CSRC and CBIRC amend custodian admin measures 13 July 2020Beijing Reporter: Rebecca Delaney
Image: Zhu Difeng/Shutterstock
The China Securities Regulatory Commission (CSRC) and the China Bank and Insurance Regulatory Commission (CBIRC) have jointly revised the administrative measures on custodian business for securities investment funds.
Public consultation with government agencies and market entities concluded with the new amendments, which allow Chinese branches of foreign banks to apply for custodian licenses for securities investment funds, based on the financial indicators of the foreign headquarters.
The revised measures aim to improve supervisory requirements over fund custodian businesses by implementing more diversified administrative regulatory measures.
The CSRC and CBIRC also decided to reduce application paperwork processes for fund custodian licenses to optimise application and approval procedures.
In order to ensure singular criteria for market access and regulatory compliance for commercial banks and other financial institutions, the amendments will see the integration of fund custodian regulation of non-bank financial institutions into the administrative measures.
Following the adoption of the revised measures, the CSRC will update the guidelines of administrative licensing for fund custodian business accordingly.
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Image: Zhu Difeng/Shutterstock 