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I. Product Overview
Custody services for occupational annuity funds refer to the services provided by ICBC as the custodian, including conducting assets sweep custody for the occupational annuity fund and providing asset custody, capital clearing, asset valuation, accounting, investment supervision, and information disclosure, in accordance with laws and regulations and custody contracts.
The occupational annuity fund custody system refers to the mechanism for mutual supervision between managers, which was built by ICBC through the separation of ownership, use rights and supervisory rights for occupational annuity fund assets, to ensure the safety, independence and integrity of occupational annuity fund assets; the custody system can effectively reduce the operating costs of the occupational annuity fund and improve the operational efficiency; the custody institution of the occupational annuity fund is selected from the institutions that have the appropriate qualifications for the custody of enterprise annuity fund.
II. Target Customers
Public institutions and their staff members engaged in the occupational annuity plan; occupational annuity agents and social security agencies; occupational annuity trustees.
III. Scope of Services
1.Asset custody: Set separate accounts for independent safekeeping, to ensure the safety, independence and integrity of occupational annuity fund.
2.Contribution sweep: Provide occupational annuity funds with convenient, safe and fast contribution sweep services.
3.Capital clearing: Handle the clearing of occupational annuity fund and delivery & collection of securities according to relevant contracts and the instructions of the party concerned.
4.Asset valuation and accounting: Conduct accounting and asset valuation for occupational annuity fund, and check the results with investment managers to reflect the net asset value and change of funds.
5.Investment supervision: Supervise the investment and operation of occupational annuity fund assets according to relevant national laws and regulations as well as custody contracts, and if any problems are found, promptly report to regulatory authorities and trustees.
6.Payment of benefits: Make timely and accurate payment of annuity benefits to employees across the country in centralized batch and point-to-point manner according to the instructions of trustees.
7.Information disclosure: Provide financial statements, custody reports, major issue reports and other tailored reports for enterprise annuity fund on a regular basis.
8.Safekeeping of information: Keep written documents, investment instructions, transaction records, accounting documents, back-up data, accounting statements and other information related to the transfer of information between the trustee and the investment manager in accordance with laws and regulations and policies.
9.Value-added service: Provide various value-added services such as performance evaluation and bond default warning according to the needs of customers.
IV. Product Advantages
1.Fully licensed pension custody business
ICBC was one of the earliest institution to obtain the qualification for annuity custody and account management in 2005 and obtained the qualification for trustee and investment management in 2007, with the full license of annuity fund management service. This shows that the Bank is the pioneer and frontrunner in putting annuity fund into practice. In custody business, ICBC is one of the few commercial banks that is also fully licensed to provide custody services for the four major funds, namely the national social security fund, the basic pension insurance fund, the enterprise annuity fund, and the occupational annuity fund. The Bank is a trustworthy pension custodian bank with strong brand advantages and industry influence.
2.Absolute leading advantage in annuity custody market
ICBC is the largest custodian bank in China and the largest custodian bank for annuity funds. The custody shares of the Bank’s enterprise annuity funds and occupational annuity funds have consistently ranked first in the market. ICBC’s custody services for occupational annuity fund involve 32 coordinated districts, and its customers in terms of the custody of enterprise annuity funds cover more than 20 sectors such as petroleum, electricity, coal, tobacco, finance, information and communication, iron and steel, automobile, machinery, civil aviation, publishing and distribution, IT, construction, commerce and trade and pharmaceuticals, with more than 20,000 enterprises of various natures, including state-owned, collective, private, and foreign-funded enterprises.
3.Professional custody service team for annuity
As the earliest institution in China to establish an annuity system and provide custody services for annuity funds to the outside world, ICBC has always been committed to building a high-level and professional annuity service team, with sufficient annuity fund custody professionals, serving as members of industry expert groups. The Bank thus serves as a major participant in the formulation of annuity industry standards.
4.Leading custody service system in the market
ICBC is the only custodian bank in Chinese mainland that constantly adheres to independent R&D of custody business systems and has always attached great importance to the input of information technology into the custody business. In recent years, the science and technology R&D investment in the custody business line has been increasing at a rate of about 10% every year. With the support of the system, a number of custody business processing procedures by ICBC have become industry standards and the Bank won the annual Banking Technological Development Award from PBC for multiple times. The ecological construction project of intelligent banking (ECOS) that was released in 2019 and of which the intelligent custody system is an important part, was awarded the only Special Award for 2020 Fintech Development of PBC. In March 2021, ICBC released ICBC Intelligent Custody System, opening the 2.0 era of building custody system in the domestic asset management industry, comprehensively improving ICBC’s comprehensive custodian service capability through 5 platforms and 3 levels driven by science and technology.
5.All-around investment supervision
In accordance with laws and regulations as well as contractual requirements, ICBC carries out a whole-process supervision of investment before, during and after the transaction. Ex-ante supervision is made by the signing of agreements and procedure control before the transaction; in-event supervision is made by reviewing the instructions that can be effectively controlled one by one; ex-post supervision is made for the instructions that have already come into effect after the transaction has been confirmed and valued, to safeguard the interests of the trustors.
6.The most secure business disaster recovery system among peers
ICBC has a complete business disaster recovery management and information system emergency response mechanism, with a combination of “at-home processing” and “off-site switching” emergency response programs that are ahead of its peers and comparable to those of major international custodian banks. This has enabled the Bank to successfully cope with the severe tests brought about by the flooding in Henan Province and the control of epidemics in Shenzhen, Shanghai, Beijing and other regions, and to ensure the continuity and security of its custody services through science and technology.
7.The most awarded custodian bank in China
Since 2004, ICBC has won 102 custodian bank awards selected by authoritative financial media at home and abroad, such as the Asian Banker, Global Custodian, Securities Times, Shanghai Securities News, making it the most honored domestic custodian bank, which fully reflects how ICBC is praised by customers, industry experts and authoritative institutions in custodian business.
V. Business Guide
1.Business contact: Social security agencies, occupational annuity agents and trustees may contact local branches of ICBC;
2.Signing of agreements: Social security agencies sign the Custody Contract for the Sweep Account of Occupational Annuity Fund with ICBC, occupational annuity agents sign the Trustee Management Contract for Occupational Annuity Fund with trustees, and trustees sign the Custody Contract for Occupational Annuity Fund with ICBC;
3.Opening of account: Fund custody accounts and securities accounts will be opened as required by regulatory authorities;
4.Custody operation: Services including asset custody, annuity fund sweep, benefit payment, accounting, asset valuation, capital clearing, and performance evaluation will be provided according to custody contracts. The investment and operation of occupational annuity fund will be supervised, and the relevant reports will be offered to the regulator and trustee regularly.
VI. Contact Information
If you would like to apply for any service, please contact your local branch or the Social Security Fund Division of Asset Custody Department under the Head Office of ICBC:
Contact: Tang Yun
Tel.: (8610) 66104969
E-MAIL: yun.tang@icbc.com.cn
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