On The Improvement Of The Administrative Regulatory Regime For China's Trust Industry

As a property management system, trust takes assets as the core and entrustment as the measure, thus, it has both the function of property management and the function of property transference which fit into modern society's tendency like division of labor and increase of individual property. It is widely used in many areas like property management, will execution and commonweal activity result in huge effect to social activities and economy development in the countries which have established trust system, in one word, trust is an important financial tool. From infrastructure, investment and financing of big project construction to merger, recomposing and system change consultant of enterprise, even to lease and guarantee, trust company provides complete financial services nearly covering all financial and investment bank operation except bank, securities broker and insurance, featured in free agility. In developed countries, trust has developed to one of the four mainstay industries in finance industry along with bank, securities and insurance. Such phenomenon mostly originates in trust system's special legal structure of division of ownership and benefit, and abundant connotation, bouncy technique and diverse form.Trust is a kind of property system arrangement under common law system, while in recent years, countries of civil law system enacted many regulations on trust. Introducing trust system is not only the requirement of financial innovation, but also the need of economic organization system innovation. China has practiced trust system for nearly a century. Since the reform and opening to the outside in 1978, trust industry in China developed quickly, it now plays an important role in financial industry. The practice has proved that, trust investment industry exert its action in making up the deficiency of bank credit, mobilizing social idle funds, widening investment channel, perfecting financial system, promoting market economy development, etc, meanwhile, some prominent problems are existed, such as ambiguity of status and developing direction of trust operation institution; ambiguity of trust operation scope, nonstandard operation; faultiness of investment rules,illogicality of asset structure, lack of ability for risk control, etc. In certain extent, some problems happen in trust operation institution affect or even impact normal financial order. The reasons for such problems are the lag of legislation for trust, which makes trust activities, operation and development of trust stayed in the occasion which no law can be based on for a long time, and necessary legal regulations and ensure are absent. This thus lead to the ineffectiveness of outside supervision. But the more important is country's lack of recognition towards the concept of trust and the so caused"dislocation"in development of trustTo ensure ordered and sound development of trust industry in China, it is necessary to establish a scientific and effective administrative supervision system. The text starts with meaning and historical origin of trust, on the base of detailed analysis on essentiality and functions of trust, deeply sets forth the development and defect of legal system which acts as the foundation of current trust administrative supervision in China, furthermore, mainly discusses the effect of absence of legal system towards administrative supervision, analyses supervision on information disclosure of trust company which is the keystone of supervision, introduce the information's effect towards trust market and current situation of supervision on trust information in China. Finally, combining advanced legislation experience and administrative supervision modes in foreign finance developed countries, the author raises the advises to perfect the system of trust administrative supervision in the hope of building a royal road early for guiding the Chinese trust industry developing soundly.