Difference between entrusted contract and entrusted finance contract

Commissioned financial management is the principal will be its funds, securities and other assets entrusted to the trustee, the trustee will be the assets invested in futures, securities and other trading markets or through other financial forms of management, the proceeds of the two sides according to the agreement on the distribution of or the trustee to collect the agency fee for the economic activities. According to the main characteristics of the trustee, entrusted finance can be divided into financial entrusted finance and private entrusted finance.

Financial entrusted wealth management, also known as financial institutions entrusted wealth management, refers to the customer's assets to the financial institutions, the financial institutions as the trustee of the entrusted form of wealth management. In China, financial institutions engaged in entrusted financial management business are mainly commercial banks, securities companies, trust companies, insurance companies, fund companies and other five categories.

Private entrusted wealth management, also known as non-financial institutions entrusted wealth management, refers to the customer's assets to the asset management companies, investment consulting firms, general enterprises and institutions and other non-financial institutions or natural persons, by the non-financial institutions as a form of entrusted wealth management entrusted to the form of the trustee.

The entrusted financial contract is a kind of entrustment contract, also entrusted to others to deal with matters. The key to distinguish between the two types of cases is to grasp the special nature of the entrusted financial contract. The most fundamental difference between the two is the subject matter of the contract, the entrusted financial contract is limited to the entrustee on behalf of the financial management.

The subject matter of the entrustment contract is much broader. On the scope of the entrusted affairs, China's civil law has not been clearly stipulated. Therefore, as long as the civil rights and obligations of any matter, including the sale, lease, registration, approval, as well as litigation. It is generally believed that the subject of the contract of entrustment also includes the implementation of the fact that behavior, such as help on behalf of the courier. It can be seen, the scope of the entrusted affairs is very broad, in addition to the provisions of the law or public order and morals shall not be entrusted affairs, and in accordance with the nature of the affairs themselves shall not be entrusted affairs (such as the adoption of children, marriage registration, etc.), can be entrusted to other people to deal with. Therefore, the entrusted affairs for financial management, applicable to the entrusted financial management contract disputes, and should not apply to the entrusted contract disputes.

In addition, there are significant differences between the two. Specifically include the following aspects:

(1) whether paid. Entrustment contract is a traditional civil contract, the Civil Code clearly stipulates the famous contract, can be a paid contract can also be unpaid contracts. The entrustment contract is an emerging financial contract, the trustee is often a professional financial institutions, through the customer's financial management to obtain remuneration or income. (2) the establishment of the contract. Entrusted contract is a contract of promise. The entrusted financial management contract is a nameless contract, lack of direct legal basis, but is generally considered to be a practical contract, the trustee to deliver funds or securities when the contract is established. (3) whether the third party. The entrustment contract generally does not involve a third party, but in the entrusted finance contract, there is usually a third party supervisor. (4) Assumption of the consequences of entrustment. The general principle of the entrustment contract is that the principal bears the consequences of dealing with the affairs. The entrusted financial contract in the two sides often agree that the principal does not bear the losses caused by the trustee's financial behavior.