Legal Regulation On Ttrust Product Of Personal Wealth Management In Commercial Banks

Personal wealth product of trust in commercial banks means: commercial Banks and the trust companies build a trust through a trust contract, and then as principal, the bank give the trustee all the funds which are the collection of investor's money as trust property. Trust companies as the trustee, would invest and manage the property in accordance with the contract of trust. Trust property and income will be distributed to the investors after the expiry of the trust.This product not only activated domestic monetary and capital markets, but enriched public investment channels. At the same time we are also aware that in the sub-sector context of banking supervision in China, personal wealth product of trust faces many legal issues. This article attempts to give in-depth analysis in issues which is either in a higher concentration of risk in practice, or controversial in theory. In the end, drawing on the experience of financial regulation of the developed countries, and combined with the status quo of China's legislature, this article made comprehensive proposal to the law system. This article is structured as follows:In the first chapter, the author starts from the definition of personal wealth management business of commercial banks and the personal wealth product of trust in banks. On a clear conceptual basis, the author clarifies the different types of the products, in order to provide the foundation of discussion in legal nature. Finally, this article discusses the legislation in China's personal wealth product of trust in order to pave the way for the following discussions.Chapter II, the author analyzes several representation theory of legal nature of personal financial management, and believe that the nature of typical banking personal financial services should be the law of trusts, so is the personal wealth product of trust. On premise of the trust, rights and obligations of the banks, trust companies, customers and other objects are fully described.The third chapter, the author focuses on the current legal risk which exists in personal wealth product of trust in commercial banks of China. The risks mainly include:Lack of uniform regulatory standards for financial planning; legal risk in the co-existence particular mode of the banks and trust companies; the uncertainty of interests of the parties caused by the dispute in effectiveness of the provision about "guarantee the minimum"; the risk of bank's failure to fulfill the obligations of tips and information disclosure and other specific risks. The discussions above are in order to offer a basis to put forward legislative proposal to the banking regulatory system.The final chapter, the author put forth some legislative proposals as to improve China's personal wealth product of trust in commercial banks. At the present stage, it should be a progressive approach to coordinate the departmental laws conflict. Supervision of financial institutions need to improve the existing tripartite system of supervision and coordination, and gradually come to a unified financial supervisory standards; legislation which protects the interests of customers should be well-involved, which includes:the specific system of Beneficiary of the General Assembly; clearly define bank's civil liability; Finally, the author looked to the future of China's financial industry--- the trend of mixing business is inevitable. The elimination of the current legal and institutional barriers would offer a larger space for the development of financial management activities in China, including personal wealth product of trust in commercial banks.