Administrative measures on securities investment fund custody business

    (April 2, 2013, the China Securities Regulatory Commission and China Banking Regulatory Commission to the 92nd release since April 2, 2013) Chapter I General provisions

    First in order to standardize Securities Investment Fund custody business, maintain order in the investment fund custody business competition, protect the legitimate rights and interests of share holders of the Fund and the related parties, promote the healthy development of the Securities Investment Fund, according to the securities investment fund law, the banking regulatory law and other relevant laws, administrative regulations, and these measures are formulated.

    Second article this approach by said Securities Investment Fund (following referred to fund) managed, is refers to by law established and made Fund managed qualification of commercial banks or other financial institutions served as managed people, according to legal regulations of provides and the Fund contract of agreed, on Fund perform security custody Fund property, and handle liquidation delivery, and review review assets net, and carried out investment supervision, and convened Fund share holds people Assembly, duties of behavior. Article banks engaged in Fund custody business, shall be approved by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and China Banking Regulatory Commission (hereinafter referred to as the China Banking Regulatory Commission) approval, obtain qualifications for funds managed according to law.

    Other financial institutions engaged in Fund custody business, should be approved by the China Securities Regulatory Commission, obtain qualifications for funds managed according to law.

    Not qualified as a fund managed by institutions may not engage in Fund custody business.

    Article fourth trustee shall abide by the laws and regulations of custody agreement as well as the Fund contract and Fund Conventions, abide by professional ethics and codes of conduct, honesty, prudence and industrious, for the interests of Fund shareholders Fund managed functions.

    The fifth trustee of Fund custody Department senior management and other employees shall perform their duties faithfully and diligently, damage shall not engage in fund assets and fund shareholders ' interests in securities trading and other activities.

    The sixth section of China Securities Regulatory Commission, China Banking Regulatory Commission in accordance with the laws and regulations and the principles of prudential supervision, custodian of the Fund and Fund custody business activity monitor.

    Article seventh according to the laws and regulations of China Securities Investment Fund Industry Association and self-regulatory rules, self managed operations the Fund custodian and fund management.

    Chapter II Fund custodian

    Eighth eligibility criteria for Fund managed by commercial banks (hereinafter applicant) shall satisfy the following conditions:

    (A) the last 3 shall not be less than 2 billion yuan of net assets at the end of the fiscal year, capital adequacy risk control indicators such as compliance with regulatory provisions;

    (B) has a specific fund managed sectors, the Department set up to ensure the integrity and independence of managed business operations;

    (Three) Fund managed sector intends any senior management personnel meet statutory conditions, made Fund practitioners qualification of personnel not below the sector employees number of 1/2; intends engaged in Fund liquidation, and accounting, and investment supervision, and information disclosure, and internal audit monitoring, business of practice industry personnel not less than 8 people, and has Fund practitioners qualification, which, accounting, and supervision, core business post personnel should has 2 years above managed business practitioners experience;

    (D) safe custody of Fund property, ensure that the integrity and independence of the conditions;

    (E) secure and efficient clearing and settlement systems;

    (F) Fund custodian departments to meet the business needs of fixed places, equipped with independent safety monitoring system;

    (G) Fund custody Department is equipped with independent hosting business technology systems, including network systems, application systems, security systems, data backup system;

    (H) has a comprehensive internal auditing and monitoring system and risk control system;

    (IX) the last 3 years no major violation records;

    (J) the laws, administrative regulations, and approved by the State Council of China Securities Regulatory Commission, China Banking Regulatory Commission under other conditions.

    Article the applicant shall have a sound system of clearance and settlement services, clearing and settlement systems should comply with the following requirements:

    (A) system of securities trading settlement funds transfers to accounts in a timely manner;

    (B) from the exchanges, securities registration and clearing institutions and other related institutional security receives the clearing data;

    (C) the Fund management and fund registration, securities registration and clearing institutions operational agencies, such as system security and docking;

    (D) carrying out investment fund manager directive, timely clearing and settlement matters.

    Article applicant Fund custody business premises, safety precaution facilities and amenities with Fund custody business and related systems shall comply with the following requirements:

    (A) the Fund custodian departments business sites are relatively independent, equipped with access control systems;

    (B) the access fund data business post has a separate office space, staff are not free to enter;

    (C) has a comprehensive fund data confidentiality;

    (D) Security Fund custody business data backup system;

    (E) Emergency Programme Fund custody business, emergency response capacity.

    The 11th applicant shall submit the following application materials to the China Securities Regulatory Commission, and reported to the CBRC:

    (A) the application;

    (B) securities issued by a qualified accounting firm's net worth and capital adequacy ratio of special capital verification report;

    (C) establishment of Special Fund custody Department documents, ensure operational integrity and independence of the Department's statements and commitments;

    (D) the internal organization and job requirements;

    (E) Fund custody Department proposed senior management personnel and practitioners basic information, including senior managers to be appointed office materials, lists of practitioners to be appointed, curriculum vitae, copies of professional qualifications for the Fund certificates, professional training and job availability;

    (Vi) reports on the security conditions for custody of Fund assets;

    (VII) on the Fund's operation of the clearing and settlement system test report;

    (H) the Office floor plans, safety monitoring and control system design and installation and commissioning reports;

    (I) the Fund custody business backup system design and emergency response programs, emergency response capacity test report;

    (J) the related business rules and regulations, including business management, operating procedures, fund accounting, Fund settlement, disclosure of information, internal auditing and control, internal control and risk management, information systems management, personnel management, security and records management, major suspicious reports, emergency response, and other rules and regulations required to perform trustee duties;

    (11) the start-up Fund custody business of business plans;

    (12) the China Securities Regulatory Commission, China Banking Regulatory Commission for other materials. 12th the CSRC shall within 5 working days from the date of receipt of application materials to make admissibility decisions.

    Application materials are complete and comply with the statutory format, issue a written acceptance to the applicant documents; application materials are incomplete or not in compliance with the statutory form, shall inform the applicants need a correction in its entirety. 13th the CSRC shall accept the application materials made within 20 working days from the date of the administrative decision.

    Approval of the China Securities Regulatory Commission to make decisions, should sign the CBRC; not to the approval decision, it shall explain the reasons and inform the applicant, the licensing procedure to terminate. The China Banking Regulatory Commission shall receive within 20 working days from the date of signing, and make a decision on the administrative license.

    Approved decisions of the China Banking Regulatory Commission, China Securities Regulatory Commission and China Banking Regulatory Commission jointly issued the approval document, and Fund custody business license issued by the CSRC; not to approve decisions of the China Banking Regulatory Commission, it shall explain the reasons and inform the applicant, the licensing procedure to terminate.

    14th China Securities Regulatory Commission, China Banking Regulatory Commission before making a decision on approval, you can take the following approach to the review:

    (A) to peer-review application materials, including the contents of verification;

    (B) joint custody Department of the Fund to be established to build on commercial banks conducted on-site inspections, on-site inspections by two or more staff, on-site inspection time is not calculated within the period stipulated in this article 13th. 15th article qualified as a fund managed by commercial banks as the trustee of the Fund.

    Trustee shall promptly apply for Fund custody Department senior management appointment procedures.

    Chapter III managed implementation of the mandate of 16th article Fund managed people in and fund management people made Fund contract, and fund recruitment manual, and fund managed agreement, legal file Qian, should from protection fund share holds people angle, on involved investment range and investment limit, and fund costs, and returns distribution, and accounting valuation, and information disclosure, aspects of terms for assessment, ensure related agreed collection rules clear, and risk reveals full, and accounting valuation science fair.

    Fund custody agreement, should also fund trustee business with fund managers agreed in detail supervision and coordination responsibilities.

    17th the custodian shall safe keep Fund assets in accordance with the relevant provisions and Fund custody agreement shall perform the following duties:

    (A) are set for different fund assets managed by Fund account investment required accounts, securities accounts, ensure that the independence and integrity of the property;

    (B) establish mechanisms for reconciliation with the Fund Manager, check the cash and securities accounts, net asset value and other data, and timely verification of subscription and purchase funds to the accounts, the payment of redemption money and payments and account of investment funds, and fund accounting, transactions, contractual agreements, and other important files for 15 years or more;

    (C) property investment information and confidential information obligations of the Fund, in addition to laws, administrative regulations and other related regulations, regulatory bodies and audit requirements, shall not disclose to any institution or individual-related information and data.

    18th Fund Trustees should be signed a settlement agreement and related securities registration and clearing institutions shall bear relevant responsibilities as market clearing participants. Custodian and the Fund Manager shall sign a settlement agreement or agreed to settlement terms in the Fund escrow, clear mutual fund settlement and related responsibilities for risk control.

    Fund settlement process, appear insufficient funds or securities to fund property settlement, Fund custodians shall notify the Fund Manager, urged fund managers take active measures, maximum control settlement risk of default-related losses and reported the China Securities Regulatory Commission. 19th Fund custodian and Fund Administrator shall, in accordance with the accounting standards for business enterprises and the estimates account for the relevant regulations of the China Securities Regulatory Commission, valuation methods for financial instruments be regularly assessed. Fund Trustees found error net valuation of fund units, prompted fund managers should be corrected immediately and take reasonable measures to prevent the loss of further expansion.

    Fund Trustees found net valuation of fund units to major errors or valuation of a major deviation from, should prompt the Fund Manager shall comply with disclosure and reporting obligations.

    20th article Fund managed people should according to legal regulations of provides and Fund contract of agreed handle and fund managed business about of information disclosure matters, including but not limited to: disclosure Fund managed agreement, on Fund regularly report, information disclosure file in the about Fund financial report, information timely for review review and issued views, in Fund annual report and half annual report in the issued managed people report, on fund managed sector head changes, major matters released temporary announcement.

    21st Fund Trustees should be in accordance with the Fund contract and the custody agreement, development of investment fund supervision standards and monitoring process, after the contract of the Fund managed by the investment scope of the Fund, investment, investment style, investment restrictions, related party transactions, and strict supervision, notify the Fund Manager compliance risks. When issued but has not been found fund managers execute investment instructions or investment directives already in force violate laws, administrative regulations and other related regulations, or the Fund contract, shall notify the Fund Manager shall perform the procedures, and report to the China Securities Regulatory Commission, follow-up to continuously follow up with fund managers, urged fund managers to perform their disclosure obligations.

    Fund Manager of the illegal credit to fund property damage caused or the Fund share holders, Fund Trustees should oblige managers compensation in a timely manner.

    22nd managed funds by Fund Trustees should fulfil their legal regulations relating to income distribution, Fund contracts agreed to regularly review the situation, found illegal lack of income distribution of the Fund, shall notify the Fund Manager, and report to the CSRC.

    Article 23rd switch operation, replace the need for funds such as fund managers share holder of matters for consideration by the General Assembly, custodian of the Fund shall cooperate with the Fund Manager called the Fund share holders General Assembly; the Fund Manager was not convened as required or is unable to call, Fund custodians shall convene the Fund share holders pursuant to the provisions of the General Assembly, and shall comply with disclosure and reporting obligations.

    24th the Fund trustee in obtain funds managed, after qualifying no absence of Fund custody business for a long time; in a fund managed in the course of business shall not be unfair competition, must not use illegal means to corner the market, is not inconsistent with Fund custody agreement some or all managed fund assets managed is entrusted.

    25th trustee shall, in accordance with market principles, considering the Fund size, product categories, content, business factors such as ease of handling, determined in consultation with fund managers Fund custodian fee calculated on ways and means.

    Fund custody cost calculation mode and calculation method should be in the Fund contract and fund prospectus explicitly listed in.

    The fourth chapter hosting business internal control

    26th Fund Trustees should be in accordance with relevant laws and regulations, for Fund custody business to establish scientific and reasonable, strict control, running and efficient internal control system, keep the hosting business sound and effective internal control system.

    Fund Trustees shall annually employ accounting firm with securities business qualifications, or by the custodian organization of internal audit departments, funds managed legal services and value-added services of internal control system and the implementation, review and appraisal, issued by the evaluation report.

    27th Fund custodian system of dealing with emergency plans should be established, to seriously affect the Fund share holders interests, may trigger a systemic risk or seriously affect social stability in emergencies, in accordance with the plan properly.

    28th Fund Trustees should be improving the personnel management system, improving information management and security system, strengthen Fund custody Department practitioners practice and management of investment funds and other related activities.

    Fund custody Department employees shall not use unpublished information for yourself or the interests of others.

    29th Fund Trustees should be based on the managed business development and risk control needs, and constantly improve the hosting business information technology systems, adequate hosting business, and normative responsibilities, strengthening vocational training, guarantee the quality of hosting service.

    30th Fund trustee he shall take measures to ensure the Fund custodian and fund sales business independent of each other, to protect the integrity and independence of the Fund assets.

    31st Fund managed according to business development needs, in accordance with the laws and regulations and Fund custody agreement entrusted eligible foreign assets managed overseas asset custody business, foreign assets, custodians should be due diligence to develop selection criteria and procedures, sound business risk management and emergency handling system, strengthen supervision and constraint on the foreign assets of the custodian.

    Article 32nd funds managed outside the statutory trust responsibilities to carry out Fund of value-added services such as outsourcing, should set up a special team to work with business systems, and original Fund custody business team to establish the necessary operational separation between, and effectively guard against potential conflicts of interest.

    Fifth regulatory and legal liability

    33rd when the applicant eligibility criteria for Fund managed to conceal relevant information or provide false materials, the China Securities Regulatory Commission, China Banking Regulatory Commission shall not accept or not approved, and give a warning the applicant eligibility criteria for Fund custody again in 3 years. Applicants to cheat, and bribery, not due means made Fund managed qualification of, China SFC business China silver prison will canceled Fund managed qualification, give warning, and fine, by China SFC cancellation Fund managed business license; China silver prison will can difference different case, ordered applicants on directly is responsible for of competent personnel and other directly responsibility personnel give disciplinary, or on its give warning, and fine, or ban its must term until lifelong engaged in banking work

    Applicant eligibility criteria for Fund custody again in 3 years; suspect transferred to the judicial organs according to law, be held criminally responsible.

    34th article not made Fund managed qualification unauthorized engaged in fund managed business of, ordered stop, confiscated illegal proceeds, and at illegal proceeds 1 time times above five times times following fine; no illegal proceeds or illegal proceeds insufficient 1 million yuan of, and at 100,000 yuan above 1 million Yuan following fine; on directly is responsible for of competent personnel and other directly responsibility personnel give warning, and at 30,000 yuan above 300,000 yuan following fine.

    35th custodian shall, according to the China Securities Regulatory Commission requirements, carry out the following submission of information obligations:

    (A) the investment operations of the Fund oversight reports;

    (B) the Fund custody business reports;

    (C) funds managed are the annual assessment of internal control;

    (D) the CSRC based on prudent regulatory principles required of other materials.

    36th when the trustee of any of the following circumstances shall be from the date it occurred within the 5th report to the CSRC:

    (A) significant changes in the custody Department of the Fund set;

    (B) the name of the custodian or its custodian departments, residence is changed;

    (C) the custodian sector senior management changes;

    (D) the custodian and Fund custody Department senior manager subject to criminal or administrative penalties, or the regulated institutions, judicial organs investigation;

    (V) major litigation or arbitration involving the custody business;

    (Vi) other significant matters associated with Fund custody business.

    37th CSRC based on daily monitoring, Fund custodian departments custodian of the Fund conducted on-site inspections, and to take the following measures:

    (A) requests and check related files, minutes of meetings, reports, documents, and other information, check out, copy, and check the documents relating to the matter;

    (B) asked related staff and request comment on matters relating to inspection;

    (C) check Fund custodian system;

    (D) other measures prescribed by the CSRC. After the China Securities Regulatory Commission conducting on-site inspection shall be issued by the custodian to be checked check conclusions.

    Fund Trustees and related personnel shall cooperate with the China Securities Regulatory Commission conducting checks shall not be refused for any reason, delay in providing related materials, or provide false, inaccurate, incomplete information.

    Article 38th Fund Trustees in a fund managed in the course of business in contravention of this regulation, the CSRC shall order the rectification, rectification may be suspended during the period of its new Fund custody business; for Fund custody business executives directly responsible and other persons directly responsible can take administrative controls such as regulatory talks or issue a letter of warning.

    39th for Fund custodians of one of the following circumstances, the China Securities Regulatory Commission, China Banking Regulatory Commission can cancel the qualification of its funds managed according to law, shall be subject to penalties; directly responsible and other persons directly responsible, the China Securities Regulatory Commission shall be subject to a fine, may be suspended or revoked professional qualifications for the Fund, the China Banking Regulatory Commission may be banned up to a certain period life engaged in banking:

    (A) the absence of Fund custody business for 3 years in a row;

    (B) not through the acceptance of corrective action within a specified time;

    (C) violation of laws and regulations, and in serious cases;

    (D) other circumstances as stipulated by laws and regulations.

    The sixth chapter supplementary articles

    40th herein applies to legal persons in the territory of commercial banks and other financial institutions legally established in the territory.

    41st of non-bank financial institutions eligibility criteria for Fund custody conditions and procedure prescribed separately by the China Securities Regulatory Commission. 42nd article of the rules as of April 2, 2013. November 29, 2004, the China Securities Regulatory Commission, China Banking Regulatory Commission jointly announced the management measures of qualifications of securities investment fund custodian repealed simultaneously.