The fund custody company is an institution that keeps and supervises the fund property in the process of fund operation. According to the Interim Measures for the Supervision and Administration of Private Equity Funds, private equity service institutions such as private equity fund managers, private equity fund custodians and private equity fund sales organizations and their employees shall not occupy or misappropriate fund property.

Take a case published by China Securities Regulatory Commission as an example. As a custodian company, a securities company signed a custody agreement with an investment company. The company tampered with the fund contract and replaced the original fund custody account page with its own bank account page. During the signing of the contract, the investor found no abnormality and made a payment to the tampered fund-raising account. The custody company shall report the case to the public security organ and report the situation to the local securities regulatory department. With the intervention of the regulatory authorities, the illegal funds were recovered.