The Research On Legal Regulations Of Consumer Trust

With the development of the times,the new focus of Chinese financial industry has gradually focused on consumer finance.Various consumer financial platforms have continuously introduced new financial services and consumption mode.On this basis,trust companies have launched a product called “consumer trust” which combines a dual function of both consumption and financial management.Consumer trust allow consumers to enjoy high-cost consumer rights while investing,also meeting the interests of product service providers and trust companies.In 2013,since the emergence of China's first consumer trust product,then consumer trust products have appeared in various fields.However,under the current legal framework,there are also many controversial issues in consumer trust products.In different modes,there are also conflicts with current laws and regulations.The first chapter of this paper is mainly about the concept definition and attribute analysis of consumer trust.After introducing the concept of consumer trust,the concept definition of consumer trust is strengthened by distinguishing it from similar concepts.By analyzing the attributes of consumer trusts,it is considered that most of the forms of consumer trusts belong to a single fund trust,but the substance may be recognized as a collective fund trust by the regulatory body.And the consumer trust also belongs to the transaction management trust whose risk is small.The second chapter of this paper mainly divides the consumer trust products in the market into two categories,namely the prepayment mode and the margin mode.There is a common legal problem in both modes,that is,whether it meets the requirements of “qualified investors”.Legal regulations stipulate that the principal ofthe collective fund trust plan must be a "qualified investor" and must meet the conditions of investment amount,family financial assets or income level,but the target customers of the consumer trust are not high-income group.The crowd is the public,so in order to circumvent the “qualified investor” requirements of the collective fund trust,the trust company usually designs the consumer trust product as a single fund trust,but the supervisory institution may sign the trust company and the product service provider.An independent procurement contract points to the same object and treats it as “the same item”,meaning that it is essentially a collective fund trust that needs to meet the “qualified investor” requirements.In the prepayment mode,the prepaid card regulations are also involved.If the product service provider issues a consumer trust beneficiary certificate to form a card issuance situation,the prepaid card related regulations need to be met.There are two legal issues related to illegal fund raising and rigid redemption in the margin mode.The illegal fund-raising must satisfy the illegal,social and monetary temptation.Since consumer trust products generally sell to the public to meet the social characteristics,they mainly analyze illegality and social seduction.When the trust company only participates in the specific investment of the trust as a fund settlement channel,the product service provider raises public funds for management and operation.If the product service provider raises more funds than the value of the goods and services it sells and the product service provider When a promise is made to return the principal and pay interest,or to commit to an expected annualized rate of return,the behavior of the product service provider to raise consumer funds through the trust company may constitute illegal fundraising.The performance pattern of rigid redemption in consumer trusts is generally “guarantee insurance income”.Whether it constitutes rigid redemption depends on who bears the risk in the management and operation of trust property.If it is not for the consumer to bear the risk,it will cultivate consumers' risk awareness.In essence,it inhibits the objective existence of market risks and causes market distortions.The third chapter of this paper start from four cases under the prepayment mode and the guarantee mode.Introduce consumer trust products and analyze their legal problems through the existing consumer trust project data on the Internet,and summed up the legal issues of the prepayment model consumer trust and margin mode consumer trust under the current legal framework.The fourth chapter of this paper proposes the legal protection of consumer trust innovation based on the legal issues of the prepayment mode and the margin mode.The legal guarantee of prepayment mode consumer trust can be realized by establishing a consumer trust beneficiary voucher transfer platform and learning from the Taiwan prepayment trust system.At present,it is difficult for consumers to realize the transfer of the consumer trust beneficiary certificate.Only by strengthening the transfer of the trust beneficiary rights can further attract more consumers to purchase consumer trust products.The Taiwanese prepayment trust system which is government-issued that mandates enterprises should entrust the total amount of gift certificates that are expected to be issued as trust property to the trust company before issuing the gift certificate.When the consumer actually consumes or the trust period expires,then the trust company can get the money back.Such an approach can indeed protect consumers' rights and interests from damage,but it is too demanding for merchants.Therefore,when implanted in the mainland,it may be considered that the product service provider entrusts the trust company to operate the operation after raising the funds of the consumer in a legal form.The legal guarantee for the innovation of the margin mode consumer trust is mainly realized by strictly controlling the fund management operation entity and the risk-bearing subject of the standard margin and the refund mechanism.When a trust company manages its working capital,it may face the requirement of “qualified investors”.When a product service provider manages working capital,it may constitute illegal fund-raising.Therefore,it is necessary to strictly control the fund management and operation entities.At the same time,it is necessary to clarify that the risk-bearing subject of the deposit is the consumer.The consumer trust insurance system can be established for the problem of returning the deposit,and the consumer trust and the consumer in the consumer trust are also guaranteed by setting up the consumer trust guarantee fund.Consumer trusts under the current legal framework are subject to many restrictions on the full legal operation.For consumer trusts,it is necessary to further improve the trust legal system,not only to improve law,but also to improve the supporting regulations for consumer trusts.With the continuous development of society,financial innovation has emerged in an endless stream.Financial innovation is not only a reasonable allocation of social resources to adapt to the development background of the times,but also an impact on the regulatory system.For consumer trusts,it is necessary to strengthen the industry self-discipline of the trust industry andstrengthen the risk awareness training for investors.It is hoped that the public can better understand consumer trusts,participate in consumer trusts,encourage consumer trusts to continue to develop in China,and build a broader development space for the transformation of the trust industry.