Research On The Prudential Obligation Of Trust Trust In China

What the greatest contribution to the field of law made by the British if someone asked? There is no doubt that the answer is the mature trust system with gradual development of centuries. As one of the four main supports in the global financial market and an investment tool with high efficiency, the trust system which possess a flexible system design and well performed investment management mechanism are highly valued by investors from global capital markets. The rule was invented in England and had its prosperity in the United States of America. Based on the truth that there is no tradition to distinguish the equity and the common law in the continental law system, therefore, the rules mentioned before in civil law countries are essentially inherited from the British and American. As the socio-economic development, the watchman of the trust property stepped to the front door and played a more important role with increasing power in the field. Under the frame of modern trust system, the question is focused on how to regulate the behavior of the trustee during the process of investment and make sure to perform the relevant obligation actually. Trustee’s duty of care is dancing in the centre of the ring. Tracing back the path of trust development in common law system, the land use system and the verdict from the Court of Chancery came on the stage for the first time, and then with the emergence of social and economic development, the Statutory Lists showed his face in England. Consequently, the trust law of America inherited the gene of the British empire and made a further step to orientate their own condition and developed a new theory. That is called the prudent investor rule or the old rule. In1994, the federal government legislated a new act called "The Uniform Prudent Investor Act". Integrated with the idea of modern portfolio theory and based on the old prudent investor rule, a whole new rule was created. The new prudent investor rule provides an objective criterion on how to measure whether the investors fulfill their duty of care or not. From2001China’s "Trust Law" was promulgated until today, only a few dozen years, compared with the common law countries trust mature institutional system, there are many areas for improvement, especially in the trustee’s duty of care standards. How to learn from foreign trust law and absorb its reasonable elements in order to enrich and improve the existing trust system in China, is worth fighting for everyone in this field.