On The Perfection Of The Protection System Of Beneficiary Rights Of Business Trusts In China After Breaking The Rigid Redemption

In the trust relationship,the trust beneficiary is the true holder of the trust property rights.Meanwhile,the purpose of establishing the trust is also to realize the rights and interests of the trust beneficiary.Therefore,trust beneficiaries play an important role in trust relationships.In April 2018,“Guidance on regulating the asset management business of financial institutions” puts forwards the bottom line to control risks strictly during transactions,ending the phenomenon of “rigid payment” in the entire asset management industry and breaking the fairy tale of “high profits with low risks” in the trust industry.As a matter of fact,the rights and interests of the trust beneficiaries have lost the protective umbrella provided by the trustee,and they must face the market risks directly.The protection of the rights and interests of the trust beneficiaries will mainly depend on the protection system of the trust rights and interests holders in our country.However,due to diverse problems such as imperfect legislations and supervision mechanism in China’s trust industry,there is a risk that beneficiaries’ trust interests will be damaged.This phenomenon will hit investors’ investment confidence and even hinder the development of Chinese trust industry.Based on the characteristics of profitability,commerciality and group nature of the business trust,this paper analyzes the current beneficiary protection mechanism of business trust in China and points out the lack of legislation of beneficiary protection.Problems exist in the trust registration system such as the objects of trust registration,the level of legal effectiveness,etc.;Besides,there shows insufficiency in the information disclosure system in terms of the information disclosure content,the information disclosure duty and civil liability and so on.In view of the problems and deficiencies,this paper puts forward some suggestions,such as improving the trust management system at the upper legal level through amending the Trust Law,adding operating trust clauses,improving the trust registration system,and improving the civil compensation liability of the subject who violates the obligation of information disclosure.