Trust Products "Rigid Payment" Of Legal Thinking

Trust originates from United Kingdom, prevailing in the United States, Japan access toinnovation and development and has become one of the four pillars of world financial. AfterChina’s reform and opening up, especially since2007, people’s enthusiasm has been heatingup of trust products, trust industry has boomed, even in challenging economic conditionsgrowth prospects remain strong. China Trust market could increase from3trillion yuan in late2010to2013the total more than10trillion yuan at the end of the scale. Trust and investmentdeveloping rapidly in China, the main reason for this is a trust product appearance in the"rigid payment". Literally understood trusts "rigid payment" mainly refers to the product after theexpiration of the trust, trustee to the trust beneficiaries must allocate investment principal and investmentexpected returns of initial commitments, even though investment trust products appear impolitic, entitydefault case, the trustee continues to fulfill its commitments, shall bear unlimited joint and several liability.Although in the short term,"rigid payment" to maintain a trustee’s reputation, inspire theenthusiasm of investors and stabilize financial markets. In the long term development,"rigidpayment" is a breach of trust to the market development and the growth of cash way, itcontains a hidden risk of China’s trust industry and the investment industry as a whole willbecome a time bomb. If trust companies wants to seek survival and development in asandwich, trust industry wants to develop more healthy. We must fully understand and mastertrusts "rigid payment" behind unseen dangers and risks related to legal gaps, improve relatedlegislation, strengthen legal supervision over industries and to establish more comprehensiverisk prevention mechanism of prevention and control. Therefore, based on the analysis of trustproducts "rigid payment" phenomenon in China and describes problems in the trust law.Reference the foreign trust law developed and advanced experience in the trust industryregulation and proposed China’s trust law and regulation and supervision of relevantrecommendations, so as to achieve the purpose of trust products rigid payment as soon aspossible.This article is a case study paper. Body part is composed of three parts. The first chapterintroduce the payment case of China Credit Trust Company. Through case analysis, proposed focus problems。This chapter begins with a brief presentation of payment cases of ChinaCredit Trust Company happen in2014, with the typical trust products "rigid cash" case as thisdiscussion of clues. Secondly, in the case on the basis of, respectively, from "rigid payment"concept, potential of identified risks and their impact on the independence of trust propertyfocus on three aspects, full text of discussions also will focus on these three issues.The second chapter continues to analyze and explore the three focusissues. This chaptercan be divided into two parts. First part describes the trust products "rigid payment" in China’sdevelopment process, the identification and "rigid payment" in the present situation ofdevelopment. Analysis of the "rigid payment" the cause deeply, there are hidden risks andbreak the "rigid payment" the necessity of deep this crisis of trust industry for furtherdiscussion. The second part focuses on the principle of independence of trust property deals,from the perspective of the theory of trust products "rigid payment" and contradictions amongthe core principles of the trust. Through the resolution of independence of trust propertytheories of meaning and trust relationships, digging out the address "rigid payment" basis.The second chapter from the perspective of both practical and theoretical arguments, thusmore complete system to trust products "rigid payment" phenomenon has roots, and furtherrationalization of the proposed solution.The third chapter crack "rigid payment" choice. Of trust business to solve present "rigidpayment" crisis requires not only legislative norms, needs discipline, and many other legaloversight, the trustee working together. So in this chapter, the author proposes that thefiduciary aspects of proposals of laws and regulations, primarily strengthen the building oftrust legislation, improve trust publication and registration system, refine and distinguishbetween the liability of trust and strict fiduciary’s duty of loyalty. Through theserecommendations in order to achieve the trust products "rigid payment" of legal regulation.Secondly from a regulatory point of view, strengthen the building of trust industry regulatoryregime and trust supervision Center of gravity moves forward in order to achieve the goal ofprevention. Again trustee perspective. Optimize their business model to improve propertymanagement and risk prevention awareness, prevent and release from the Trustees ofmismanagement and other causes of default risk. Optimization and innovation in trust products, products in the face of investor risk assessment before using top talent to build moretrust to secure quality products. Finally to develop concept of investors in venture capital,caveat emptor, while the Government will have to build up a healthy investment environment.From legislative oversight, risk management, social and environmental aspects of mypersonal trust products "rigid payment" of a few pieces of advice, hoping to trust products"rigid payment" crisis exploding, contribute to the development of trust industry its ownmodest forces.