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According to the laws and regulations of fund management in China, when a private equity fund is established, it is necessary to determine the fund custodian, and safely isolate the investors' funds in the form of fund custody to prevent moral hazard. Under normal circumstances, commercial banks are the custodians of private equity funds, and only when certain conditions are met can they act as agents for this business. So what are the qualifications of private equity custodian banks? The following small series has compiled relevant knowledge, let's take a look.

1. Do private equity funds have to be managed?

Fund custody means that commercial banks accept the entrustment of fund managers, represent the interests of fund holders, keep fund assets and supervise the daily investment operation of fund managers. Fund custodians independently open fund asset accounts, carry out liquidation and delivery according to the instructions of the administrator, keep fund assets, supervise the fund business operation within the scope stipulated in relevant systems and fund contracts, and charge a certain custody fee.

Private placement funds shall be managed by fund custodians. If the fund contract stipulates that private equity funds shall not be managed, the institutional measures and dispute settlement mechanism for ensuring the property safety of private equity funds shall be clearly defined in the fund contract.

Two. What conditions should a commercial bank have to start custody business?

(a) there is a special department or institution responsible for the custody business;

(two) there are enough full-time personnel familiar with the custody business;

(3) Having the conditions for keeping the entrusted property;

(4) Having a fixed place and software and hardware facilities to meet business needs;

(5) Having a perfect custody business system, including network system, application system, security protection system and data backup system;

(6) Having the ability of property custody, accounting, asset evaluation, fund settlement, investment supervision and corresponding application systems;

(seven) to establish the corresponding custody business management system and sound risk control system, including custody business management guidelines, internal audit monitoring system, risk control system, job responsibilities and operating procedures, practitioners' code of conduct, etc. ;

(eight) other conditions stipulated by laws and regulations.

3. What are the main responsibilities of the fund custodian?

(1) Safely keeping all assets of the fund;

(2) Implementing the investment instructions of the fund manager and handling fund transactions in the name of the fund;

(3) Supervise the investment operation of the fund manager, and if it is found that the investment instruction of the fund manager is illegal, it will not be implemented and will be reported to the China Securities Regulatory Commission;

(4) Examining the fund net asset value and fund price calculated by the fund manager;

(5) Keeping the accounting books and records of the Fund for more than 65,438+05 years;

(six) to issue a fund performance report, provide the fund custody, and report to the China Securities Regulatory Commission and the People's Bank of China;

(seven) other duties stipulated in the articles of association of the fund or the fund contract and custody agreement.

It can be seen that commercial banks, as custodians of private equity funds, have great responsibilities, and should regularly review the accounts of private equity funds to ensure the safety of investors' funds. This is also the case. China has higher requirements for the qualification of private equity fund custodian banks, and has certain requirements for hardware and software. Custody banks will sign custody agreements with private equity funds and charge a certain custody fee.

Extended reading:

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