Assembled Fund Trust From The Legal Approach

Trust, as an old system, comes from Britain. It refers to a fiduciary relationship, which differs from surrogate, regarding property and subjecting the person with title to the property to equitable duties to deal with it for another's benefit. Assembled funds trust means a trust in which two or more trustors place their currency in a trustee's hand and the latter would manage these assets for the benefits' of the trustors or for a special purpose.In China, Assembled funds trust works mainly in Private Placement. With the development of finance, Assembled funds trust is playing a more and more important role. It may one day act in Public Offering. To achieve it, we should pass more relevant laws to make Assembled funds trust work. Trust Industry Law should come out in the near future.Specifically, Trust Law should be modified according to the reality, and Trust Industry Law should be made in the near future. It is very common that one legal system has both Trust Law and Trust Industry Law so that Businesses Trust has its own regulating rules. Besides, Tax Law deviced for trust should be made to make the point clear that it's the beneficiary, not the trustor or the trust company, who has the obligation to pay the tax. Concerning the high flexibility of trust products, special acts should be made to regulate different king of trust products, especially for Assembled funds trust. In the coming new rule, Assembled funds trust should be allowed to issue a public offering to level the playing field between trust company and other financial institutions. We believe Assembled funds trust can play a better leverage in the near future.