1. Client.

The principal is the investor of the trust-type private equity fund.

Investors have the right to know the management, use, disposal, income and expenditure of their trust property, and have the right to inspect and copy trust accounts and other relevant documents related to their trust property.

When an investor improperly manages, uses or disposes of trust property by a trust company, the investor may dismiss the trust company and require the trust company to compensate for losses.

Since trust-type private equity funds involve higher risks, they are only suitable for investors with strong risk tolerance.

The "Measures for the Administration of Collective Fund Trust Plans of Trust Companies" clarifies that the client participating in the collective fund trust plan should be a qualified investor, and he must meet one of the following conditions: First, the minimum amount of investment in a trust plan is not less than 1 million yuan

A natural person, legal person or other organization established in accordance with the law; second, a natural person whose total personal or family financial assets exceed 1 million yuan at the time of subscription and can provide relevant property certificates; third, a personal income exceeding RMB 20 per year in the last three years.

Natural persons who are RMB 10,000 or the total income of both spouses exceeds RMB 300,000 per year in the past three years and can provide relevant income certificates.

At the same time, the "Measures for the Administration of Collective Fund Trust Plans of Trust Companies" stipulates that the number of natural persons in a single collective fund trust plan shall not exceed 50 without limiting the number of qualified institutional investors.

2. Trustee.

According to the provisions of the "Administrative Measures for Trust Companies", no unit or individual may operate trust business without the approval of the China Banking Regulatory Commission. Therefore, the trustee of a trust plan can only be a trust approved by the China Banking Regulatory Commission and obtained a financial license.

company.

In trust-type private equity funds, the trust company has the right to receive remuneration in accordance with the provisions of the trust document, but it should also assume the following obligations: (1) Duty of loyalty.

The duty of loyalty is the most basic obligation borne by a trust company. It means that a trust company must treat the trust property for the benefit of investors as its sole purpose, and must not convert the trust property into its own property, or engage in any behavior that damages the trust property.

You may not use trust property to seek benefits for yourself or a third party, otherwise the benefits gained will be attributed to the trust property.

(2) Duty of care.

After the investor entrusts the trust property to the trust company, the trust company, as the trustee, will manage and dispose of the trust property completely in its own name. The details shall be in accordance with the provisions of the trust document such as the trust contract and in accordance with the principle of maximizing the interests of the investor.

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When a trust company manages trust property, it must fulfill its duties and fulfill its obligations of honesty, credibility, prudence, and effective management.

(3) Separate management obligations.

A trust company shall manage and keep separate accounts of its own inherent property and trust property separately.

3. Beneficiaries.

According to the general trust theory, the beneficiary is the person who enjoys the beneficiary rights of the trust in the trust. The beneficiary can be the settlor or someone other than the settlor.

However, the "Measures for the Administration of Collective Fund Trust Plans of Trust Companies" stipulates that investors participating in a trust plan must be the only beneficiary, and no other person other than the investor may be a beneficiary.

In addition, all beneficiaries of the trust plan form a beneficiary meeting to decide on major matters such as early termination of the trust contract or extension of the trust period, changes in the use of trust property, replacement of trustees, etc. that are not agreed in advance in the trust plan documents.

4. Custodian.

In order to control risks, although trust assets are managed and used by trust companies, they should be kept in commercial banks with sound operations.

When a trust company needs to use trust funds based on the trust plan documents, it shall provide the custodian with a trust contract and a description of the use of the funds.

The advantage of this model is that on the one hand, it constrains trust companies to consciously operate in compliance with the law. On the other hand, when a trust company uses trust funds in violation of the law or the provisions of the trust contract, the custodian can notify the trust company to make corrections and report to the China Banking Regulatory Commission.