Brief Analysis On Protection Of Beneficiary Of Specific Asset Management Business

The revised Pilot Measures for Specific Customer(s) Asset ManagementBusiness by Fund Management Company, effective as of November1,2012, hasbroadened the scope of specific customer(s) asset management business with allowingsubsidiaries set up by fund management company to engage in the specific assetmanagement business. Such business，unlike traditional specific customer(s) assetmanagement business engaged in by fund management company， stretches acrossthree areas of monetary market, capital market and industrial investment. Therefore, itis of positive and realistic significance to discuss to build a protection system forbeneficiary of specific asset management business with grasping the principal line ofbeneficiary protection for promoting orderly development of specific assetmanagement business and guarding against financial risk. With a view to this startingpoint, this thesis, through analyzing specific asset management business in PRC, putsforward targeted measures and suggestions for perfecting beneficiary protection forthe purpose of discussing the effective approach to protect the beneficiary’s rights andinterests of specific asset management business.In the first two chapters, the author places particular emphasis on theoreticallycomparative study for the purpose of providing theoretical foundation and generalbackground for further in-depth study. In the first chapter, the author briefly analyzes the specific asset management business and explains basic conception, factors,classification of specific asset management business and targets allowed for engagingin specific asset management business with focusing on analyzing the legal nature andlegal relationship of specific asset management business. In the second chapter, on thebasis of analyzing the nature of specific asset management business in the first chapter,the author conducts a theoretical analysis on beneficiary protection of such business,and expounds the necessity and legitimacy of protection of beneficiary’s rights andinterests for the purpose of building theoretical foundation which can be learned fromfor further discussing on taking feasible measures to protect beneficiary’s rights andinterests of specific asset management business.In the third chapter, the author conducts an empirical analysis on the currentsituation of beneficiary protection of specific asset management business based on thedevelopment status of specific asset management business. Since the specific assetmanagement business is a kind of trust business with Chinese characteristics, and thetime for subsidiaries of each fund management company engaging in specific assetmanagement business is less than a year, this thesis analyzes the existing problemswith beneficiary protection of specific asset management business from differentaspects, such as internal governance, asset manager and asset custodian. In addition,this thesis, through analyzing the external regulatory environment and system, pointsout the significance of sound external regulatory system in the compliant developmentof specific asset management business and protection of beneficiary’s rights andinterests.In the fourth chapter, in accordance with the existing problems with beneficiaryprotection of specific asset management business pointed out in the third chapter, theauthor discussed some countermeasures for perfecting beneficiary protection and putforward some concrete suggestions from the aspect of regulating tunneling behaviorof asset managers, strengthening the supervising ability of asset custodians andstrengthening in advance, in the course and afterwards safeguard measures aimed atbeneficiary protection. In the meanwhile, considering the current situation ofinadequate external regulation on specific asset management business and from the aspect of strengthening government regulation and conducting self-disciplinarymanagement, the author suggests promoting legislation work to make up for thedeficiency in the legal system so as to perfect legal system of specific assetmanagement business and strengthen the legal protection of beneficiary’s rights andinterests.