2004 amendments to the Trust Business Act

In recent years, the diversification of financial products has led to increased demand for the various functions of trust such as the function of the management and disposal of the asset, the function of the conversion of untrusted property, and the function of bankruptcy isolation. Consequently, the structure of trusts has stimulated the economy and created new financial flows in the form of market-based indirect financing. Trusts are expected to continue having important roles in many areas.

To date, entities which can operate trust business are limited to financial institutions concurrently conducting trust business, but the demand has grown for non-financial corporations to be trust functions providers providing various trust products by managing trust business, the consolidation of intellectual property rights owned by such companies, and the securitization, transfer, and promotion of intellectual property rights between industry and academia.

The growing need for such trusts prompted the amendments and enactment of the Trust Business Act in 2004, which enabled the entrusting of general asset rights including intellectual property rights. The expansion of the entities which can operate trust business also allowed the participation of corporations (trust companies) other than financial institutions.

The system of the Agents for Trust Agreements and the system of the Trust Beneficial Interest Sellers were established to expand the points of contacts for the users of trust services.

Page Top