Invester Protection Under The SPT Mode

Asset-backed securitization (ABS) has become the necessary under the present Chinese market circumstances, which can be verified by the greatly developed capital market, lopsided raising fund style, superfluous financial liquidity and abundant securitization capital. On the other hand, ABS is just at the beginning stage in China and the relative system still needs further building. During the process of ABS, the investor protection is a new question for discussion. As the basic participant and important capital source of the securities market, the securities investors should enjoy both the complete and the unique rights in the market. The protection to the investor's rights and interests is the foundation of the development of the ABS market and the basic tenet of carrying through the concerned law system.More than one ABS mode can be used in the market. As for China, the special purpose trust (SPT) frame is comparatively mature in practice, but many problems still need further theoretic study. Setting about the ABS theory, using SPT style as the masterstroke and supervision as the view of angle, taking into account of the general principles of investor protection theory, this article focuses on the investor protection system under the SPT mode of China. The correlative regulates in some countries with mature ABS markets as America, Japan and Taiwan are introduced in this article, which is worthy to be referred to by Chinese market.The content can be expressed by the following:Firstly, to build the ABS market supervising system. Supervising systems of issuing, participating organs, information discover are discussed here and the conclusion is that the moderate supervision mode is more fit to the ABS market.Secondly, to build the basic asset system. As the basic guarantee of the investor proceeds, the ABS fund must be strictly standardized.Thirdly, to build the risk remote system. As the center system of ABS, the realization of the risk remote is based on the realization of true sale by the fund transfer and the avoidance of essential merger. Under the SPT mode, the building of the risk remote also needs valid trust and the change from basic asset to independent property.Fourthly, the right to the ABS investors and its exertion, which is essential to the investor proceeds protection.The corresponding qualification and abundant invest experience are needed under the complex ABS system. And under the SPT mode, the investor plays the role as both the trust beneficiary and the securities investor, who can enjoy many rights including the beneficial one. The concerned rights are exerted by the manner of the asset securities holders' meeting, of which the convene, function and holding systems are also discussed here.Some study methods, such as the demonstrated and comparative methods are used in this article, and the analysis on the topic lies on both macroscopically and microcosmic angles of view. The study purpose is to provide some beneficial academic viewpoints on how to protect the investor's rights and interest in the process of ABS.