China Trust Enterprise Annuity Operations And Regulatory Issues

With China's Labor and Social Security Department's promulgationof Trial Measures for Enterprise Annuity and Trial Measures for EnterpriseAnnuity Fund Management in 2004, the pattern of trust is prescribed asthe mainstream model of the enterprise annuity operation. Under thissituation, this article deals with how trust enterprise annuity isoperated and supervised in China. It is divided into four sections: howtrust enterprise annuity is defined, operated, managed, and supervised.They are arranged logically but naturally, each part with detailedelaboration. The definition and evolution of trust enterprise annuityexplains that its radiation process is progressive and it is the necessaryresult from summing up the domestic experience and referencing the foreignexperience.On the basis of understanding the concept of trust enterprises pension,the thesis has stated detailed the entire operational process of trustenterprises pension, which is a key point of the text. This part deeplyanalyzes pension's operational process under the model of trust bydemonstrating information flow and cash flow of trust enterprises pension.The part also depicts the relevant parties' obligation and the legalrelations among them. Management mechanism is indispensable in order to insure the normaloperation of trust enterprises pension. Internal control, independenttrustee system, information explosion and agency supervision are all theassurance of trust enterprises pension. This thesis also discusses theimpotence of investment management as a key role in trust enterprises.Ensuring the safety and steadiness of investment is not only in favor ofthe development of our capital market, but also plays a decisive role insecuring the rights of beneficiaries of annuity. That's why supervisinginstitution has a concrete requirement and designing to the investmentkeepers, and does some limitations and restrictions in laws. Investdecisions by the investment supervision committee and specific work ofthe investment supervision committee with top brokers to its core shouldbe strictly supervised.In the last part, this thesis discussed the monitoring rules,monitoring institutes, monitoring content, monitoring technology andmonitoring methodology.It has discussed trust enterprise annuity indetail which includes the information of trust annuity qualification andsecond entry right, information disclosure and report;commissionmechanism;warranty and risk conservation, etc. In addition, theincentive problem is also important in trust enterprise management. Thispaper dedicates to induce the new subject of enterprise annuitydevelopment.