The Research Of Trustee Prudent Investment Rules

Trust is "entrusted by the people, substitution financial management." Trust legal relations, including the tripartite parties: trustor, trustee and the beneficiary. Because the trustee is at the heart of the trust, the trustee of the trust system is undoubtedly the most important element. Trustee system is given the discretion of the trustees, also limits the powers of the trustee to control the trustee misconduct. As the core of the modern trust law, trustee law is supported by two basic principles, that is, the duty of loyalty and the duty of care. The duty of loyalty asks for "doing a good job", the moral request of the trustee, and the duty of care asking for "doing good" is to ensure that the trustee fully displays their professional skills, the premise of seeking maximum benefits for the beneficiary. With the development of the practice of trust investment, trust as a financial expert system, require the trustee is the paid professional administrator. The trustee must have the professional skills of trust investment and trust management. Therefore, the importance of the duty of care is increasingly prominent.Statutory duty of care is the trustee of the regulator. Therefore, the conduct applicable standards of trustee obligations must be requested. The standards of trustee conduct are differences in professional and non-professional trustee. Skill level is a important yardstick measuring the standards of trustee conduct. In this paper, the author innovatively put forward three standards of conduct, that is ordinary trustees, professional trustee and trust investment. The standards of conduct in trust investment follow prudent investment rules. Thus it can be seen, prudent investment rules derived from the duty of care. Prudent investment rules are complex and flexibility, is a relatively new legal concept. Research into its practice is inevitably slightly weaker. From the four aspects of legal attributes, fundamental characteristics, core contents and theoretical background, the author annotation the basic meaning of prudent investment rules. The legal attributes of prudent investment rules is a legal obligation. The fundamental characteristics combine with economic theory. When investing, the core contents require trustee not only to exert procedural care, but also to wield appropriate skills and consider investment risk. Theoretical background is respected and complied with modern portfolio theory. The theory is the cornerstone of prudent investment rules.Prudent investment rules in the practice incarnates in the prejudication of Britain and the United States. The author mainly explore the rules of the legislative evolution over the past 300 years, from the point of view of the prejudication of Britain and the United States. From "legal list" principle of Early U.K. to prudent person principle of the United States to the modern "prudent investor rule", each innovation and progress are established by the prejudication one by one. In this , the author also innovatively analysis the specific provisions of the United States "Unified Prudent Investor Act".From the prudent investment rules in the legislative model of Britain and the United States, we can see the deficiency in our trustee rules. At present, our trustee rules spread around"Trust Law"and other special laws and regulations. "Trust Law" as a general law of trust industry, only prescribe the general issue of trust. And such norms are generally the provisions of principle. Most of the special laws and regulations only procedurally supplement according to its own characteristics, have few entities provisions of law. Such legislation pattern are not seasoned with practice of China's trust and investment development. China is lack of trustee investment rules aimed at trustee rules, prudent investment rules. Therefore, the author propose our country consult the legislative model of Britain and the United States, based on its national conditions, make specific provisions in the three aspects of the duty of loyalty, the duty of care and investment rules ,to perfect trustee rules of trust investment.