Financial Holding Group's Related Party Transactions To Regulate The Legal System

As the integration and comprehensive development of international finance, Financial Holding Group has become the leading mode of financial mixed-business management, and also become an effective way of turning "eparate operation" to "multi-operation" in China. The fundamental reason for establishing Financial holding group is using the internal structure of "group mixed, legal segregation" to achieve the coordination effect, thus reducing the operation cost and increasing overall efficiency. The main way to achieve this effect is Transaction. Meanwhile, Financial Holding Group has its two sides.Proper can take advantage of the effect, while the Affiliated Transaction voilating the market rules also brings Financial Holding Group huge risks, and even endanger the security and stability of the financial system. Therefore, making effective legal supervision over the Affiliated Transaction of Financial Holding Group is the key to the risk control of Financial Holding Group.Starting from the Affiliated Transaction shall be the logical starting point and theoretical basis of this paper. The first chapter defines the relevant issues of the Affiliated Transaction. First, define the connotation and extension of the Affiliated Transaction by defining relators and specific forms of Affiliated Transaction. Secondly, analysis the regulating reason of Affiliated Transaction. The main reason is that the conflicts of interest drives relators to abuse power to damage lawful rights and interests of related company and other stakeholders. Finally, briefly reviewe the regulating system of Affiliated Transaction. The current legal system has formed a regulating system based on company law, the securities law, tax law and so on.The second chapter defines and analyzes its particularity. First, define, and analyze its basic characteristics. Secondly, define the Affiliated Transaction of Financial Holding Group and make clear of the concrete object of this study. Finally, from two aspects of the general features and unique features emphatically analyze the particularity of Affiliated Transaction of Financial Holding Group. The third chapter is the key section. Why the Affiliated Transaction of Financial Holding Group should be specially regulated and supervised is discussed in this chapter. This article discusses the issue from two aspects of the special effects produced by Affiliated Transaction of Financial Holding Group and the regulation dilemma of existing legal system. On the one hand, the Affiliated Transaction of Financial Holding Group could trigger some special risks, including more serious conflicts of interest, risk infection, regulatory arbitrage, market monopoly and financial safety net diffusion, etc.; On the other hand, the current regulation system can not guard against and defuse these particular risks very well, which is called regulation predicament. In the conflict of objective realistic demand and shortages system supply, constructing and perfecting the supervision of financial holding group related transactions legal system is necessary.The fourth chapter are the key section for discussing the system construction. In combination with foreign advanced experience in legislation and system design, we should improve and perfect current legal system,and the introduce new foreign effective rules. Firstly, starting from the legislative layer, the special law of Financial Holding Group should be formulated. Secondly, we must establish regulatory principles, including appropriate regulatory principle, independent competition principle, union of inside and outside the principle. At last, we should construct the system from two aspects of the inside regulation and external supervision. Internal regulation rely on securities law, company law and commercial Banks, and perfect company governance system and internal control system; External supervision depends on the special law of Financial Holding Group and other rules in its guidance,and establish and perfect the supervision coordination and cooperation system, capital regulatory system, disclosure, responsibility aggravating system, etc.