Regulation On Banking Individual Wealth Management Products

In recent years, while our domestic economy grows at a high speed, the individuals have increasing demands for their wealth management, which promotes the further development of the individual wealth management business. Meanwhile, the large profit produced by the business resulted in the intense competition between domestic banks and foreign ones in the focused market. However, the development of our legal environment lagged behind. The same kind of business conducted by different financial institutions is regulated on different criteria. These lead the confusions of the market and regulation overlap. In order to make our banking individual wealth management product market develop better, we have made a deep research on the regulation of banking individual wealth management products.The comparison method is used here to analyze the regulation on banking individual wealth management product markets in different countries to search for more effective legal principles to solve the problems existing in regulation. Also we use economic and legal theories such as the theory on necessities of regulation, provision principle of security, principle of investment contract and principle of trust to do the research on the emergence of banking individual wealth management products, the necessities of legislation, regulation and judicature, and the legality and sociality of those products.The significance of this dissertation on theory and practice lies in the breaking-up of the old research framework, and making a new and comprehensive research from the view of Trust Law, Security Law and Investment Fund Law, and thus enriching the regulation theories for banking individual wealth management.This dissertation indicates that there are four kinds of legal relationship in the banking individual wealth management business, they are service relationship, proxy relationship, credit-debt relationship and trust relationship. And it is also pointed here that banking individual wealth management products should be regulated according to different legal relationships above. According to the analyses of the credit-debt product and the trust product, the conclusions are drawn here that the credit-debt product should be considered as"security"so that the regulation scope of Security Law can be expanded to banking individual wealth management product market, and that the individual wealth management product of trust should be regulated by Trust Law because of its trust quality. Also, the publicly-offered product has the quality of security investment fund, and should be regulated by Investment Fund Law. According to the analyses above, it is pointed out that functional regulation should take the place of organization regulation on banking individual wealth management product market and the information disclosure should be outlined to protect investors. These will add more to our banking individual wealth market product regulation and make great significance for regulation practice.