Study On The Legal System Of Family Trust Supervision In China

In April 8,2014,the "China Banking Regulatory Commission’s General Office on the Risk Supervision of Trust Companies"("circular 99th")was promulgated,for the first time,put forward "exploration of family wealth management and tailor-made asset management program for customers".It has lead the way of development on trust system in family from the perspective of supervision.In the meantime,it is clear that the definite function of trust company is “entrusted by clients and help them with money management”.This requires related companies to form a standardization of business model and explore the way of transformation actively at the same time.Circular 99 th identifies six directions for the transformation of a trust company’s business,one of which is family wealth management.Regulators believe that trusts should return to the roots of wealth management,and it will be an important area for future cooperation between banks and trust companies.The Charity Law of the People’s Republic of China,introduced on September 1,2016,is not only the legal basis for the trust company to conduct business of charitable trust,but also has a imperceptible influence on expanding the family trust business.On the December 8,2016,the Family Trust Industry Development Report in China(2016),together released by the Beijing Bank,Beijing Trust in collaboration with the Wealth Management Research Center of the Institute of Finance of the Chinese Academy of Social Sciences and the China’s Banking Research Center of the Central University of Finance and Economics,states that the size of the local trust in China is expected to reach 627.55 billion yuan by 2020.That means the family trust in China will gain vigorous development and the prospects is bright.However,the sound development of family trust cannot be separated from the effective and powerful related supervision legal system;otherwise it is difficult to promote the full play of the role of family trust and the efficient realization of its goal.In light of the current situation of family trust supervision in China,there are a lot of defects such as the lag and inadequate nature of legislation,the confusion brought about by much supervision and the flaws of trust registration system.Besides,other problems,like the difficulties of safeguarding the legitimate rights and interests of family trust clients and beneficiaries,and the lack of internal coordination of self-discipline organizations in trust industry,all have hindered the development of family trust to some extent.Therefore,It is urgent to establish a sound legal system for the supervision of family trusts in China in order to ensure that the effectiveness of full play of it.This thesis will introduce the concept and history of family trust,giving a clear definition of it.At the same time,it will explore the connotation of family trust supervision legal system.Through the analysis and interpretation of relevant basic theories and the status quo and deficiency of family trust supervision legal system in China,the thesis will show the existence value and research significance of the family trust supervision legal system.And through the investigation of related extraterritorial supervision legal system combined with the reality of our country,it will propose adequate measures to improve China’s family trust supervision legal system.The measures include improvement of relevant laws and regulations,clarification of the nature of family trusts,determination of the regulatory body,promotion of the trust registration management system,improvement of the supervision of the trustee and self-regulatory system.