Industrial Bank Approved to Handle Social Security Funds Custody Business
Recently, after waltzing through the qualification examination by
China Banking Regulatory Commission (CBRC), Industrial Bank (hereinafter referred to as "the Bank")
successfully obtained the qualification of handling Social Security Funds Custody Business and
became the 12
th domestic shareholding commercial bank to achieved the above competency.
The Bank was approved to handle the custody business of securities
investment fund in April, 2004. So Far, several assets custody business such as securities
investment fund, master trust scheme by trust companies, collective assets management scheme by
securities companies, and overseas wealth management business on behalf of clientsbycommercial
bankshave been carried out in the Bank. And, withal, being approved by China Securities Depository
and Clearing Corporation Limited ([2006] No.18), the Bank also successfully obtained the
qualification of special clearing participant in March, 2006.
Since the successful proxy sale and custody of Industrial Bank
trend investment fund (LOF) in November, 2005, the Bank has actively carried out the trust assets
custody service, such as master trust scheme by trust companies, to extend its assets custody
business from the simplex securities investment fund custody to trust assets custody area. This
created more capacious space for other trust assets custody services as corporation annuity,
one-to-one client trust assets, collective financing scheme, social security fund, QFII, QDII, and
helped accumulated valuable experience. The passed one year saw the Bank's new speedy forward paces
on assets custody business. Up to September 2006, the Bank's assets custody business has
successfully taken over 31 products, in which 5 of them belonged to securities investment fund
category and 26 belonged to non-securities investment fund category. The scale of assets custody
lot hit 7.4675 billion and the size of net custody assets achieved RMB 7.7372 billion.
In the interest of promoting custody business, an improved system
involved business management, working flow, accounting, and inner control and supervision was
established to ensure the standardization, scientificization and systemization of the Bank's assets
custody services. Owned by assets custody department, the closed and independent working rooms,
video monitoring system, 24 hours call recording system, improved inner control and supervision
system, and professional inner control inspectors have guaranteed the security of the custody
product information. By resorting to self-contained and reliable accounting system, assets
evaluation system, investment supervision system, rights management system, special fund clearing
system, and express and efficient internet banking system, the resources were fully integrated and
a high-quality platform was created to satisfy the innovation on products and services. Moreover,
for operational process, the Bank has taken the first to apply the innovative pattern, the "T+1"
transaction mode, to handle fund redemption, which has maintained zero error rate all along and
helped protect the fund holders' benefit effectively.