Research On The Fiduciary Duties Of Financial Institutions’ Asset Management Business

Asset management business is an important part of China’s financial industry.However,in past practices,we have found that asset management business is at risk of becoming "shadow banking," which is not conducive to the long-term stable development of China’s financial market.At the same time,the frequent problem of fiduciary duty being neglected in the asset management industry has led financial institutions to ignore their obligations,and investors have suffered losses as a result.In addition,enhancing the fiduciary duty standards of financial institutions is of great benefit to enhancing their reputation and has a positive significance for the sustainable development of the entire industry.The introduction of the "New Asset Management Regulations" appears to confirm the fiduciary duties of financial institutions in asset management business,but in reality,it focuses on preventing systemic financial risks rather than protecting the rights of investors.This approach is difficult to fundamentally prevent financial risks and can only delay their occurrence.The reason is still that the issue of fiduciary duty has not been actually resolved.In order to protect the interests of investors and promote the healthy development of the asset management industry,it is necessary to standardize the fiduciary duties of financial institutions in asset management business.This requires analyzing the internal composition of fiduciary duty,that is,exploring the characteristics of fiduciary duty from the perspective of distinguishing it from other legal relationships.Ultimately,multi-level legal regulations need to be jointly governed to explore a complex upper-level regulatory path,so as to shape an orderly financial rule of law.The first section provides an overview of the current state of fiduciary duties in China’s asset management business and fundraising stage for financial institutions.It starts by discussing the core concepts involved in the article,explaining the necessity of fiduciary duties for asset management businesses and setting the stage for exploring how they should be improved in this field.Next,it examines the legal attributes of asset management businesses and concludes that the intrinsic legal attributes of these businesses should be considered as trusts,setting the tone for the whole article.It then elaborates on the evolution and development of China’s asset management industry and identifies the existing problems,laying the groundwork for finding ways to improve the fiduciary duty rules in asset management.The second section delves into the main topic,discussing the specific content of financial institutions’ fiduciary duties during the fundraising stage.First,it analyzes the logic behind the generation of fiduciary duties for financial institutions in asset management businesses from a theoretical perspective.Then,it differentiates and introduces the duties of loyalty and care separately.Finally,it illustrates how financial institutions should fulfill their fiduciary duties during the fundraising stage of asset management businesses from a practical standpoint.The third section presents an analysis of foreign experiences,selecting typical countries from the common law and civil law systems.Since the concept of fiduciary duty originated in the UK and the US and was innovated in Japan,the focus is placed on the relevant regulations in Japan and the US.By comparing their differences,the section aims to find reference experiences for exploring the localized application of these duties.The fourth section attempts to address the issues concerning fiduciary duties during the fundraising stage of China’s asset management business in a comprehensive manner.It first identifies the deficiencies in China’s current laws and proposes suggestions for improvement.Then,it supplements and improves the content of fiduciary duties for financial institutions during the fundraising stage.Finally,it matches the fiduciary duty content with the legal application foundation,aiming to clarify the legal responsibilities that financial institutions should bear and protect the interests of investors.