The Study On Legal Issues Of Private Asset Management In Commercial Banks Of China

In recent years, with the development of the financial market, the private assetmanagement which is comprehensive and characteristic appeared in the commercialbank of China. After initial boom, there are legal issues which have not been solvedand hidden troubles with regard to the management.To perfect the financial market, it is significant to consider about the legalrelationship of the private asset management, which is not clear in terms of the law.The indeterminacy of the legal relationship between the investor and the bank willbring a series of problems, which mainly contain problems about the informationdisclosure system, the pledge and the disposal of the private asset management whena bank goes bankrupt. The thesis constitutes the starting point for defining the legalrelationship between the personal investor and the commercial bank, the informationdisclosure system, the pledge, the bankruptcy of commercial banks. Based on theanalysis, there are conclusions and proper suggestions about those legal issues inorder to contribute for the private asset management.The article is divided into three parts: the introduction, the main body includingfour chapters, and the conclusion. Belows are the introduction of the main body:The first chapter provides the concept and categories of the private assetmanagement, and then defines the legal relationship between the personal investorand the commercial bank according to the category. The Private asset management falls into three categories: guaranteeing proceeds, guaranteed principal with floatingproceeds and non-guaranteed principal with floating proceeds. The main legalrelationships involved in the private asset management are the debtor-creditorrelationship and the fiduciary relationship.The second chapter analyzes the information disclosure system of the privateasset management of commercial banks based on the legal relationship. Actually,there are defects in recent legal system, which contains the low level of legislation,the imperfection of particular provisions, and the lack of effective supervisionmechanism. According to the particularity of the private asset management, particularregulations should be confirmed in the higher level legislation with effectivesupervision, and responsibility system should be perfect to ensure the implementationof the disclosure system.The third chapter discusses the pledge in terms of private asset management.According to the legal relationship of the private asset management, the financialproduct is consistent with the characteristics of the subject of pledge of rights, whichhave not confirmed by law. As a new financing path, the pledge is faced with thedilemma. So it is important to establish legal system of pledge of this financialproduct and corresponding system to perfect the financing path.The forth chapter focus on the issue how to dispose the private assetmanagement if the commercial bank become insolvent. Though there is no exampleof the bankruptcy of the commercial bank in China, there are regulations about thebankruptcy of the financial institution in the China’s bankruptcy law. So the researchon this issue is of consequence considering the law of development of marketeconomy. In terms of the private asset management involved in the bankruptcy andinsolvency process, it should be considered that creditors right and trust property inbankruptcy proceedings. Based on the legal relationship, different private assetmanagement should be treated differently.