Research On The Duty Of The Trust Investment Company

The research on the duty of trust investment institutions originate from the development of trust relationship and trust culture. Trust investment institutions originated in England 13th century, and prevailed in the common law countries, then passed into civil law countries in the 20th century. Over the past 20 years of reform, China's trust investment institutions developed quickly. However, there are still a few researches on the duty of trust investment institutions. Most in-depth studies are on the creation, development, and lacking of innovation of trust and investment institutions from the perspectives of economic and management. But the researches on the duty of trust investment institutions from a legal point of view are very few.The duty of trust investment institutions is just a legal binding which is set by the trust law in the purpose of making the meet the client's wishes and the beneficiaries'interests better. The main ways for trust investment institutions to meet the beneficiaries'interests and achieve the clients'wishes are doing certain actions or not in accordance with the law.The duties of trust investment institutions are similar to the trustee's duty in the common trust legal relations. However, with the own professionals, the duties of trust are more stringent. The features of the duties of trust investment institutions are altruistic aims, content limit, legally binding, the diversity of ways, and the main beneficiaries. The duties of trust investment institutions are set by the clients, the trust investment institutions and the beneficiaries. The main objects of the operation are including general property, investment funds, the vote right and the state-owned assets. At the same time, there are some similarities and differences between the duties of trust investment institutions and the other contractual duties, such as agent obligation, discipline obligations and keeping obligations. Generally speaking, the content of the trust duties is wider than that of the other contractual duties. And the duties of trust investment institutions have a higher faithfully requirement. By comparison analysis, we can get that the main duties of trust investment institutions are good management, faithfully obligations, careful attention. Specifically, these include the duties to the client's, the duties to the beneficiaries as well as the duties to the third party, in which the duties to the clients and beneficiaries are the main parts. The duties to the third party are having a debt nature. The civil liability for breach of trust which are both default liability and tort liability dual nature in essence. The appropriate attribution principles are fault liability principle and the principle of presumption of fault. The ways for the trust investment institutions to bear their civil liabilities are restoring the trust property to its original state, compensating for the trust property losses, dismissed, completing the relevant records and paying default and so on.