Safekeeping of Trust Property

Introduction of Functions

Subject to relevant laws, regulations and safekeeping contract, IB provides trust companies with all or partial safekeeping service as follows: set up separate account for different trust (plan) property to ensure the independence of trust property; keep funds safe in special trust account; clearing, payment and accounting; confirm and execute trust companies' orders to manage and use trust property, check transaction record, capital and property account of trust property regularly; record transfer of funds and keep trust companies' explanation on use of funds; evaluate trust property regularly; issue safekeeping report regularly; and review liquidation report of trust property.

Features

IB has obtained custody license of securities investment fund in April 2005 and custody license of insurance funds in 2009, and has established a strict and formal business system. With advanced custody business system and rich experience in safekeeping trust property, IB can provide safe and effective trust property safekeeping service for trust companies.

Procedure:

1. Trust companies negotiate custody of trust plan with IB's branches, and reach initial agreement on custody service and charge rate.

2. IB drafts safekeeping agreement according to trust documents and submits to trust companies for confirmation.

3. After reached consensus, both parties sign safekeeping agreement and relevant legal instruments, and trust companies open special trust account at IB.

4. After trust funds have been raised and transferred into special safekeeping account in full, IB provides custody service within the scope agreed in custody agreement of trust plan, and performs duties including property safekeeping, funds clearing, accounting, investment supervision and disclosure.