Introduction
Third-party depository represents a significant reform in the management system of client’s transaction settlement funds throughout the securities industry, implemented in adherence to the "Securities Law" and regulatory mandates. Within this system, securities firms entrust the custodian bank to manage the investors' transaction settlement funds in segregated accounts. The custodian bank assumes the responsibility for fund deposits and withdrawals, and facilitates bank-securities transfers.
Built upon a closed, centralized bank-securities transfer mechanism, transaction inquiry channels, and banking oversight frameworks, Third-party Depository ensures the security of client funds.
*Article 131 of the "Securities Law": Funds for the transaction settlement of securities firm clients should be deposited in a commercial bank, managed in segregated accounts named after each client.
IB provides investors with bidirectional transfer services for their securities margin account funds and offers detailed inquiry services on margin account balances and settlements. This ensures the security of funds in the investor's securities margin account.
Service Highlights
Safe and Reliable Custody of Funds in IB: With IB's Third-party Depository Services, the security of investor funds is underpinned by the dual creditworthiness of IB and the securities firms. Investors can also monitor their securities fund status via IB's system to ensure financial safety.
*When inquiring through the IB system, discrepancies between management account balances and security capital ledger balances may arise due to the investor engaging in securities transactions on the day. Changes in the securities ledger balance will be reconciled after the end-of-day settlement (on the subsequent trading day).
Efficient and Convenient Bank-Securities Transfer: Individual investors can execute bank-securities transfers via various channels: IB branch counters, telephone banking, the IB Mobile Banking APP, online banking, securities firm counters, online trading platforms, and telephone commissioned. Institutional investors can apply for these transfers via IB branch counters, online banking, bank-to-bank platforms, and direct bank-to-business connections.
Application Procedures
★How to Apply for Third-party Depository Services
For Individual Investors — After opening a security capital ledger at a securities firm and completing the pre-designation procedure there, investors should bring their custody client agreement to an IB branch for Third-party depository confirmation. They are required to fill out the "Third-party Depository Account Business Application Form" and present valid personal identification. Alternatively, they can perform Third-party depository confirmation procedures online through the IB Mobile Banking APP or personal online banking channels. Holders of the IB card can also directly sign the custody client agreement at the securities counter and proceed with the designated custody bank procedures.
For Institutional Investors — Institutional investors must first complete the pre-designation procedure at their securities firm. Subsequently, they can conduct Third-party depository confirmation through IB channels, bringing their custody client agreement to an IB branch, filling out the "Third-party Depository Account Business Application Form," and providing the necessary account opening documentation.
*Note: The above procedures may vary depending on the differences between securities firms. For detailed information, please consult your account manager.
How to Apply for Third-party Depository Fund Transfers and Fund Inquiries
Through Securities Firms — Transactions can be conducted at the securities firm's counter, online trading platform, or via their telephone commissioned system.
*Note: Institutional investors can conduct "securities-to-bank" transfers through certain securities firm channels but cannot conduct "bank-to-securities" transactions.
Through IB — Branch Counters, Telephone Banking, Online Banking
Through Branch Counter — Complete the "Third-party Depository Transfer Business Application Form".
Telephone Banking (95561)
Online Banking — Access the official IB website (www.cib.com.cn). Individual clients can log in to the Personal Online Banking and select "Wealth Investment" then "Bank-Securities”. Corporate clients should log in to the Corporate Online Banking and choose "Investment Management" then "Bank-Securities Service".
The IB Mobile Banking APP: Access the IB Mobile Banking APP on your smartphone. After logging into the APP, choose "Bank-Securities Service." You can then opt for "Bank to Securities", "Securities to Bank", "Security Capital Inquiry", and "Same-Day Custody Transaction Details". Follow the on-screen instructions for the respective operations.
Interbank Platform: Institutional clients can log in to IB's interbank platform (f.cib.com.cn), and select "Settlement" → "Fund Settlement" → "Bank-Securities Service" to proceed.
Service Hours
The Third-party Depository Services are available on every trading day from 8:30 AM to 4:00 PM (The specific trading hours depend on the securities firm's system availability). The Third-party Depository Services will not be available on national holidays and at the time when securities exchanges are closed.
Kind Reminder:
*For individual investors, once you've successfully signed up for the Third-party Depository Services, IB will automatically activate services such as telephone banking, online banking, and mobile banking for initiating bank-securities services. You won't need to apply for these separately. Please note that the IB Third Party Depository System for Security Capital only supports IB cards and doesn't accommodate passbook accounts. Should you need to alter crucial details such as name, identification type, and number for your bank settlement account, please proceed to the securities firm's branch counter. Additionally, we request you to promptly visit an IB branch to update your bank account information.
*For securities firms that have activated Third-party Depository Services with IB: We've enabled Third-party Depository Services for almost all securities firms. For specific details on participating securities firms, kindly consult our counter staff or reach out to our telephone banking service.