Research On The Trust Financial Bussiness Of Financial Institutions

With the rapid development of financial business in our local market, the emergence ofthe various types of financial products on the market, the difficulty is how to judge the casesarised by the financial business. From the plight of judicial discretion, causing us to thinkabout the basic legal issues that what legal relationship between the parties in thesebusiness. About the problem what the legal relationship between the parties in these business,there are a variety of different theories of our practitioners and academics, at the same time,the official also seems to be in a dilemma that whether or not they should permit financialinstitution mixed operation because of the nature of trust. The incompletion of lawsaccelerated the market confusion, increased the difficulties in the judging course. Thesupervision of the financial business have the problem that even if the different financialinstitution operates the same type business, they have to face the different financial regulatorand the different rules. Therefore, the analysis of the legal relationship of the financialbusiness in the market and the discussion of how to improve the supervision will effectivelychange the current chaos in financial business market. This paper, basing on the practicalrequirements, and the first part of it is concern about the basic theory of trust and financialtrust, focuses to discuss the concept of trust and the financial trust, the conditions that makefinancial trust established and been effective. The second part of the paper is about the assetmanagement business of commercial banks and securities company, focusing on introducingthe different types of financial business, and summarizing the different kinds of academicpoint of view that what the legal relationship is in these kinds of financial businesses. In thethird part of the paper, I made the classification of the current financial businesses and madethe definition of the legal relationships in the financial businesses. In my point of view, thereare two kinds of financial business, the first one is trust, and the second one is that if theychoose trust as their basic legal relationship, that will be better than others. In the fourth partof the paper, it focuses on these issues that are about the trust supervision, the first one islacking for the definition of the trust legal relationship in the financial businesses; the secondone is different levels of trust supervision, which is causing the unfair problems in thecompetitions of trust; the third one is not to set up a regulator which is professional andunified to supervise trust operation; the fourth one is the dispute about the bottom profit clause, and if we admits the effectiveness of the bottom profit clause, that will help to protectthe client’s interests, and will good for the development of this industry at its’ early stages.