The Study On The Legal Problems Of Protection The Investors In Asset Securitization

Asset securitization has been started in Sanya since 1992, it is promulgated officially confirmed by law in 2005.By reflecting on the subprime mortgage crisis, asset securitization in China has gone through more than a dozen year, but has not carried out in full swing as the imagination. There are many factors, but the lack of legal system and investor protection improvement, can hardly be not the one that hindered the process of asset securitization. Desire for meeting with international standards also can not make China turned a blind eye within the vigorous development of the world. In the context of the reconstruction of investor protection in the modern world, this paper is stated on the current asset securitization mature system by comparison, hoping to find a suitable road for Chinese investors to protect the development of asset securitization, and to make some scholar of modest means for the development of asset securitization in China.Additioning to the introduction, it is divided into three parts:The first part is the overview of investor protection, mainly on the meaning of asset securitization, history, highlighting the asset securitization process and the operation of the various risks investors may face. By understanding the asset securitization process and the risks, appropriate protection system can be targeted to design.The second part is the Investor Protection System which is divided into five sections explaining the legal basis of investor protection, asset securitization in several large system for Investors Security, focusing on some landed on the analysis of the four systems.Bankruptcy remote system is divided into two areas, SPV building and asset transfer. SPV is the intermediates connecting financiers and investors, which is also the legal entities to achieve bankruptcy remote. SPV is designated to accept the assets of the founder in advance, to realize the separation between the specific assets and other property. At the same time, SPV isolate the investors from the bankruptcy risk of the founder too. Providing investors with new investment.SPV ensure that investors do not be asked by creditors. It is the middle role of SPV to make the founders and investors meet the good requirements without disputes. SPV mainly related to building the choice of organizational form, the independent director system, "substantive consolidation" and government support problems and so on. Transfer of assets, another core issue of the bankrupt isolation system, the way the transfer of assets and price, can determine the nature of the final act, and the bankruptcy-remote can be achieved. Transfer of assets, mainly related to the nature of "true sale" of the identified problems. Regardless of the assignment, it is necessary to achieve "true sale", if the final transfer of assets as a guarantee of funding is identified, then the founder of a particular asset may have to face the risk of bankruptcy or the issuer. This section focuses on the identified standards.Asset management system involves problems of the participation and investment income. After analyzing the various risks asset management may face, this part highlights introduction of the beneficiary system and supervisors institutions in foreign states, and the solution to this problem and proposed to strengthen the financial management of the relevant measures.Information disclosure system is related to investor decision-making, due to its structured finance characteristics, asset securitization is different from conventional securities disclosure both on the content and a lot of ways. Therefore, how to improve the information disclosure system in asset securitization is particularly important. This section focuses on analysis of the obligation of information disclosure.Credit risk is the common risk of financial products, asset securitization products is not the exception. This part analyzes how to absorb and minimize the risk through the introduction of the asset-backed securities and ultimately provide investors with protection. This section includes the credit rating system and credit enhancement mechanism.The third part is the Investor Protection Legislation system, some thoughts and suggestions of investor protection improvement is stated from several major aspects in future throuth the research of the first two parts related. This section includes bankruptcy remote system establishment, financial management system reinforcing information disclosure system and the credit system improvement and so on.