Study On Legal Risk Prevention Countermeasures Of Asset Management Business

The booming of asset management business has made great contribution to the prosperity of the financial industry,but some problems have arisen in the process of the prosperity.For example,rigid payment leads to a systemic crisis,channel business layer by layer nesting leads to an increase in financing costs,and the legal nature of asset management business is unknown.In order to regulate the behavior of financial institutions in the asset management business and management,asset management industry on the specification of financial institutions in the asset management business guidance,put forward to break the rigid net redemption,rein term mismatch,implementing management and necessary measures and means,such as eliminating multi-layer nested in order to strengthen the reach active management and service of the real economy regulatory goals.However,it is undeniable that the introduction of the normative document has also created new legal risks.For a long time,there has always been a dispute about the legal nature of asset management business,and the unclear nature will lead to invalid contracts and improper distribution of responsibilities of legal risks.In addition,the channel business is nested layer upon layer,but the internal responsibilities are not clearly divided,which makes it difficult to clarify the risk responsibility in the contract,and ultimately leads to the loss of financial institutions and trustee funds and properties.Secondly,in the process of breaking the rigid payment,financial institutions will also face the situation of reputation damage and risk of contract breach due to administrative penalty.Finally,the imbalance of rights and obligations between investors and financial institutions also aggravates the risks brought by their weak position,which directly leads to the legal risks of investors’ rights and interests being damaged.In order to deal with the legal risks in the asset management business,the legal nature of the asset management business should first be defined as trust relationship to solve the problem of contract invalidation caused by unclear nature.At the same time,it is defined that the fiduciary relationship can introduce the application of fiduciary duty to solve the risk of improper liability.Furthermore,the rights and obligations of the contract and the recovery mechanism should be clarified among the three parties of the channel business to prevent the financial institution and the trustee from propertylosses.In addition,the introduction of fiduciary duty can achieve the purpose of balancing the rights and obligations of investors and financial institutions,and properly allocate the rights and obligations of both parties.Finally,investors’ rights and interests are the most vulnerable and therefore need to be protected.The protection of the rights and interests of asset management products should be strengthened from the micro level before,during and after sales.Mandatory increase of the right to education of investors to enhance the vulnerable position of investors and increase the cooling-off period system to give investors the right to go back.