Study On Legal Issues Of Risk-prevention In Asset Securitization

ABSTRACT:It is a key point as well as difficult point to prevent effictively against risks in the process of asset securitization. This article dicusses risk-preventing issues of asset securitization in the legal and institutional levels. The first part defines basic concepts of asset securitization and the securitizing process, and analyzes all kinds of possible risks in the process. The second part provides a comparative study of foreign countries'legal systems about risk-prevention in asset securitization. The third part presents the current development of asset securitization and related laws in China, with analyses of defects in the existing system. The fourth part proposes perfecting suggestions practically and purposefully.Author dicusses the risk-preventing system of asset securitization mainly from the following two angles:The first is internal risk control of asset securitization, centered on providing security for the effictiveness of risk separation mechanism, primarily including regulations of special purpose vehicle (SPV), relevant standards of genuine intent for sale, and rules about rating agencies, etc.The second one is external risk control of asset securitization, which mainly includes regulating theories, models of regulation, information disclosure, international cooperation and other aspects.