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Custody Service for Occupational Annuity Fund

I. Product Overview
Custody service for occupational annuity funds refer to the service that ICBC, entrusted by the consignee of occupational annuity funds, safely keep the occupational annuity fund assets, and conduct clearing of annuity fund assets, delivery & collection of securities, accounting, asset valuation and investment supervision.
The custody policy of occupational annuity funds effectively establishes the mechanism for mutual supervision between managers through separation of ownership, right to use and right of supervision, in an attempt to ensure the safety, independence and integrity of the occupational annuity fund assets. The custody policy can effectively reduce the operating cost, boost the operational efficiency, and increase the income of the occupational annuity funds.
The custody institutions for occupational annuity funds can be chosen from the institutions with corresponding management qualification of managing corporate annuity funds. In August 2005, ICBC became one of the first batch of banks which obtained the qualification of corporate annuity fund custodian (Qualification No.: 0017) after the review and authentication of the Ministry of Human Resources and Social Security. Such qualification was renewed in 2008, 2011 and 2014 (Qualification No.: 0138). So far, ICBC has occupied about 40% market share in terms of custody service for corporate annuity fund, becoming the largest custodian bank for such service in China.

II. Target Customers
Public institutions and their staff participating in occupational annuity scheme; social security institutions; occupational annuity consignees.

III. Scope of Services
Collection and payment: providing services of collection of occupational annuity funds and payment of remuneration.
Asset custody: opening separate accounts and conducting independent custody to ensure that security, independence and integrity of occupational annuity funds.
Fund clearing: completing fund clearing and delivery & collection of occupational annuity funds in accordance with related contracts and interested parties' instruction.
Accounting and asset valuation: conducting accounting and asset valuation of occupational annuity funds and check with the investment managers.
Investment supervision: supervising the investment operations of occupational annuity fund assets pursuant to relevant national laws and regulations and the provisions of the custody contract, reporting the problems identified to the regulatory authorities and the consignees in a timely manner.
Information disclosure: submitting the report on custody of occupational annuity funds and financial statements to the consignees on a regular basis.
Information keeping: keeping records, account books, statements and other related materials in connection with custody of occupational annuity funds in accordance with national rules and regulations.
Other services: providing other custody services as requested by clients and consignees.

IV. Advantages
i. Rich experience in custody services
ICBC was the first domestic custodian bank for corporate annuity fund. In December 2001, it was the first one to obtain the qualification as a custodian bank for corporate annuity fund accredited by the People’s Bank of China. In the following year, the bank provided custody service for social security annuity funds in Shanghai and Shenzhen.
ICBC was one of the first batch of domestic custodian banks approved by the Ministry of Human Resources and Social Security. In August 2005, the bank obtained the qualification of custodian bank for corporate annuity fund accredited by the Ministry of Human Resources and Social Security, thus possessing the statutory conditions for annuity fund custody.
ICBC was the first domestic custodian bank for single standardized market annuity fund. In June 2006, it was the first one to provide custody service for single standardized market annuity fund in China.
ICBC was the largest domestic custodian bank for corporate annuity fund. Its market share in terms of corporate annuity fund custody has been maintained at about 40%.
ii. Localized custody services
With more than 17,000 domestic branches and sub-branches, ICBC has developed a custody service network throughout the country. With respect to corporate annuity fund collection and compensation payment, ICBC’s outlets, Internet banking and ATMs can provide corporate and personal customers with the most convenient and efficient payment, compensation inquiry and collection services.
iii. All-around transaction supervision
ICBC was the first one in the banking industry to establish a division called Supervision and Risk Management Division under the Asset Custody Department which would specially supervise various investments. It has developed a powerful transaction supervision system, which consists of more than 400 regular indicators of five categories. Besides, individualized indicators can be tailor-made to meet customers’ diverse requirements. Through the specialized system, practitioners could conduct comprehensive supervision on corporate annuity fund investment, thus protecting the safety of corporate annuity fund assets to the maximum extent.
iv. Performance analysis based on big data
ICBC, leveraging on its largest market share in corporate annuity business in the banking industry, provides annuity customers with a full package of value-added services including pension product investment information and trading service, evaluation of asset manager’s style and selection of asset manager, internal indicator customization and consulting service on performance assessment benchmark, consulting on annuities under trusteeship, and outsourcing of information data and analysis tools, in order to help customers make decisions on entrusted investment and value preservation/enhancement of annuity assets.
v. Advanced Internet banking services
Customers can handle businesses such as file transfer, report inquiry, equity information inquiry, account details inquiry, net value reconciliation, research report delivery, transfer order management and customer service, by self-help.

V. Business Guide
i. Business contact: enterprises and trustees can contact local branches or sub-branches of ICBC.
ii. Signing of agreement: the Contract on Corporate Annuity Scheme Custody will be signed based on sufficient communication between the bank and customers;
iii. Opening of account: fund custody accounts and securities accounts will be opened as required by regulators;
iv. Custody operation: According to custody contract, ICBC provides services as asset safekeeping, annuity fund pooling, compensation payment, accounting, asset valuation, clearing and delivery and performance appraisal, supervises the investment of occupational annuity fund and provides custody report to the regulator and custodian trustee on a regular basis.

VI. Contact Information
If you would like to apply for any service, please contact local branch or sub-branch of ICBC or the Entrusted Asset Division I of Asset Custody Department under the Head Office of ICBC:
Liaison: Zhuang Wei, Wang Tao
Tel.: (8610)66105766, 66105772
Fax: (8610)66105769
E-MAIL: tao.wang.zctg@icbc.com.cn