Core Viewpoint - The National Financial Regulatory Administration has officially released the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" which clarifies requirements for custody products, non-standard asset custody, funding behavior, and risk capital provision in the banking custody business [1][2]. Group 1: Implementation and Transition - The measures will take effect on February 1, 2026, with a three-year transition period for existing businesses [2]. - Existing judicial practices are increasingly holding custodians to higher standards of fiduciary duty, emphasizing the protection of investors' interests [2]. Group 2: Responsibilities and Limitations - The measures specify thirteen responsibilities that commercial banks are prohibited from undertaking in custody business, including assuming credit and market risks of custody products, providing guarantees, and funding support [3]. - Notably, the measures explicitly prohibit banks from providing liquidity support or financing commitments for custody products [4]. Group 3: Non-standard Asset Custody - The measures introduce specific requirements for the custody of non-standard assets, mandating banks to assess their capabilities and service levels before engaging in such custody [4]. - Banks must evaluate the capital strength, governance, compliance management, risk control, and market influence of product managers, as well as the transaction structure and valuation methods of the products [5]. Group 4: Valuation Responsibilities - Commercial banks are required to undertake review responsibilities for asset valuation, with clear stipulations in custody contracts regarding valuation objects, principles, methods, and error handling [5]. - When using model valuations, banks must carefully determine model parameters and avoid arbitrary adjustments, ensuring alignment with legal disclosure requirements if discrepancies arise with product managers [5].

Core Viewpoint - The National Financial Supervision Administration has released the "Supervision and Management Measures for Custody Business of Commercial Banks (Trial)" to enhance the supervision of custody services and promote their healthy development, prohibiting banks from guaranteeing principal or returns on custody products [1][2]. Group 1: Regulatory Framework - The new measures aim to clarify the basic rules for commercial banks conducting custody business, strengthen baseline requirements, and detail management standards for key areas [1]. - The measures emphasize the importance of maintaining legal integrity, improving internal governance, and enhancing service capabilities and transparency in custody services [1]. Group 2: Prohibited Activities - The measures explicitly list prohibited responsibilities and actions for commercial banks in custody business, including assuming credit or market risks for custody products and providing guarantees [2]. - Banks are also prohibited from making commitments regarding principal or returns, providing liquidity support, or financing commitments for custody products [2].