Research On Legal Rules Of Risk And Return Of Structured Products Of Commercial Banks

As a fresh wealth management product which combined with fixed income investment and derivative transaction, structured products have drawn many investors attention. However, they are severely affected by the venture joint action when the linked market fluctuate non-normally because of the imperfect clause design before sale, stop-loss mechanism void as well as regulatory flaw after sale. Therefore it's necessary to analyze and improve the internal system of structured products at present.On the base of summarizing legal characters of structured products, the thesis set forth the benefit balance between structured products investors and banks under the specific risk and return distribution model by combination of legal theory and econometrics method. Focus on the latest cases in China and compare the serial regulations with other countries'to further discuss typical legal issues with a view to promoting the improvement of legal regulatory system of China's structured product market. The thesis consists of five parts.The introduction part starts with the background of topic and summarizes research circumstance such as definition of the legal nature, income factors and legal risk associated. Put forward the logical structure and innovative points in the thesis.The second part focuses on the analysis on legal relationship during investment process of the structured products with a conclusion that the floating returns can be regarded as generalized trust. In addition, there is an analysis on the typical rights and obligations of the parties.The third part begins with the statement of the development situation and trend of structured products in China. On the base of financial data processing, this part makes a regression analysis on the influencing factors of structured products which were nonlinear overall. With regard of the influence on the obligation rules of commercial banks, the thesis figures out legal standard in the end.The fourth part discusses the typical legal rules derive from the HSBC case and the Standard Bank case, the application rules of cooling-off period system, rules of information disclosure responsibility, rules of provision design in the contract and the restriction rules when products return was unpaid for instance. Furthermore, according to the updating regulatory documents and issued by MAS, HKMA and FAS, this part tries to make suggestions for investors against extra risks due to information flaw and contract terms trap.The fifth part is closely connected with the fourth part. For the rules raised above, a comparison among the serial regulations issued by China Banking Regulatory Commission is made in this part. Effective measures and constructive programs adopted by foreign regulatory authorities can be considered with a reference value in discussion of the scope of rules application, market access as well as regulatory approach. Finally in the hope of having some benefit to legal norms development of structured products.