In order to further strengthen the supervision and management of commercial bank custody business and promote the standardized and healthy development of commercial bank custody business, the CBRC has formulated the Measures for the Supervision and Management of Commercial Bank Custody Business (hereinafter referred to as the Measures) in accordance with the Banking Supervision Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China and other laws and regulations, as well as the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions, Public consultation will begin on December 29, 2022.

The Measures consists of six chapters and 48 articles, including general provisions, basic requirements, business scope and custody responsibilities, management requirements, supervision and management, legal responsibilities, and supplementary provisions.

The main contents include:

First, define the relevant concepts and basic principles of commercial bank custody business. Custody business refers to the act of commercial banks as independent third parties to provide property custody and related services for various asset management products and social security funds, pensions, insurance funds, etc. Commercial banks follow the principles of honesty and credit, diligence and responsibility, independence and prudence, and risk isolation to ensure the independence of the custody property.

Second is to define the basic requirements that commercial banks should continue to meet when conducting custody business.

Third, clarify the scope of custody business and custody responsibilities. Commercial banks are required to divide custody product assets into trustable assets and other assets according to whether they can actually control, provide appropriate custody services and other services according to their own capabilities and service levels, and clarify the rights and obligations of each party through the custody contract.

Fourth, put forward the management requirements for custody business. Commercial banks are required to establish and improve the governance structure of trusteeship business, and put forward specific requirements from management system, management system, business independence, authorization control, business access, publicity and marketing, data protection, etc.

Fifth, further strengthen relevant arrangements such as continuous regulatory measures, regulatory penalties, data submission and self-discipline management.

The formulation and promulgation of the Measures is conducive to further defining the scope of custody business and business norms of commercial banks, and improving the level of refined management; It is conducive to giving better play to the role of the third-party independent trusteeship mechanism and providing support for the development of asset management and other fields; It is conducive to further strengthening the supervision of commercial banks' custody business, urging commercial banks to implement the main responsibility of risk management and compliance development, and realizing prudent and stable operation.

In the next step, the CBIRC will, based on the public solicitation of opinions, do a good job in revising, improving, releasing and implementing the Measures, continue to urge commercial banks to improve their management and risk prevention capabilities, and promote the standardized, healthy and high-quality development of custody business.