The origin of the trust industry, in which country did the trust system originate?

The trust system originated in England and was developed on the basis of the British "Yuss system", which has been around for centuries.

The British "use system" is the predecessor of the trust system. The creation of the Yuss system can be traced back to the 13th century in English feudal society. At that time, it was customary for religious believers to donate their land to the church after death, which led to the increasing number of church land.

But according to English law at the time, ecclesiastical land was exempt from military tax. The proliferation of land in the Church meant a gradual decrease in the revenue from the state service. This undoubtedly affected the interests of the king and the feudal aristocracy.

Thus, at the beginning of the 13th century, King Henry III of England promulgated a "Confiscation Ordinance", which stipulated that anyone who donated land to a church community must obtain the king's permission, and anyone who gave or donated it without permission was required to confiscate his land. In response to this new rule, religious believers have adapted their donations. They gave the land to a third party in their will.

But at the same time, it stipulates that the church has the right to actually use and benefit from the land, which is the "Yuss system".

However, the modern trust system was introduced to the United States in the early 19th century, and the trust has developed rapidly after its introduction to the United States. At present, the United States is the country with the most sound trust system, the most abundant trust products and the largest total development.

China's trust system was first born in the early 20th century, but at that time, China was in a semi-colonial and semi-feudal situation, and the economic foundation for the survival and development of the trust industry was extremely weak, and it was difficult for the trust industry to make a difference.

The real development of China's trust industry began with reform and opening up, and is the product of reform and opening up. In 1978, in the early stage of the reform, many regions and departments had a great demand for construction funds, in order to meet the needs of the whole society for the diversification of financing methods and capital needs, in October 1979, China's first trust institution - China International Trust and Investment Corporation was born with the approval of ***. Its birth marks that China's modern trust system has entered a new era, and has also greatly promoted the development of China's trust industry.

The primitive act of trust originated thousands of years ago in ancient Egypt as a "testamentary trust". The earliest written record of a trust is a will written by an ancient Egyptian in 2548 BC, in which his wife was named to inherit the property, his son was the beneficiary, and a guardian was appointed for his son.

From a legal point of view, trusts have their roots in the Roman law system of "trust bequest". The Roman Law stipulates that when dividing property according to a will, the will may be granted directly to the heirs, and if the heirs are unable or unable to bear it, the property may be entrusted or transferred to a third party according to the trust bequest system.

The "trust bequest" in ancient Rome has formed a relatively complete concept of trust, and it has been determined in the form of law for the first time.

On an operational level, modern trusts originated from the "Euss system" in the United Kingdom.

The modern trust system was introduced to the United States in the early 19th century. Originally, as in the UK, it was also a civil trust business undertaken by individuals to execute wills and manage property. In order to promote the concentration of capital, financial trust companies for the purpose of profit came into being.

The United States was the first to complete the transfer of personal trusts to corporate trusts and civil trusts to commercial trusts.

Founded in 1822 in the United States, the New York Agricultural Fire Insurance Lending Company, later renamed the Farmers' Lending Trust and Investment Company, was the world's first trust and investment company. It can be said that the modern trust company originated from insurance, and the trust and wealth management products of the company system were first sold to the public through insurance salesmen, and finally separated from the insurance industry.

Trust has a history of 3,800 years abroad, because it is connected to the money market, the capital market and the industrial market, which can both finance and invest, and is known as having infinite economic activation. In the words of the American trust authority Thinker, "The scope of application of trust can be comparable to that of human imagination."

It has become a very common phenomenon to entrust personal property and financial assets to trust and investment companies for management abroad. In developed market economy countries, the trust industry has developed into one of the important pillars of the modern financial industry, and trust and banking, insurance, and insurance are known as the four pillars of the modern financial industry.

According to the earliest written records, the trust was a will written by the ancient Egyptians in 2548 BC. However, trusts with primitive characteristics originated from the "Euss system" in the United Kingdom, which is the birthplace of the trust industry. However, the modern trust industry in the United Kingdom is not as developed as that in the United States and Japan.

The United States established the New York Agricultural Fire Insurance Lending Company in 1822, which was later renamed the Farmers' Lending Trust and Investment Company, which was the world's first trust and investment company.

China's trust industry began in Shanghai at the beginning of the 20th century. In August 1921, the first professional trust and investment institution was established in Shanghai, the China Commerce Trust Company, and in 1935, the General Trust Bureau was established in Shanghai. From the founding of the People's Republic of China to 1979, financial trusts were not able to develop under the highly centralized planned economic management system.

In October 1979, the first trust institution in China - China International Trust and Investment Corporation was established, and since then, from the first bank to the professional banks and industry authorities, the local government has set up various forms of trust and investment companies, to the peak in 1988, there were more than 1,000, with total assets of more than 600 billion, accounting for 10% of the total financial assets at that time. Since 1999, the People's Bank of China has sorted out and rectified the original 239 trust and investment companies, and plans to merge and retain 60 of them, of which 50 have been re-examined and registered. The way to clean up and rectify this time is as follows:

On the one hand, the corporate nature of some trust and investment companies has been changed and they have been completely withdrawn from the trust market, and on the other hand, some trust and investment companies have been re-examined and registered through asset integration and shareholding reform. In the course of the development of China's trust industry, with the continuous deepening of the market economy, the whole industry has undergone five rounds of clean-up and rectification.

At the beginning of the new century, with the promulgation and implementation of the "Trust Law" and the "Measures for the Administration of Trust and Investment Companies," the trust industry has finally ushered in the spring of development, and China's trust industry is bound to play a tremendous role in speeding up the construction of socialism with Chinese characteristics and in prospering the market economy.

Around the 13th century, the "use" system appeared in England, which was the prototype of the modern trust.

In England at that time, if land was transferred to the Church, it had to be approved by the monarch and princes, otherwise it would be confiscated. In order to safeguard their own interests and avoid such risks, the believers tried all kinds of methods, and the "Yousi" system came into being against this background.

The early model of the "Youss" system was:

1. If the land is donated to the church, it is not donated directly, but first donated to a third party;

2. It must be stated that the purpose of the gift is to protect the interests of the church;

3. The third party must transfer the proceeds from the land to the church.

Later, with the feudal system.

With the complete collapse of the capitalist market economy and the establishment of the capitalist market economy, the maturation of contractual relations, the development of commercial and monetary credit, and the increasingly sophisticated division of labor, the "Yous" system gradually evolved into a modern trust.

At this time the trust, the subject matter.

With the development of money and finance, the modern trust industry began to upgrade, and modern financial trusts were born. However, the further development of the trust this time was not in the UK. Flowers bloom inside the walls and fragrance outside the walls, and modern financial trusts have been further developed in the United States and Japan.

The definition of trust, according to Article 2 of the Trust Law of the People's Republic of China, refers to the act of entrusting the settlor's property rights to the trustee based on his trust in the trustee, and the trustee will manage or dispose of it in his own name for the benefit of the beneficiaries or for specific purposes according to the settlor's wishes. In short, a trust is a property management system, in which the property owner transfers or sets up the property to the administrator, so that the administrator can manage or dispose of the property for the benefit or purpose of a certain person.

Therefore, the definition of trust mainly includes four meanings:

1. The client trusts the trustee. The trustor's trust in the trustee is the basis for the establishment of the trust relationship.

2. The settlor entrusts the property right to the trustee. Trust is a legal relationship centered on trust property, trust property is the first element of the establishment of a trust, and a trust cannot be established without a specific trust property. Therefore, on the basis of the trust trustee, the settlor must entrust his property rights to the trustee.

3. The trustee manages and disposes of the trust property in his own name. After the settlor entrusts the trust property to the trustee, it has no direct control over the trust property, and the trustee manages or disposes of the trust property completely in its own name, without the help of the name of the settlor and the beneficiary, which is an important feature of the trust.

4. The trustee manages the trust affairs for the best interests of the beneficiaries. It is precisely because the trustee is trusted by the settlor that once the trustee accepts the trust, he should handle the trust affairs loyally, prudently and dutifully, and manage and dispose of the trust property, that is, the so-called trustee's trust and loyalty. The Trust Act imposes strict liability on trustees who breach this trust.

Legal analysis: trust is a special property management system and legal act, and at the same time it is a financial system, which constitutes a modern financial system together with banks, stool insurance, and insurance. The trust system originated in England and was developed on the basis of the British "Yuss system", which has been around for centuries.

Legal basis: Trust Law of the People's Republic of China

Article 19: Clients shall be natural persons, legal persons, or other organizations established in accordance with law with full capacity for civil conduct.

Article 20 The settlor has the right to know the management, use, disposal, income and expenditure of the trust property, and has the right to request the trustee to make an explanation. The settlor has the right to inspect, transcribe or reproduce the trust accounts related to the trust property and other documents relating to the trust affairs.

Article 24: Trustees shall be natural persons or legal persons with full capacity for civil conduct. Where laws and administrative regulations have other provisions on the conditions of trustees, follow those provisions.

Article 25 The trustee shall abide by the provisions of the trust deed and handle the trust affairs for the best interests of the beneficiaries. The trustee must fulfill his or her duties of honesty, creditworthiness, prudence and effective management in the management of trust property.

Article 26 The trustee shall not use the trust property to seek benefits for himself except for remuneration in accordance with the provisions of this Law. Where the trustee violates the provisions of the preceding paragraph by using the trust property to seek benefits for himself, the benefits obtained are included in the trust property.

The birthplace of modern trusts is the United Kingdom.

Further information is as follows:

Trust refers to the act of entrusting the settlor's property rights to the trustee based on his trust in the trustee, and the trustee will manage and dispose of it in his own name for the benefit of the beneficiary or for a specific purpose according to the settlor's wishes. Trust is a kind of financial management method, but also a special property management system and legal act, and at the same time a financial system;Together with banking, insurance, and **, it constitutes a modern financial system.

Trust business is a kind of legal act based on credit, which generally involves three parties, namely, the settlor who invests in credit, the trustee who is trusted by the person, and the beneficiary of the beneficiary. In April 2022, the International Monetary Organization (IMF**) approved the establishment of a new trust to lend to low- and middle-income countries.

A trust is a credit trust. Trust business is that the settlor transfers the rights of the property to the trustee (natural person or legal person) in accordance with the provisions of the deed or will, and the trustee occupies, manages and uses the trust property and handles its income according to the prescribed conditions and scope.

Since a trust is a legal act, its definition varies considerably in countries with different legal systems. There have been many different definitions of trusts throughout history, but to this day, there is no complete consensus on the definition of a trust.

When a trust is concluded, the formalities performed to constitute a legal act are the trust acts. A fiduciary act refers to the signing of a contract or agreement between the settlor and the trustee. In addition, the making of a will by the settlor is also a legal act and a trust act.

According to different trust purposes, it is necessary to sign different contracts, but for businesses that belong to the same category and occur in large quantities, such as trust deposits, there is no need to sign contracts one by one, and only the trust department will issue a unified printing to the trustor, with text clauses, and a trust deposit certificate similar to a cherry-like contractSuch certificates also have the force of a contract.

The British Yuss system, but the British only stayed at the individual level; The U.S. applies the corporate governance structure that originated in the Netherlands to trusts, that is, the U.S. elevates trusts to the corporate level.