The Duty Of Care Of Trustees In The Collection Of Securities Investment Trust

Based on the context of the Collection of Securities Investment Trust, this article revolves around the duty of care of trustee, deals with issues and the legal significance of the application of rules in the management of trust investments. This article extensively adopts approaches of abstract generalization, jurisprudential exploration, comparative and economic analysis, which follows the structure of the introduction, main body and conclusion and falls into six parts.The introduction briefly covers the aspects of the characters, evolution and research methods. Then it poses questions:if there's a link between investors suffering losses and trustee whose breach of his duty of care?The first chapter is basic research, which outlines the regulation of trustees in China. The section analysis the legal relations of the Collection of Securities Investment Trust. And also introduce the norms of the trustees in the current contents.As it mentioned, duty of care is the main content of fiduciary duty, rooted in Anglo-American trust law. Therefore, before we discuss the duty of care of trustees of the Collection of Securities Investment Trust, we must deals with the evolutionary process of the duty of the care as the legal standard in American Commercial Trust Law:from legal lists statutes, prudent man rule, and prudent investor rule, which underwent complexed processes. This chapter frigates the Virtual text of the prudent investor rule under the Restatement (Third) of Trusts and Uniform Prudent Investor Act. In addition, we can find out the rolling relation between law and market. The legislation is closely related to the economic situation. The third part inspected on the outside territory trust bailee discretely invest duty system, successfully inspected and search in discrete investment duty system, which combines some rules, cases and principles. This part provides the idea of how to construct the system on the trustee's duty of care in China. First, the portfolio investment rules require trustees to allocate assets and make some restrictions on investment ratio. Second is the shingle theory. Trustees must consider the specific situation of their potential customs, make the-risk tips and have access to information. Third, principal safety rules, require trustees ensure the safety of the principal firstly. Then he can pursuit adequate return. Fourth, we focuses on the discussion that whether Collection of Securities Investment Trust can invest in derivatives. In my view, trustees should be allowed to invest in derivatives in the exchange under the premise of trust.Chapter 4 discusses the responsibilities and the safe harbor of the breach of the duty. After the brief introduction to the principles of attribution, the author proposed a bold system, which transplant some successful mechanism in company law to the trust law, specifically to the Collection of Securities Investment Trust. This article attempts to build the dialogue between the two branches of law, making a logical framework for transplanting the business judgment rule.Chapter 5 makes conclusion of the foregoing analysis, discussion. The author looks forward to the establishment of the duty of care of the trustees in Collection of Securities Investment Trust.