The Legal Issue Study Of The Rigid Payment Of Assembled Fundstrust Plan

The rigid payment of Trust Plans of Assembled Funds happened frequently in 2014 in CHINA. With different of wealth management products designed by Commercial Banks, Trust Plans of Assembled Funds is a kind of process which having a financing arrangement and trust plan first, and then looking for trusts to sign the plan. The structure of deal, in which trustee pay the principal and benefits to beneficiary with self-owned capital, is not only violating the provisions of the law, but also triggering mismatch of resources in market and slowing down the establishment of a multi-level capital market. Based on this, analyzing the causes and putting forward the solution of rigid payment play a crucial role to promote the development of trust business.On the one hand, the era background and institutional environment created the rigid payment of Trust Plans of Assembled Funds. These macro factors made the asset management business in trust faced greater competition and smaller market share. So trustee tends to make the commitment that they can pay the principal and benefits timely.On the other hand, the single business structure and the convergence of investment strategy, the loose internal management and operation mechanism are all fundamental factors which made rigid payment of Trust Plans of Assembled Funds. With all Trust Plans of Assembled Funds issued in 2013, loan financing occupied a half,almost all the funds were invested to the real estate and infrastructure projects.And, the trustee were not constrained by strict inform obligation, the choice of guarantee measures and review of project were not perfect and careful also.Combined with rigid payment causes, this paper puts forward solutions from four aspects, hope to solve the problem slightly. Firstly, on the basis of drawing lessons from American legislation, we should conclude and perfect the inform obligation of the trustee. Secondly, the trust industry should seize thecurrent opportunity given by the era background, speeding up the transformation and upgrading of the trust business structure.To optimize the existing private investment banking, encourage the development of asset management, private wealth management, and other new business. Thirdly, trust products should adjust structure of trading. Using the way of portfolio investment invest the trust money into multiple areas to spread risk. Fourth,. We should use legal measures to solve payment crisis. When facing payment problem, we can choose to realize the real rights for security, or to lodge a complaint, or to cooperate with asset management companies, from the perspective of crisis response to break the rigid payment problem.