The Trading Platform of the Wealth Management Business Dealt by Securities Firms-The comparison between the Trust Structure and Commission Agent Structure

When dealing with the Wealth Management affairs, in order to provide one stop shopping service, securities firms need a trading platform to parking cash and securities positions to manage the cash flow and information flow.
The purpose of this dissertation is to analyze which legal structure adopted by this trading platform, Trust or Commission Agent, is more advantage in the light of securities firms.
We tried to start from sorting out the prerequisites of the wealth management business, which are performing Know Your Customers procedure, providing Suitable Advice, and providing One Stop Shopping.
In the second stage, we analyze the business behaviors to be developed, which are essential for the prerequisites in order to proof the importance of the platform. Those are to provide one stop shopping service, to control the cash flow information, to place the assets under the omnibus account of securities firms without disclose client’s identity.
After proving the importance of the platform, we try to analyze the relevant regulations of trust basis and commission agent basis trading platform, then, to the main issue of this dissertation: in the light of securities firms, which legal structure shall be more advantage, trust basis or commission agent basis, to organize a wealth management trading account.