Study Of The Legal System Of The Financial Holding Company

In　the　20th　century,　the　financial　industry　in　the　world　went　through　primary　universal　operation　stage　--　separate　operation　stage　--　developed　universal　operation　stage.　In　1929,　the　serious　economic　crisis　caused　by　the　financial　crisis　broke　out　in　USA,　universal　operation　system　was　considered　to　be　one　of　the　roots　of　the　trouble　of　the　financial　industry.　Then　in　1933　USA　passed　,　defined　the　principle　that　banking　and　securities　business　were　separated.　This　law　had　not　only　established　the　basic　pattern　of　American　financial　separate　operation　since　1930s,　but　also　influenced　many　other　countries　of　the　world.　With　the　aggravation　of　competition　since　the　seventies　of　the　20th　century,　universal　operation　financial　institution　offered　multi-directional　service　to　global　customer.　Countries　operated　separately　gave　up　the　separate　operation　one　after　another　in　the　past　and　turned　to　universal　operation.　US　Congress　passed　<　Financial　Service　Modernization　Act　of　1999　>　in　November　of　1999,　it　abolished　article　20　(forbid　the　commercial　bank　to　amalgamate　with　securities　organization)　and　the　article　32　(the　personnel　of　the　commercial　bank　and　investment　bank　can't　hold　a　part-time　job),　took　the　universal　operation　mode　--　financial　holding　company　(FHC).　This　text　have　carried　on　evaluation　and　analysis　to　financial　legislative　background　of　FHC　of　USA,　Japan　and　Taiwan,　especially　investigate　history　and　reality　of　China's　financial　industry　management　system　on　this　basis,　point　out　that　the　finance　system　of　China　should　go　with　the　tide　of　historical　development,　reform　in　time,　take　the　measure　of　FHC　of　the　finance.　Article　take　the　comparative　analysis　method　mainly　on　the　issue　that　FHC　of　the　finance　is　relevant,　hope　to　use　the　advanced　legislative　experience　in　the　world　and　legal　rule　for　reference,　promote　to　the　legislation　of　our　country.　　In　chapter　one　the　author　recommends　with　universal　operation　basic　conception　to　probe　into　at　first,　then　introduces　history　of　the　management　system　of　financial　industry　at　the　same　time.　The　author　has　introduced　three　kinds　of　typical　forms　of　financial　universal　operation　at　present:　Germany　universal　banking　mode,　parent　company　and　subsidiary　company　management　mode　of　UK　and　financial　holding　company　mode　of　USA,　and　has　compared　the　quality　of　three　kinds　briefly.　The　FHC　is　a　management　mode　implemented　in　USA,　Japan　and　Taiwan　mainly.　Because　the　subsidiary　has　independent　status　of　a　legal　person　and　system　of　firewall　inside　the　group,　compared　with　the　universal　banking　mode　of　Germany,　FHC　is　easy　to　supervise,　can　subdue　various　kinds　of　risk,　though　business　efficiency　limited.　Chapter　two　introduces　FHC　legislation　and　practice　in　USA,　Japan　and　Taiwan.　In　1997　Japan　went　through　"Finance　Holding　Company　Law　of　Reorganizing　and　Outfitting",　USA　passed　"Financial　Service　Modernization　Act"　in　1999　,　In　2001　Taiwan　established　"Finance　Holding　Company　Law　".In　this　chapter　the　author　recommends　legislative　course　of　three　countries　and　legislate　the　main　content　separately　at　first,　then　in　section　four　analyzes　the　peculiar　systems　of　FHC　,　such　as　definition　,establishment　,　supervision　system　,　firewall　,　enhanced　obligations　of　the　FHC　.　The　definition　about　the　FHC,　has　introduced　the　definition　of　the　Financial　Conglomerates　by　BIS　(The　Principle　Documents　of　Supervision　of　Financial　Conglomerates),　the　definitions　of　FHC　in　USA　and　Taiwan,　has　analyzed　the　domestic　scholar's　theory,　thinks　that　the　definition　of　FHC　of　Taiwan　is　worth　our　country　drawing　lessons　from.　In　the　respect　of　establishment,　various　countries　have　dispelled　the　obstacle　that　FHC　sets　up　legally.　On　market　access　,tax　system　,　in　order　to　reduce　inconvenient　and　cost,　various　countries　have　offered　the　special　arrangement　different　from　the　general　company　to　the　establishment　of　FHC,　this　　reflecting　the　encouraging　legislative　posture.　With　the　appearance　of　FHC,　traditional　financial　supervision　get　the　severe　challenge,　then　the　theory　of　function　supervision　arises　at　the　historic　moment,　producing　two　kinds　of　supervision　modes:　Britain　unity　supervision　and　American　umbrella　supervision.　The　author　combines　the　supervision　principle,　basic　method　and　supervision　practice　of　USA　and　the　financial　group　in　BIS.　Firewall　is　regulations　which　financial　institution　engaged　in　different　business　setting　up　several　prohibitive　restrictions　for　different　financial　institution.　It　regulates　specifically　purpose　of　preventing　risk　of　financial　institution　from　transmit　and　prevent　conflict　of　interests　between　different　financial　institution.　The　general　firewall　refers　to　the　prohibition　or　restricted　system　that　the　information　flow　between　the　related　organization　including　four　respects　mainly:　1,　firewall　of　information;　2,　firewall　of　the　personnel;　3,　firewall　of　the　business;　4,　firewall　of　the　fund.　Enhanced　Obligations　of　FHC　means　FHC　has　obligation　to　help　subsidiary　institution　when　it　lacks　financial　capital　or　offer　special　organization　such　as　deposit　insurance　compensation　for　its'　loss　on　the　financial　subsidiary　company'　bankrupt.　The　advantage　of　this　is　that　control　result　may　be　better,　supervision　cost　reduces　to　a　certain　extent　at　the　same　time　for　that　FHC　has　undertaken　the　supervision　obligation　to　the　subsidiary,　the　financial　information　to　the　subsidiary　of　holding　company　is　more　abundantly　than　that　of　the　regulator.　Certainly　this　has　broken　through　the　principle　of　the　traditional　limited　responsibility　of　legal　person,　and　need　to　solve　a　lot　of　technological　problems　and　legal　problems.　　Chapter　three　of　this　text　has　analyzed　the　developing　history　and　current　situation　of　FHC　in　our　country,　and　has　introduced　FHC　of　different　types　existing　in　practice.　FHC　in　our　country　has　the　following　several　characteristic　at　the　present　stage:　1,　at　the　starting　stage　when　there　are　no　laws　to　abide　by;　2,　set　up　at　will,　supervise　scarcely;　3,　management　without　order,　the　inside　transaction　confused.　Because　of　the　legislating　blank,　there　contains　risks　in　FHC'　management　now.　The　author　proposes　that　only　by　accelerating　legislating　could　promote　the　FHC　to　develop　in　a　healthy　way.　　In　chapter　four　the　author　reviews　the　legal　system　of　drawing　lessons　from　international　finance,　discuses　several　basic　aspects　on　legislate　　of　　FHC　in　our　country　,　puts　forward　　author's　view,　including:　legislative　style　of　the　FHC;　market　access　of　FHC　and　business　scope;　regulator　of　FHC;　risk　supervisory　system　of　FHC.　In　the　part　of　risk　supervision　system　,　suggests　the　principle　and　supervision　method　of　BIS　as　the　foundation　,　takes　the　relevant　system　and　experience　of　USA　and　Japan　,　Taiwan　for　reference,　puts　forward　some　suggestions:　1,　Strengthen　the　supervision　of　the　financial　sufficient　rate　of　capital;　2,　Set　up　the　early　warning　mechanism　of　risk;　3,　Rigorously　regulate　the　relation　between　the　parent　company　and　subsidiary　company　inside　FHC;　4,　Set　up　effective　firewall　system;　5,　Set　up　the　information　announcing　system　of　FHC.