It is not illegal to manage money on behalf of customers, but it is a serious illegal act to manage money on behalf of customers privately.

Entrusted financial management, also known as valet financial management, is a different name for the same business from the perspective of the entrusting party and the management party. Entrusted financial management refers to the behavior of professional managers who accept the entrustment of asset owners to manage assets on their behalf in order to realize the appreciation of entrusted assets or other specific goals.

Generally speaking, entrusted financial management in the securities market means that investment banks, as managers, raise and manage entrusted funds with independent accounts, invest in the portfolio of financial instruments such as stocks, funds, bonds and futures in the securities market, and realize the intermediate business of maintaining and increasing the value of entrusted funds or other specific purposes.

Entrusted financial management refers to a business in which an individual or company accepts the entrustment of a customer, effectively manages and operates the customer's assets through investment, and realizes the preservation and appreciation of the assets on the basis of strictly observing the client's entrustment wishes and ensuring the safety of the entrusted assets as much as possible. Usually people call entrusted investment between individuals and between individuals and companies entrusted financial management.

Illegal acts are also called "invalid acts". An illegal act. Acts that violate the law. Different from the objective illegal behavior, the actor is subjectively at fault when carrying out the behavior, thus infringing on the social relations protected by law. Subjective fault refers to the subjective state of intention or negligence.

According to the nature of illegality, illegal acts can be divided into criminal violations, civil violations, economic violations and administrative violations. According to the degree of harm to society, illegal acts can be divided into general illegal acts and serious illegal acts (crimes).

Article 2 of the Trust Law of People's Republic of China (PRC) * * * The term "trust" as mentioned in this law refers to the act that the trustor entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the trustor.