Study On The Standard Of Prudent Investment Obligation Of REITs Trustee

For this topic,through four parts,combined with the case,the prudent investment obligation standard of the trustee in the real estate investment trust has been revealed.On the basis of analyzing the prudent investment obligations of the trustees of the existing real estate investment trusts,this paper proposes to establish the formulation and system construction of the relevant rules of the trustee’s prudent investment obligations in the real estate investment trusts in China.The first part briefly introduces the concept and source of prudent investment obligations.According to the guidance of the concept,the “prudent obligation”,as which been referred to by the Anglo-American legal system,is the so called “Kind management obligation” as stated in the civil law system.Based on the real estate investment trust practice,it can directly guarantee the trustee’s prudent investment obligation realization process.More targeted and practical.In the second part,through the analysis of the default of “Zhongjiang Trust·Yinxiang350 Trust Plan”,the paper summarizes the current relevant statutes in China,including the choice of investment objects and the proportion allocation,and the legal consequences of violating the prudent investment obligation.There is no regulation,which in turn affects the determination of the standard for prudent investment obligation.The third part summarizes the extraterritorial related practices concerning the above aspects which is summarized in the second part.The conclusions reached are in line with expectations-common law countries represented by Britain and America,because of the natural fit of the trust law system and its own legal system,may not be directly applicable when the relevant comparison results are obtained.The laws of Taiwan in China have already summarized a set of rules that are effective in civil law areas through regional practice.From the actual situation in China,the trustee generally involves the three parties who use the funds.They can conduct unified management of the real estate project investigation committee according to the established requirements,so as to be able to determine whether the relevant real estate projects can be carried out normally and clearly.Secondly,the trustee cannot entrust the management right itself,which is mainly to ensure that the investment and management are in line with the scientific management procedures.Thirdly,the trustee itself needs to carefully handle the relevant scope of investment,and more scientifically eliminate the possibility of possible risks.Finally,the trustee needs to control the real estate investment trust fund more effectively to ensure that the investment target has a certain degree of directivity,so as to ensure that it can achieve more effective investment behavior step by step,prohibiting real estate investment trusts from engaging in securities credit transactions and different operations of investment.Based on the summary of the first three parts,the fourth part puts forward the writer’s own views on the “prudent” standards in the field of real estate trust investment and related legislative proposals on the basis of all the problems reflected.From the perspective of ensuring the trustee’s investment authority,the trustee is given a higher standard of care(essential qualifications,higher information disclosure obligations and criteria for investment object selection and investment ratio allocation),and finally the legal consequences for violation of the “prudent” standard in real estate trusts.