The Trustee Prudent Investment Obligations Study

With the development of the economy, there are multiple forms of social wealth, the function of the trust gradually turns to profit from investing the trust property, In the parts of the legal relationship of the trust, as the actual manager of the trust property, the trustee was once the negative holder, now he becomes the manager who has to operate the trust property actively, the trustee is the center of the trust, he decides the effective of the trust investment, dominate the fate of the trust, so he must be the core of the trust law. The trust law must definitely stipulate the prudent duty of investment of the trustee, so as to protect the beneficiary sufficiently, set aside the necessary space for the trustee to operate and manage, and mold the ideal manager. Because the prudent duty of the trustee is not definitely stipulated in the Trust Law of the Peoples Republic of China and related Administrative Rules, so the benefit of the beneficiary cannot be secured sufficiently, in the real life, not only the interests of the settler and the beneficiary are exposed to damage, but also our country's economical order is influenced by the imprudent even illegal acts of the trustee. Besides, the development of the trust business is also influenced because of the want of the system of the trustee's prudent duty of investment. So this article researches the trustee's prudent duty of investment by the ways of comparative, illustration, historical analyze and so on, in order to use for reference.This article is divided into four chapters. Chapter One is introduction which topic is the trustee's prudent duty of investment under the evolution of the trust's function. This chapter is divided into two sections, the first section is the research on the trust's function, it discusses the evolution of the trust's function which began from the negative trust to the active trust, at the same time it has generalized the characteristics of the modern trust, and pointed out that in the background of the evolution of the trust's function, the trustee's prudent duty of investment has become more and more important. The second section is the research on the trustee's basic duties, it specifies that the trustee's basic duties evolve from the duty of loyalty to the duty of loyalty and the duty of prudent. Then these two duties have been compared.The topic of Chapter Two is a comparative study on the trustee's prudent duty of investment. Firstly, it outlines the content and criterion of the trustee's prudent duty of investment, then elaborates the development and evolution of the trustee's prudent duty of investment in England and America which belong to the Anglo-American legal system, subsequently it introduces the trustee's duty of care in the trust laws of Japan, Korea, and TaiWan which belong to the Civil Law system.The topic of Chapter Three is the analysis of the legal attribution of the rule of the prudent duty of investment and the trustee's responsibility. The first section elaborates the legal attribution of the rule of the prudent duty of investment and this rule is qualified as the default rule, it subsequently specifies the course of how this rule changes into the article of the trust contract and the relationship between the rule of the trustee's prudent duty which acts as a default rule and the contractual basis of the trust relationship. The second section is the investigation on the legal responsibility which caused by violating the prudent duty of investment, firstly it summarizes the specific modes of the responsibility and the principle of imputation in the Anglo-American legal system and the Civil law system, then it has analyzed the nature of the responsibility, separately discusses the responsibility's qualifications in the Anglo-American legal system and the Civil law system.The topic of Chapter Four is expound, comment and advice of perfection on the regulation of the trustee's prudent duty of investment. The first section are the expound and comment on the trustee's duty of care in our country's trust legislations, it points out that the trustee's duty of care in our country's trust legislations is short of the operational quality and the legal system is short of reasonability. The second section investigates on the perfection of the trustee's prudent duty of investment. It has pointed out that we can perfect this duty from four aspects, the first are the content and criterion of the trustee's prudent duty of investment, the second is the protection of the trustee's rights, the third is addition of the causes of exclusion of the trustee, the fourth is the perfection of the system of investigation on the trustee's responsibility.