On Legal Issues Regulatory Reform Trust Industry In China

Trust industry is one of the four financial industries. The supervision of trustindustry is an important part of financial supervision. The12th five-year–plan hasset an demand, in the period of the next five years, we will deepen the reform of thefinancial system, make efforts to perfect the financial supervision system,strengthen the coordination between financial regulation, considering the wholefinancial market before formulating the regulation, and formulate the regulationcross industry and market. The18th CPC National Congress report has reaffirmedthat deepening the reform of the financial system is an important part of economicsystem reform. This paper selects the legal issues on the regulatory reform of trustindustry from the view of the financial regulatory reform. There are still manyproblems in the trust industry supervision. In order to resolve these problems, thispaper offers some reform proposals to prefect the system of trust industrysupervision.The paper is composed of four chapters. The first chapter introduces the way toreform of the trust industry supervision in China. Firstly three different explanationsof trust industry are given, and the third one is chosen. That is trust industry is madeup of all the trust institutions and all the trust business. From this definite, thechapter traces the history of the trust industry supervision reform from1978. Thesecond chapter analyzes the problems in the trust industry supervision. There arefour problems in our trust industry supervision. They are more than one regulationsubjects, not uniform regulations, not comprehensive regulation objects and weakself-regulation. The third chapter studies the aim, principal and mode of the reform.The chapter sets three aims for supervision reform, including protecting the lawfulrights and interests of investors (including the trustees and beneficiaries), promotingthe trust industry’s fair competition and effectiveness and improving the efficiencyof the trust business supervision. Four supervision principles are supervisionaccording to law, moderate regulation, public supervision and impartial supervision.It is proposed that the supervision mode should be changed from the institutionalregulation to functional regulation. The forth chapter offers some proposals to solvethe problem. In order to solve the problems in the trust industry supervision, unified supervision is necessary. So, formulating the law of trust industry, solving theproblem of the regulators in trust industry step by step, providing moderatecomprehensive regulatory content in the law of trust industry, strengtheningself-regulation are the proposals.