Research On The Series Case Of Definition Between Entrusting Financial Management And Loan

Entrusting financial management is a kind of financial management method in which the principal entrusts its financial assets to the trustee,and the trustee engages in the financial activities such as stocks and bonds in the securities,futures and other financial markets.This new type of investment has developed rapidly,but it has also caused many legal problems.Entrusting financial management is not a strict legal concept,and it is easy to be confused with the relationship between loan.The definition of disputes,the validity of contract,the bearing of responsibility,the validity of guarantee clauses and so on are still inconclusive,the unified judicial interpretation has not been issued,and th ere are many phenomena of ‘different judgment on the same case' in practice.Through the retrieval and comparison of related cases,this paper selects three sample cases:Tan v.Chen,Yin entrusting financial contract,Xu,etv.Yang etcprivate loan disputes,He v.JianXing Company,respectively.One of the cases identified is not loan,while entrusting financial management.Case two is ‘entrusting financial management,but it is in fact loan'.Case three is ‘loan,but actually is entrusting financial management'.There was a point of view that the entrusting financial management with guaranteed terms can be regarded as a loan relationship because the principal property of the entrustor can be recovered without loss in spite of the risk,which is not substantially different from the entrustor's loan of funds.But in fact,the nature of the relationship between entrusting financial management and loan,the subject matter,the purpose of the contract,the authority to use funds,the income and the way of distribut ion all exist significant differences,and must not be easily equated.The transfer of loans is the ownership of the capital,and the transfer of the entrusting financial management is only a certain right of control and use of the assets.For purposes,the client's purpose is not to borrow money for interest,it is up to the trustee to manage money to increase the value of the funds.The fiduciary's purpose is not simply to borrow money,but bring their own financial skills into play to increase the value of capital.To get a bigger reward,lending pursues a fixed return on principal and interest,while the proceeds of entrusted financial management bring more substantial value to asset management.On a voluntary basis,in order to promote the reasonable flow of capital,a limited recognition of the validity of the guarantee clause may be given rather than a total negation.In the trial of entrusting financial management cases,we should distribute responsibilities fairly and reasonably,pay attention to the balance of rights and interests,stabilize the financial order,and promote economic development..