A Study Of Legal Restraint On Financial Group's Internal Transactions

For long time,In order to prevent from financial risks,many countries haveestablished the pattern of divided trade and regulation gradually .This kind ofsystem played an important role in defending financial security ,acceleratingfinancial development under the special conditions. But in recent years ,with thecontinous development of economy and finance,that divided pattern reveals one byone its inherent faults,which placed restrictions on financial contest and efficiency.Conforming to the great tendency of confusing trade ,many countries begin to looseregulation gradually .The form of financial enterprise group began being born. Asone kind of transitional form to confused trade——The financial enterprise groupachieved "artificial person is divided trade,The group is confused trade "Moreover,it has gradually obtained the confirm in law and the development in practice. Thefinancial enterprise group has lifted the efficiency. At the same time ,it brings a lotof new hazards among which the internal transactions is the most obvious, Therefore,the important and difficult thing is how to supervise the internal transactions of thefinancial enterprise group for most countries.The article begins with the basic concepts. The financial enterprise group is inessence one kind of organization consisting of financial holding company andsubsidiary companies. ordinarily, financial holding company control those subsidiarycompanies which must comprise bank,security or insurance subsidiary companies;Moreover ,the subsidiary companies have independent artificial personqualification .In reality ,it takes the form of "The group is confused trade ,artificialperson is divided trade ".The internal deal is the transaction among interior membersor the transactions among one member in the group and the third person out of thegroup, which is based on internal arrangement(the transaction is controlled byseveral internal members ).And then the article analyzed the theoretical basis of lawcontrol in two perspects of economics and law. The part of economical analysisintroduced the risks caused by internal transactions and the analysis of law is in thefollowing aspects: social hazards,the principle of justice and trust,the superiority oflaw control and so on. At last,the article will bring out some effective measures oflaw control for internal transactions. The article thinks that law control should be indifferent levels and aspects which comprises the system of impartial markettransaction,the system of internal control and the system of exterior supervision.