Review And Forecast Of Collective Money Trust--Focus On Investor Rights Protection

From the view point of the relation between financial innovations and laws, every innovation means a challenge or evasion of the existing law. The rise of collective money trust is not only a matter of new increase of the trust business, but also more the important raises a new question for discussion concerning financial market law construction. Focusing on the rights and profits of investors, this text examines collective money trust from two aspects. First it analyzes the legislation circs, the business features, thus reveals some problems existing. Second it analyzes the existences and causes of investors' rights weakening and the essential conditions of protection. It tries to find a way to ultimately solve the problem of investors' rights weakening by consummating the collective money trust legislation. In the first part, the text mainly discusses the concept and nomological elements of collective money trust and it makes comparison with similar business as mutual fund and collective assets management. This text holds a basic standpoint that collective money trust has trust as its basic legal relationship, but it is not just the same as traditional civil trust or thesimple add-up of every single trust. Collective money trust belongs to financial trust which has a financing function. Further more, collective money trust has some other special characteristics.In the second part, the text analyzes the legislation status and the business futures of collective money trust. From the view point of legislation, laws of collective money trust consists of one law, two rules and several guiding documents most of which are low level laws. And as for the content, it contains the qualification of the Trust and Investment Corporation, business rules, ways of raising money and the trust property. But generally speaking, it lacks a systematic legislation. Collective money trust develops in such a hush way under certain legal system that it has soon formed its own character but with many shortcomings.In the third part, the text fully elucidates the rights weakening problem of collective money trust. First analyze the representation, then the reason and last the necessary conditions of rights protect. That the business process of collective money trust is dominated by Trust and Investment Corporation determines the feeble status of investors who are much weaker in almost every part of the process. The major causes: the first is the legislation defect that glaringly exists in profit guarantee, way to realize the rights and risk compensation system, the second is the lack of supervision of trustee' s fiduciary duties, their conflict legal status and the last is that the investors are not mature. So the text suggests the legislation return to trust, appropriate supervision be given and both the trustees and the investors do better themselves. These three aspects are essential to investors' rights protect. In the last part, the text point out how to perfect the specific rules andsupervision system. General trust law may not be applicable for collective money trust, because our trust law is built on the civil trust and single trust. If we rigidly apply some rules to collective money trust, it may produce logical conflicts. So the text suggest specific rules and regulations be made for collective money trust. This is also the aim of the text. So the text presents some ideas of specific rules and regulations of trustee, trust property and remedies specialized for collective money trust. And also the text contributes the idea of both supervision from the authorized supervision department and the external supervision. Hope to give contribution the study of collective money trust.