Legal Risks And Precautions Of China 's Asset Management Business

Assets management business originated from early of the 19 th century. As people’s increased demand for the maintenance and appreciation of assets value, assets management business developed rapidly, and became more and more mature. With the rapid development of China’s economy and the rapid accumulation of national wealth, assets management business in China developed rapidly even it started late. However, with the thinking of "to strengthen supervision but deregulation" of financial reform from the regulatory authorities, all kinds of financial institutions and non-financial institutions started to be engaged in assets management, which resulting in the booming and prosperity of assets management market in China, meanwhile, its legal risks and hidden dangers is accumulating and occurs occasionally. Therefore, based on the comprehensive analysis of assets management business’ s legal risk and the causes, combined with the advanced experience of the developed countries or regions such as the United States, Japan and Hong Kong, this paper try to study on and put forward suggestions on the improvement of the legal risk prevention mechanism, to promote a better development of the assets management industry.The first chapter of this paper, based on the clarification and definition of the assets management, summarized the characteristics of the assets management business, and divide the assets management business into different types according to different level, to discuss and analyze the legal nature of assets management business from reality and ideal. The second chapter of this paper described the common legal risk of all kinds of assets management business from the external legal environment risk aspect and internal operation legal risk aspect, and analyzed the special legal risk of property, rights to yield and other individual assets management business, and carried on empirical analysis of the above mentioned legal risk through three cases, the Industrial Fund Bao financing dispute, Cheng Zhi Jin Kai#1 cash crisis and An Xin Chun Gao trust disputes.The third chapter of this paper, stated the causes of legal risks of assets management business in three aspects: the institutional defects of assets management, the lagging of regulation system and the anomie of related subjects, in which : institutional defects is showed in the weak legal system, the lack of supporting system and the loopholes in the existing law system, etc.; the lagging of regulation system is showed in the inadaptability of the system of financial industries managed and supervised respectively, the imbalance of financial regulation and innovation, as well as the lack of industry self-discipline organization; the anomie of related subjects mainly include the self-discipline anomie of assets management institution, investors’ lack of asset management capabilities and the excessive regulation of financial regulators, etc.The fourth chapter of this paper introduced and analyzed the advanced experience and measures of legal risk prevention on assets management business of the developed countries or regions such as the United States, Japan and Hong Kong, learning the advanced experience to promote the improvement on legal risk prevention mechanism of the assets management business.The fifth chapter of this paper put forward suggestions to improve the legal risk prevention mechanism of China, from the macroscopic level and microscopic level.. On the macro level, it is suggested to identify the legal nature of assets management business, to improve the legislation system and right remedy mechanism, and to promote transform institutional supervision to functional supervision. In the micro level, should promote the construction of industry self-discipline organization and the regulation, strengthen self-discipline of assets management plan innovation and the construction of internal control mechanism, and finally enhance the investors’ risk prevention consciousness.