Legal Analysis On The Rigid Payment Of Trust Products In China

The trust system originated in the United Kingdom and flourished in the United States, development to 1990 s, has been quite mature and perfect. In recent years, according to the market share of trust products in the financial market shows that the trust industry has been among the four pillars of the financial market ranks. Global investors to the favor of trust products has been heating up, especially since 2007.Trust products showed the trend of attack and quickly occupied large tracts of stocks, debt, funds, bank deposits and other financial products market share. Even in the face of the not-stable economic situation in 2008 years of financial crisis, trust products are still in its revenue and return to adhere to market share, the trust market is still active. Focus on domestic, trust capital market is increasing year by year trend: by the end of 2010, the trust capital of nearly 3 trillion, by the end of 2013, it soared to 10 trillion. Trust products can became popular quickly and gradually in the financial market of our country and occupied large seats, investigate its root cause is rigid payment phenomenon of trust products. From literal understanding, trust products Rigid payment is refers to the trustee has unlimited joint and several liability to return the principal of the investment and expected return on initial commitment to the trust beneficiary, even if it is because the entity default, the default of the counter party, investment missteps and other reasons lead to loss of trust products, the trustee still to crustily skin of head to fulfill the promise of payment. In the short term, Rigid payment is to give investors a “high income, low risk” investment protection umbrella. And the umbrella can enhance the reputation of the trustee, so as to attract more attention of investors.To some extent, the rigid payment is a short-term favorable phenomenon.But once we look at the long-term healthy development of a rational view of the trust rigid payment, it will lose its gorgeous eye-catching coat.Therefore, rigid payment is contrary to the trust property independence, which will hinder the further development and growth of the trust industry. It is no exaggeration to say that the rigid payment is like a ticking time bomb, and even the entire financial markets. Therefore, take off the luster coat of rigid payment,depth analysis hidden risks and legal blank, lack of supervision and other factors, and then improve the trust related legislation, strengthen industry and legal supervision, establish a more comprehensive risk prevention and control mechanisms, trust companies in the fierce competition in the financial market can to return to market rules, and more healthy and healthy development. In this paper, trust case guidance the author views, and combining with the case is discussed.This thesis main body of the thesis is composed of five parts. The first part: through the case and case analysis, summed up the case in the rigid payment issues reflected by the three focus issues: first, the legal basis for the rigid payment where; second, the need to break the phenomenon of trust products rigid payment; Third, how to alleviate or overcome the rigidity of trust products payment phenomenon. The second part: first of all, from the common law system trust property basic theory about trust products rigid payment the introduction of related concepts. Secondly, the introduction of rigid payment and the nature of the trust property independence conflict. The third part: combined with the case, the analysis of the necessity to overcome the rigid payment. The fourth part: discusses the countermeasure to overcome rigid payment, mainly from the perfect trust related legal system and the judicial system, the construction of the supervision system, trust publicity and trust property registration system, optimize trust management pattern etc. The fifth part: conclusion, mainly express the vision to break the rigid payment phenomenon of trust industry in China, and to build a harmonious and healthy environment for trust and investment.