1. What is fund custody?
Fund custody, also known as "third-party depository", is called "third-party depository of customer transaction settlement funds". It mainly refers to the mechanism that investors hand over the settlement funds used by the exchange to a third-party depository for management. The third-party depository institutions referred to here are mainly commercial banks with third-party depository qualifications. Fund custody is common in trading activities such as securities, futures and real estate. For example, in securities trading, the entrusted depository bank will be responsible for the deposit and withdrawal of customers' funds and the delivery of funds in accordance with the requirements of laws and regulations, but other securities trading businesses will not be affected.
2. Why do you want to implement fund custody?
? Fund custody follows the principle of "securities firms manage securities and banks manage funds", and strictly separates investors' securities trading accounts from those used for fund custody. In this mode, the securities company (i.e. the securities broker) is responsible for clients' securities trading and other matters; Depository banks are responsible for providing access services for transaction settlement funds and transferring funds between fund custody accounts and securities trading accounts. In the past, the funds used by investors for securities trading and settlement were directly managed by securities companies, so there have also been cases in which securities companies misappropriated funds or even donated money to escape. In order to prevent such incidents from happening again, the securities industry introduced the fund custody system. This not only protects the interests of investors, but also maintains the industry image of securities companies, making the operation and development of the securities industry more stable and orderly.
3. Benefits of fund custody
(1) Funds are safer. In the past, investors' funds were deposited by securities companies, and misappropriation occurred from time to time. After the implementation of the fund custody system, investors' fund security has been double guaranteed by securities companies and banks, and the security has been greatly improved.
(2) Access is more worry-free. Investors can deposit and withdraw funds through bank counters, telephone banking, online banking, etc., and can also transfer funds between fund custody accounts and securities trading accounts.
(3) The service is more intimate. Investors have become customers of securities companies and banks. While continuing to accept the investment and financial services provided by the original securities company, you can also enjoy various comprehensive financial services provided by banks.
(4) The transaction settlement funds shall be uniformly deposited and managed by commercial banks, which is conducive to the supervision and management of illegal funds entering the securities market by the state.
4. The characteristics of fund custody
? (1) Customer funds closing operation. Securities companies transfer customers' fund deposit and withdrawal functions to banks, and all deposit and withdrawal behaviors are initiated by customers through bank-securities transfer, which greatly reduces the risks of misappropriation, money laundering and cash withdrawal of customers' funds.
(2) Check the total score of the depository bank. Through the management account opened for customers, banks can master the detailed accounts of customer funds and check them with the general ledger of customer funds of securities companies, thus preventing securities companies from tampering with the general ledger to some extent.
(3) Find another way to inquire about the reconciliation mechanism. Customers can use the inquiry means and reconciliation mechanism provided by depository banks and securities companies to compare the consistency of fund data between banks and securities companies and protect the safety of funds.
(4) All-round customer fund supervision system. Securities companies, depository banks, customers and regulatory agencies * * * form an all-round customer fund supervision system to ensure the safety of customer funds.
Hope to adopt