China Securities Regulatory Commission, Measures for the Administration of the Securities Investment Fund Custody Business (Draft for Comments)

中国证券监督管理委员会证券投资基金托管业务管理办法 (征求意见稿)

June 05, 2020 | BY

Susan Mok

CBIRC supports foreign bank branches in applying for fund custody qualifications

Clp Reference: 3700/20.05.09 Promulgated: 2020-05-09
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Issued: May 9, 2020

Main contents: The Measures support foreign bank branches in applying for fund custody qualifications, suitably consider the scale of assets and business experience of the head offices of the foreign banks, specify the conditions a branch is required to fulfill to apply and further improve the access arrangements, such as net assets.

The Measures improve arrangements for the oversight of fund custodians, establish a mechanism for pursuing the liability of head offices of foreign banks and set forth requirements in respect of the cross-border setup of information systems and the cross-border flow of data. They continue to strengthen risk management and interim and ex post oversight.

They continue to promote the streamlining of administration and delegation of authority, permit applicants to further proceed with preparatory work in terms of personnel, systems, premises, etc. after securing approval, and optimize the application materials and onsite inspection arrangements.

The Measures unify the entry criteria and regulatory requirements for commercial banks and other financial institutions, and bring the requirements in respect of fund custody business engaged in by non-bank financial institutions under their purview.

clp reference: 3700/20.05.09 issued:2020-05-09

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