Corporate Bond Trustee Research On The Improvement Of Legal System

The scale of China’s bond market continues to grow,and investors are becoming more and more enthusiastic about bond investment.However,as the pace of economic growth began to slow and faced downward pressure,the problem of bond defaults exploded.In order to preserve the rights and benefits of bond investors,help bond investors understand how to invest correctly,enhance investors’ ability to understand the characteristics and laws of the bond market,continuously improve investors’ awareness of risks,and comply with laws and regulations way of defending rights.In the past two years,the government and regulatory agencies have implemented various legal and policy measures.It shows the increasing attention to the formulation of the legal system of the corporate bond trustee.With the promulgation of the Securities Law in 2020,the legal status of the trustee has been formally established,laying a solid foundation for its market-oriented behavior in dealing with bond defaults.In order to adapt to the revision of the relevant content of the“Securities Law”,in2021,the China Securities Regulatory Commission will revise the provisions on the content of the trustee in the departmental regulations“Administrative Measures for Issuance and Trading of Corporate Bonds”.In January 2022,the Securities Industry Association issued the revised three major industry self-regulatory documents for trustees and came into effect.The legal system for trustees is improved,which can better adapt to the characteristics of the current bond market,better handle practical issues,and promote awareness of bonds.Protection of the interests of the holder.The legal system of corporate bond trustees is becoming more and more standardized,but after all,it started late and the capital market is relatively immature.The legal system of trustees also faces some practical problems and difficulties that are difficult to reconcile.At present,the legal basis of the trustee is ambiguous,the rights and responsibilities are not equal,the conflict of interests is serious,and the coordination with the bondholders’ meeting system is not smooth.For the current legal system of trustees in my country,it is necessary to introduce advanced concepts and practices from outside the territory.Whether it is the civil law system or the legal provisions or precedents of the corporate bond trustee in the common law system,it is worthy of our country’s reference and reference.Therefore,it can be studied from several aspects.First,the requirements for the appointment of corporate bond trustees.On the one hand,certain institutions should be prohibited from entering.Realize diligence and due diligence;second,strengthen the protection mechanism for investors,the trustee system cannot fully handle the issue of bond defaults alone,and the proper handling of defaulted bonds also needs to mobilize the bondholders’ meeting system,out-of-court restructuring system,and defaulted bonds.Co-operate and cooperate with the trading system,etc.;thirdly,the conflict of interest shall be listed in detail,and the prohibitive provisions shall be clearly specified,so that the trustee shall have evidence to follow,and shall avoid offending as much as possible;Accountability for behavior is a powerful and effective means to ensure that corporate bond trustees operate in accordance with laws and regulations.By learning from overseas experience and taking full account of the development status of my country’s bond market,the legal status of corporate bond trustees will be determined as a relevant stakeholder.Mandatory provisions are made on the performance of duties by the trustee,and the remuneration of the trustee is increased to improve the relationship between the trustee and its responsibilities.Serious conflict of interest is an unavoidable problem in the legal system of the trustee.In order to alleviate this problem,the scope of the trustee can be appropriately adjusted,a firewall mechanism can be established,and a third-party platform can be established.transactions,etc.In addition,it ensures that the development of the trustee system and the development of the bondholders’ meeting work system can be smoothly connected,strengthens the self-protection of the rights and interests of trustee institutions,and clearly distinguishes the specific rules for the assumption of legal liabilities.The above measures will surely jointly promote the improvement of the legal system of my country’s bond trustee.Bond market and bond supervision are making continuous progress towards a more market-oriented and legalized path.Regulators attach great importance to the issuance and management of bonds,and have successively issued a series of policies.At the same time,investors have become more mature and learned to protect their legitimate rights and interests in accordance with the law.In the development process of the bond business,the status of the trustee has been continuously determined,and has gradually become an important role in bond management.