Research On The Trustee's Duty Of Prudent Investment

In the legal relationship of trust including 3 parties:the trustee,the client,and the beneficiary.Trustee is nuclear in the legal relationship of trust for trustee deciding the trust affair and trust purpose.Nowadays,the function of the trust system has changed from maintaining the value to pursuing the increase of the property.So the duty to prudent investment has become the focus regulation in the trust law.After 5 times rectification in trust industry in China,several laws that provide relevant legal gist for the development of trust industry have been issued.But they are all not definite confine the prudent investment duty.The short of the duty of prudent investment has been the reason why the trustee often destroys the client or the beneficiary's interest.On the research of the prudent investment in the common law and analyzing the short of current prudent investment rule in China,the essay has provided some suggestions to prefect the duty of prudent investment.This paper aims at defining the 4 sections as follow:The first section summarizes the trustee's duty of prudent investment.This section describes the history of the prudent investment.Also the section describes the law attribution of the duty of prudent investment.The second part focuses on the content of the duty of the prudent investment.On reference on the Uniform Prudent Investor of America,the author thinks the requirement of care,the requirement of skill,the requirement of diversification and the requirement of delegation are the mail parts of the duty of prudent investment.The third section is about the criterion of the prudent investment duty.According to the case law,there are two mail criterions.Then,the article points out the legal consequence of breaching the duty of prudent investment.The last part points out the short of the country and necessity to perfect our country's regulation of the duty of prudent investment with learning the mature legislation of prudent investor duty of common law system.