Study On The Rules Of Settlement Fund Trust

Our country witnessed rapid development in the assembled funds trust products in recent years. In spite of all the prosperity, it constantly exposed the lack of standardization of assembled funds trust at the establishment and promotion stage, damaged the interests of investors by promoting the "toxic" trust products, and led to many disputes among trust companies, banks and investors at the same time. The structure characteristic of assembled funds trust products which "look for projects in prior and raise funds for investment and management afterwards" makes the prior compulsory regulation of the trust relationship very important. The suitability rule, which has been used in foreign developed financial market as a general rule, shows the advantages in the investor protection during the term of promotion stage and also is applicable in the assembled funds trust. Our country has established the suitability rule in promoting assembled funds trust which is still so rough that to be improved.This article studies the suitability rule based on the concept, content and instances of legislation, analyses the status quo and problems of the assembled funds trust’s suitability rule in our country and proposes content improvement of the suitability rule of the assembled funds trust and the structure of the civil liability system.Except the introductory paragraph, this article is divided into three chapters, which are:The first chapter summarizes the concept and contents of the suitability rule and observes the experiences in the suitability rule of the United States, the European Union, Japan and Korea in order to provide foreign experience for the suitability rule of the assembled funds trust in our country.The second chapter sets forth the current laws and regulations regarding the suitability rule of the assembled funds trust and discusses the legislative problems and practical problems about the suitability rule of the assembled funds. For legislation, the problems exists includes low legislative level, poor systematization, the defects in the qualification and classification of investors, the classification of the products and the responsibility regarding remedy measures. And the problems in practice include the obstacles of the rigid redemption to the suitability rule and the behavior immorality of the trustee. The third chapter discusses the improvement of the suitability rule of the assembled funds trust from two levels. The first is to establish the complete legislation system of the suitability rule and improve the specific contents of the suitability rule in this system. The second is to construct the civil liability regarding breach of the suitability rule of the assembled funds trust.