Legal Research On The Affiliated Transaction In The Multinational Financial Holding Companies

Being one kind of innovation in financial organizations, the multinational financial holding company has become an important mode for financial institutions to run multi-operation business in the international financial market. Financial holding company is engaged on the synthetical and multi-financial business to achieve the economic of scare and the economic of scope, disperse the risk of single financial business and enhance the stability of the finance conglomerate through logical structure designing. At the same time the holistic especial structure and the various business' admixture, across and superposition should bring the problem of new and holistic unusual risks which be caused by the affiliated transaction under the circumstance of the financial holding company.The affiliated transaction inside the financial holding company is inevitable, because the financial holding company will lose the potential efficiency if the transaction should be denied. Consequently, the supervision of the financial holding company insider affiliated transaction should be identified first. At the same time the self-determination of the supervise organization inside the financial holding company should be attached importance to adequately for the reason that the insider custodian institute can dispose the affiliated transactions flexibly base on the practice when the quantities and the sorts of the transaction take change continually.This article analyses not only the concept of financial holding companies, but also the financial holding company's characteristics and work modes in the angle of law and then make a conclusion combined with the characteristics of the affiliated enterprise.Then this article analyses the basic theory study and some risk about the affiliated transaction inside the financial holding company mostly. This part illuminates the necessary of legal regulating.The present paper lays great stress on the legal regulating about the affiliated transaction under the circumstance of the financial holding company in the international financial market. With respect to introduction and comparison of legal systems on the affiliated transaction under the circumstance of financial holding companies in America, EU, a and other developed countries, this article illuminates the legal regulating about the affiliated transaction under the circumstance of the financial holding company in the international financial market.According to the current circumstance in Chinese financial enterprises, a legislation proposal is finally put forward in order to develop financial holding companies in China on the premise of the framework of separating-operation business of nowadays legal system.