Legal Regulation Of Financial Groups’ Improper Related Party Transactions

With the rapid development of the financial sector, the financial sector’s business model begins to shift from separate operation to the mixed operation, the mixed financial group is a typical representative of the mixed operation, it maximization focuses the financial resources,and translates them into economic interests, but the financial groups’ profit-driven nature pursues them to maximize the benefits by all means, improper related party transaction is one of the means. Through improper related party transactions, the financial groups expand the risk of a single industry to the entire financial sector and form into the system risk which threatens the entire financial sector, the systemic risk has also formed a strong impact on the existing regulatory system. Lessons learned from the financial crisis in 2008 show that: the traditional regulatory system–the sub-sector regulatory system and the mixed regulatory system have been unable to control the systemic risk threatens the entire financial sector, and the systemic risk is brought by the improper related party transactions of the financial groups.In view of this, this paper intends to build a new regulatory regime in order to effectively control the systemic risk. The internal logic of the article is : By explore the basic theories through the improper trading’s concepts, features and hazards of the financial groups,combine with the status quo and the dilemma of the existing regulatory system, we make sure that the lack of the systematic supervision is the main reason for the current legal and regulatory problems of the financial groups’ improper related party transactions. Then we introduce the new idea of the systematic supervision, and further demonstrates the fitness of the systematic supervision and supervision of the financial groups’ improper related party transactions; After the above studies, we construct a new regulatory system of the financial groups’ improper related party transactions-- the systematic regulatory system, and correspond the concept of reconstruction, design the system and improve the standard.Therefore, the key point of this article is: Group improper financial transactions related legal regulation is necessary, but the moment there are legal and regulatory dilemma, hence it is necessary to introduce systemic regulator.In addition to the introduction and conclusion, this article consists of four parts:Introduction section introduces the background of this article, the significance of the topic and the status of research.The first part: we mainly determine the concept, the features, the hazards and other basic content determined of the financial groups’ improper transactions. Financial groups’ improper related party transactions are legal acts which transfer resources and obligations through improper financial behavior between the financial groups. They damage the principle of fairness and justice, as well as cause the lose of the parties to the transaction and unrelated parties. Specific types of the financial groups’ improper related party transactions consist of the surface and the substance. The features of the financial groups’ improper related party transactions related are below: It is produced in special industries-- financial sector; It relies on special trading platform to trade, and the risk it brings is more special. The financial groups’ improper related party transactions mainly has the following hazards: The feature--scale of operation leads to the collection of funds and the monopoly profit trend; The feature of unique risk profile strengthens the systemic risk; The feature-- multiparty participation of the trading leads to the damage to the interests of all.The second part: we mainly discuss the status, the plight and the reasons of the financial groups’ improper related party transactions. we sort the status of the financial groups’ improper related party transactions first, after that, we find that there are a lot of questions when the traditional regulatory regime regulates the financial groups’ improper related party transactions, such as the regulatory body illegal exercises of regulatory power, serious violates the interest of the consumers and producers, the regulatory responsibilities belong unclear.Then, we conclude these questions and find the main reason is the lack of systematic monitoring.The third part: We specifically introduce the systematic supervision, and regard it as the new idea of the financial groups’ improper related party transactions supervision system. First,we explain the theoretical basis of the systematic supervision-- systems theory, and figure out how to build the systematic supervision in accord with the principle of system theory. Then we elaborate on the fit of the systematic supervision and improper related party transactions financial group supervision system, and empirically demonstrate the feasibility of construct a systematic supervision regime of financial groups’ improper related party transaction.The forth part: We mainly construct improper related party transactions financial groups’ systematic regulatory system,include remodeling ideas, systems design and improvement of standard.To remodel idea,we should adhere to the principle of unity of subjective and objective, the body of public power and private rights should help each other, and realize thevalue of the diverse pursuit.To design system,we should build the public power regulation,the private oversight and the information sharing mechanism at the same time, also we should develop the supporting system for them. To improve the standards, we should achieve convergence of public and private law, in particular, to improve the relevant provisions of the special law.The last part is the conclusion: we briefly summarize the arguments and views of this article.