I. Qualification of the custodian bank

Due to the special role of fund custodian in the safe operation of fund assets, the laws and regulations of fund supervision in various countries (regions) have strict requirements on the qualifications of fund custodian, and fund custodian is usually held by professional financial institutions such as commercial banks and trust companies with certain conditions.

Emerging markets usually set strict qualification requirements for custodians, mostly financial institutions such as banks that meet certain capital conditions, which are reviewed and approved by regulatory agencies.

The basic duty of asset management institutions in the operation of social security funds is to manage and use fund assets, and the basic duty of custodian banks is to trust fund assets.