Study On The Legal Matters Of Risk-Remote Mechanism Under Asset Securitization

The core of Asset Securitization, as an important financial tool and financial invention, is the risk-remote mechanism. Whether securitization will successfully accomplish the anticipated effect will depend on the successful establishment and operation of such mechanism.This paper will discuss the relevant legal matters on the risk-remote mechanism under asset securitization, and will further explore from legal perspective the establishment and improvement of the risk-remote mechanism of asset securitization and the protection against risks in the field of securitization, attempting to create a new angle for study and thereby provide a cut-in point for the entire study on asset securitization.This paper firstly describes in general the operation mechanism and the basic process of asset securitization, and the legal meaning of the risk-remote mechanism, and further explain the core issues of risk-remote mechanism and its critical function during the course of asset securitization; Secondly this paper, closely surrounding the core issue of the risk-remote mechanism and combining the current situation of asset securitization of different countries, elaborates in detail the relevant legal issues arising from the course of transfer of securitized asset and the formation of special purpose vehicle of securitization. While discovering the issues, this paper also provides constructive suggestions and thoughts for the solution of the issues and uses great effort on stating between the context on the current legal situation and relevant consideration of risk-remote mechanism of asset securitization in china; Lastly, it presents a summary of this paper and concludes that we should, by relying on legal system, advance the improvement of risk-remote mechanism of asset securitization, and restates, in light of the current non-ideal situation of domestic legal system on securitization, the importance of strengthening the establishment of legal system and thereby building up the risk-remote mechanism of asset securitization in state.