The Study on Financial Asset Securization and The Protection of the Investors

• Main Authors: Shu-yuan Hsu, 許淑媛
• Other Authors: JEN-GUANG LIN
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/01979224135620433705

碩士 === 國立臺灣大學 === 國家發展研究所 === 99 === Abstract “The Financial Asset Securitization Act” and “the Real Estate Securitization Act” codify the law regarding launching procedures, structures and participants of asset securitization, establishing the rules for the relevant parties to comply with. However, as elaborated by this research, constant innovation in the field of financial engineering has meant asset securitization products evolved into very complicated schemes. For instance, will rules about information disclosure and conflict of interests be able to protect investors? What will the actual influence of these rules be? Is the rating agency really functional? Moreover, how do we design the method to protect investors? By taking the subprime mortgage crisis in U.S.A. and the structured notes of Lehman Brothers as examples, we examine Taiwan’s regulations and test whether we can improve our system. As for the asset securitization and the protection of investors; it is crucial that we reduce the benefits and conflicts of rating agencies and strengthen penalty mechanisms. Further in regard to penalties, the investors might be able to apply Article 20 and 32 of the Securitization Act in R.O.C. , to request compensation from those rating agencies that produce false or unreal rating reports, such as the intent, negligent requirements or the assumptions of causality, for balancing the market rules and the fairness. Last but not least, regarding the consignment of obligations and rights, there are some systems to make public notifications by using the electric application system, to disclose to the public the forms of the obligations and rights, to improve the activities of securitization. This research focuses on how to protect investors through the framework of securitization. It is hoped that there can be some contribution to academia as well as to the market.