Investors In Asset Securitization Legal Protection

Asset securitization is originated in the seventies of the 20th century as a U.S. financial innovation tools. Because of its unique transaction structure, and become a fastest growing mode of financing. It is realized through the transfer of cash the way claims to the receivables sold to special purpose entities by its transformation into free circulation of securities, then the financial institutions, companies and capital markets, even as an organic whole, so many companies involved in capital Market in the past, led to rapid economic development.Implementation of asset securitization in China is significant. Although in the current breakthrough in China's economic development progress, but lagging behind the development of capital market does, type of financial investment products limited nature of the main reasons leading to this phenomenon. Therefore, financial research and use of innovative tools for long-term development of China's economy is significant. From the experience of America and other countries. ABS will deepen the reforms of financial system, activate the existing assets; keep away and cut down the financial risk; create new ways of financing for corporations and improve the frame of financial system. Because so many subjects such as originations debtor, credit enhancement institution, credit rating institution, service provider and investment banker will involve in the process of ABS, it need to be regulated and protected by the legal system.In the United States , asset securitization development of the theory and practice are very mature and the other hand, China's asset securitization theory and practical operation is still relatively backward.So at the year of 2005,Trial Administration Measures on securitization of Credit Assets is issued by People'S Bank of China(PBOC)and China Banking Regulatory Commission(CBRC),later a series of regulations such as Administration and Supervision of Pilot Projects for the Securitization of Credit Assets by Financial Institutions have been issued and provided the 1egal supports for ABS with the Company Law and the Security Law.Body mainly from the perspective of investors, asset securitization in the analysis of innovation on the basis of the legal system, with emphasis on asset securitization investors and investor protection risks faced by the system design. At the same time the use of comparative methods to analyse China's current legal system related to the lack of and inadequate for the development of asset securitization in the plight of China; and tried to ask questions, analyze problems, based on the finding of securities in line with China's national conditions of the road.Paper is divided into three chapters. The first chapter provides a brief description of the legal implications of the securitization of assets, analysis of the law may be characteristics of securitized assets, introduced the main asset securitization transaction structure.The second chapter, compared with the traditional perspective of finance, general analysis of the asset securitization investment risk in general and special investment risks.The third chapter focuses on the analysis of asset securitization design innovative legal system and explain how these systems to maximize the protection of investors, investment security, reflecting the security value of the asset securitization. And put forward relevant legislative proposal, put forward by the flow of financial innovation inherent in the concept of legal relations system should be freed, the formation of highly technical and specialized independent gauge group.