Trust Classification Of The Trust Industry In The Regulatory Context Of The Trust Business

In rencent years, the trust business is becoming more favored because of its financing superiority. Trust industry has been under rapid development in China. Until December31,2011, total trust assets reached4.8trillion RMB. Obviously, this achievement would never have happened without the effective supervision by regulatory authorities. At present, China Banking Regulatory Commission devotes itself to market-adapted regulatory instruments to ensure that the business develops in an orderly way. However,the disorganization and irregular classification in this sector not only leads CBRC to a flurry but also prevents the advance of the business. Judging from the classification and supervision system of the United Kingdom, the United States, Germany and Japan and other countries, it is more scientific to base trust classification on its supervision. Concerning the failure of classification and regulatory policies, it is necessary to reclassify the trust industry, which in turn will contribute to a more effective supervision framework as well as sufficient administration of trust companies. This article categorize trust products in accordance with the status of trust property when a trust is created. On one hand, the scientific classification of trust industry may encourage trust industry to develop on a larger scale and in a more organized way. On the other hand, though improvement on existing regulatory instruments and trust property registration system,unificaition of regulatory policies and application of self-regulation,classification and supervision will grow adapted to each other,thus establishing an effective regulation system and promoting the long-term development of trust industry.Based on the research into basic concepts, theories and current categorization of turst products,after consulting well-developed alien classification and regualtion patterns,this paper presents opinions and ideas in regard to the perfection of classificaition and regulation system of China’s trust industry.