Analysis On Behavior Of Securities Practitioners In Trust Management

In recent years, Chinese financial market has gradually advanced. With innovations of financial, enterprises as well as individuals are increasingly relying on trust management to manage their ever growing assets. However, assets management scales grow in similar trend due to the ineffective regulations on this field thus inefficient supervision from government agency. These unfortunate events have opened this industry to risk, forcing agencies that provide service to reconsider. Some believed that employees of these companies are the key as they are directly involved in the management. In this presented paper, discussions will focus on behavior of the employees. This includes fulfillment of contract terms between agent and client, potential misbehaves and their consequences and impacts etc. This study is aiming to formulate and present a feasible amendment to current regulations to scrutinize the behavior of employees in trust management though exploring relevant theories such as principal-agent theory, contract theory and asymmetric information theory.This paper started by discussing current misbehaviors of local financing agency. Referencing experience from American professions the paper later analyzed local issues and presented solutions from three aspects. First of all, implement relevant legislations and regulations. This includes defining explicitly legal status of financing agency, that explicitly clarifying contractual relationship between management agency and client, and that setting up specific regulations for the industry. Secondly, set up regulatory bodies to supervise financing agencies, including setting up a clear governmental regulatory body, clarifying government regulatory responsibilities, strengthening the supervision and strengthening the financial risk control. Thirdly, implementing enterprise management system. including establish a reasonable mechanism for the distribution of profit, to strengthen the management of securities practitioners jobs, to strengthen the securities of occupational education, and to strengthen integrity cultural construction.