China Trust And The Regulatory Regime Is Perfect

Trust as a modern system of property (assets in particular) management, based on credit, has facilitated even more detailed classifications and increasing private personal property of modern society by means of commission. Today it has been widely adopted in property management, wills executions, activity for public interest and many other areas, and thereby plays a significant part in widening investing and financing as well as alleviating the conflict between supply and demand. Under the present legal structure, trust institutions are entitled to enter capital market, currency market and are capable of investing on commission, which are predominant compared to other financial institutions in optimizing and promoting resources distribution. However, if effective supervision measures are not taken, the financial crisis may therefore result, hampering economic development, let alone the realization of the purpose on trust.Trust system in China has largely developed since it opened up in 1978. However, problems, like ambiguous status and object of trust institutions, nonstandard operation, imperfect investing regulations, irrational assets structure and weak crisis controlling, arise at times. Some of which has, to some extent, impacted the balance of finance system. Therefore, with the fast development of trust industry, the perfection of the trust supervision system in China is paid more and more attention. This paper will be developed from the following three parts:PartⅠwill begin with the history and the development of trust supervision system at home and abroad. Through consulting the relevant systems and its development in the three relatively developed countries—England, the United States and Japan, summed up some valuable experiences for the improvement of our trust supervision system.PartⅡwill focus on the development of the trust supervision system in China. Through the analysis of current situation in the government supervision and self-regulation aspects, the author reveals our existing flaws and shortcomings of trust supervision system. PartⅢis the suggestion for the perfection of trust supervision system in China. The main reason for the existing shortcomings in the trust supervision system is that our trust system is far from perfect in terms of its wrong theory, lagging legislation and improper supervision and imperfect system in self-regulation. For this, the author will give her feasible suggestions by analysis the advanced experience from developed countries in the legislative and regulatory model. The author hopes that through the improving the regulatory of supervision system, rational allocation of supervision powers and the strengthening of the functions of trust association, the trust supervision system in China can be developed greatly and be more helpful for the promoting of the orderly and healthy development of trust industry in our country.