to classify asset risks and make necessary provisions [6]. - Banks are advised to conduct a comprehensive review of existing businesses, update internal procedures, and enhance monitoring systems to align with the new regulations [6].

Core Viewpoint - The National Financial Supervision Administration has established the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to enhance the supervision and management of commercial banks' custody business, promoting its standardized and healthy development [1] Group 1: Regulatory Framework - The newly implemented measures aim to fill the regulatory gap in the custody business of commercial banks, which has seen significant growth and diversification in recent years [1] - The measures consist of five chapters and 49 articles, covering general principles, custody responsibilities, management requirements, supervision and management, legal responsibilities, and supplementary provisions [1] Group 2: Business Requirements - The measures define the concept of custody business and outline the basic principles for conducting such business, requiring commercial banks to establish a sound governance structure and management system for custody services [1] - Banks are expected to provide appropriate custody services based on their capabilities and service levels [1] Group 3: Supervision and Compliance - The measures reinforce continuous supervision, regulatory penalties, data reporting, and self-regulation arrangements to ensure compliance within the custody business [1]

Core Viewpoint - The Financial Regulatory Bureau has officially released the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to strengthen the supervision of custody business and promote its standardized and healthy development [1][3]. Group 1: Overview of the Measures - The Measures consist of five chapters and 49 articles, covering general principles, custody responsibilities, management requirements, supervision and legal responsibilities, and supplementary provisions [1]. - The Measures clarify the concept and basic principles of custody business for commercial banks [1]. - It specifies the responsibilities that commercial banks must undertake when conducting custody business, emphasizing the accountability of custodians [1]. Group 2: Management and Supervision Requirements - The Measures establish basic management requirements for custody business, mandating the establishment of a sound governance structure [1]. - It outlines the supervisory responsibilities of regulatory authorities regarding the custody business of commercial banks and the legal liabilities involved [1]. - The Measures also detail the internal management requirements for custody business and reinforce continuous supervision, regulatory penalties, data reporting, and self-regulatory arrangements [1]. Group 3: Prohibited Responsibilities and Actions - To address unclear boundaries of responsibilities leading to excessive risk-taking, the Measures list prohibited responsibilities and actions for commercial banks in custody business [2]. - Prohibitions include assuming credit risk, market risk, providing guarantees, and participating in investment decision-making for custody products [2]. - The Measures aim to ensure that commercial banks do not mix custody product assets with other assets and maintain clear operational boundaries [2]. Group 4: Importance and Future Directions - The custody business of commercial banks plays a crucial role in enhancing market supervision, standardizing investment operations, and preventing moral hazards [3]. - The implementation of the Measures is expected to fill the regulatory gaps in the custody business and promote high-quality development [3]. - The Financial Regulatory Bureau will continue to supervise commercial banks to improve their management and risk prevention capabilities, ensuring the custody business develops in a standardized and healthy manner [3].

Group 1 - The National Development and Reform Commission announced that macroeconomic regulation will be proactive next year, focusing on expectation management and introducing new measures to promote stable and high-quality economic growth [1] - The National Financial Regulatory Administration released the "Supervision and Management Measures for Commercial Bank Custody Business (Trial)", which aims to strengthen supervision of commercial bank custody services and prohibits banks from guaranteeing principal or returns on custody products [1] - The Central Economic Work Conference indicated that the main expected goals for economic and social development in 2025 will be achieved smoothly, marking a successful conclusion to the "14th Five-Year Plan" [1] Group 2 - The National Film Administration reported that the total box office for the year has reached 50.003 billion yuan, with total attendance at 1.194 billion [2] - The UK Office for National Statistics announced a 0.1% month-on-month decline in GDP for October, indicating a greater-than-expected economic slowdown [2] Group 3 - The Indian Cabinet approved the export of coal from power plants with excess coal inventory [3] - The National Medical Security Work Conference aims to achieve "no out-of-pocket" expenses for childbirth within the policy scope nationwide by next year, with several provinces already providing full coverage for hospitalization costs related to childbirth [3] - Multiple departments, including the State Administration for Market Regulation, issued guidelines to improve the quality of products and services on online trading platforms, addressing issues such as product discrepancies and complicated consumer rights protection processes [3]