Recently, ICBC announced its asset custody service successfully ran through SAS70 internal audit international accreditation. ICBC thus became the first custody bank in China to introduce and pass SAS70 international accreditation on special project.
SAS70 is instituted by American Institution of Certified Public Accountant (AICPA). It is an auditing standard of internal control, security protection and audit supervisory measures for financial institutions in providing services to customers. Currently, SAS70 auditing standard have been widely recognized by international financial services organizations, in particular, those engaged in asset management and custody. Large international custody banks and asset management companies all invite accounting firms to run SAS70 third party external audit.
In 2005, ICBC officially engaged Ernst & Young to conduct validity testing and evaluation on the risk management and internal control of its asset custody service. During the implementation of SAS70 auditing, Ernst & Young performed differential analysis on all steps and flows involved in assets custody, such as asset depository, custody account management, transaction instruction processing, accounting audit, clearing, asset valuation, investment surveillance and financial reporting. Multiple rounds of strict tests were conducted as well. ICBC successfully got the clean SAS70 audit report from Ernst & Young finally after strict auditing. This indicated that independent and fair third party fully recognized the completeness and effectiveness of risk management and internal control in the operation flow of ICBC custody service.
Related person-in-charge from ICBC stated that in recent years, ICBC shorten the gap between its asset custody services and the international standard through rigorous learning the advanced management experiences and practices from large international custody banks. Internal management, risk control and service standard of ICBC assets custody services were improved. Institutional customers as securities investment fund companies, insurance companies, QFII and corporate annuity can all enjoy ICBC one-stop quality custody services. Investors' interests were fully protected.
Being one of the first commercial banks in China to open custody service for securities investment fund, ICBC Asset Custody Department adhered to the principle of "sincere and trustworthy, diligent and responsible", strictly fulfilled the duty and obligations of being an asset custodian since inception in February 1998. Outstanding results were achieved by offering secure, highly-effective and professional custody services to all fund allocations holders and numerous asset management organizations through stringent, scientific risk management and internal control scheme, standardized business management model, complete service system and strong marketing capacity. At present, 54 securities investment funds and a scale of RMB 200 billion of various types of assets are under ICBC custody. Until now, ICBC has a custody service scheme of 13 products under 9 categories, including securities investment fund, trust asset, insurance asset, social security fund, corporate annuity, industrial fund, QFII asset and performance bond. In 2004, ICBC was successively awarded by Asia Money and Global Custodian as "Best Custody Bank in China". ICBC is currently the largest custody bank in China with the most satisfactory variety of custody service products.