NFRA Releases Measures for the Supervision and Administration of Custody Business of Commercial Banks

The National Financial Regulatory Administration (NFRA) has issued the Measures for the Supervision and Administration of Custody Business of Commercial Banks (for Trial Implementation) (the "Measures"), effective from February 1, 2026.

The Measures, consisting of 49 articles in five chapters, cover general provisions, custody responsibilities, management requirements, supervision and administration, legal liability, and supplementary provisions. The Measures mainly involve: (1) clarifying the concept and basic principles of custody business conducted by commercial banks; (2) detailing the responsibilities to be undertaken by commercial banks for their custody business and strengthening the accountability of custodians; (3) establishing basic management requirements for custody business and improving governance structures; (4) defining the supervisory responsibilities of regulatory authorities and the legal liability associated with the custody business of commercial banks; and (5) clarifying relevant matters such as transitional arrangements. According to the Measures, custody refers to the act of a commercial bank, as an independent third party, to provide asset safekeeping and relevant services for investment portfolios formed by various financial products and special-purpose funds. When conducting custody business, commercial banks shall conform to the principles of good faith, diligence, independence, prudence, and risk isolation, thereby ensuring the independence of custodial assets.



(Source: https://www.nfra.gov.cn/cn/view/pages/governmentDetail.html?docId=1237183&itemId=861&generaltype=1)

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