Research On Legal Risk Prevention Of Financial Services Through The Cooperation Between Trust Companies And Banks In China

Financial services through the cooperation between trust companies and banks means the commercial banks and trust companies have business cooperation and establish the trust legal relationship through trust contract; banks, as the principal, take investors’ financial funds as the trust property, while trust companies, as a trustee, manage the financial capitals in accordance with the provisions of the trust contract, and distribute the trust property and returns to investors according to a financial contract after the expiry. Financial services through the cooperation between trust companies and banks integrate the business advantages of banks and trust companies, broaden the channels for the use of financial capitals and meet the financial needs of investors. However, people also should see that there are many legal risks hiding behind its prosperity, which become the important factors influencing of its healthy development. In order to make it keep sustainable and healthy development, it is necessary to make in-depth study and put forward the suggestions to prevent the legal risks. Only in this way, can people protect the interests of the broad masses of investors, reduce the risks of banks and trust companies, and promote the further development of the financial services market.First of all, starting with the basic theory of financial services through the cooperation between trust companies and banks, the concept of financial services through the cooperation between trust companies and banks is expounded. Besides, the legal nature of the business(trust legal relationship) is obtained on the basis of analysis of controversy of its legal nature. After defining the legal relationship, the contents of the rights and obligations of banks, investors and trust companies are expounded, and their respective legal responsibility is further clarified. Secondly, the legal risks that three main bodies(commercial banks, investors and trust companies) face and the specific causes are comprehensively analyzed. Thirdly, by studying the risks prevention regulatory reform of overseas financial services through the cooperation between trust companies and banks, the core regulatory idea of risks prevention are obtained and the advanced risk prevention measures are adopted. Moreover, certain reference is provided to legal risk prevention of financial products through the cooperation between trust companies and banks in China. Finally, based under the premise of analysis of the legal risks, the nature of the legal relationship is identified. Additionally, some specific measures are proposed to help the different legal subjects to prevent risks. Some personal suggestions on the reform of legal regulation concept and the improvement of information disclosure and market access system are put forward.The paper takes the legal relationship of financial service through the cooperation between trust companies and banks as the starting point, defines its legal nature as the trust legal relationship, analyzes the legal risk and the causes of three main bodies(commercial banks, trust companies, and investors, and puts forward some targeted suggestions from the their perspectives.