Legal System Of The Supervision And Regulation Of Investment Fund

Inside stories of a plot in the fund industry frequently occur, which seriously harms the interests of fund investors and endangers the normal development of fund industry. These phenomena are enough to embody the weak regulation of China's investment fund. Because fund keepers cannot restrain themselves from chasing self-interests, governmental regulation must be strengthened. With the development of investment fund in the world, China's fund industry has also experienced rapid development. Although China's fund regulation has been strengthened, it cannot meet the new demands of fund development so that the regulation tends to be passive and out of date. At the same time, law scholars have not paid much attention to the research work of fund regulation. Most of the research achievements are shallow and sporadic. Hence, the author of this paper tries to focus on the problems of fund industry, set up the theories for China's fund regulation, and bring forward some suggestions about how to perfect the regulation work of investment fund. The framework of this paper follows the logic order of pandect and individual theory and the whole paper can be divided into six parts: the first two parts can be classified as general principles, the aim of which is to specify the theories of fund regulation; the latter four parts can be classified as individual theories, the aim of which is to innovate the legal systems of fund regulation.Firstly the author analyzes the theories of investment fund and the regulation of investment fund, on which the whole paper will be based. After analyzing the basic characteristics of investment fund, the author categorizes investment fund and explains the functions of investment fund. In order to make the category of investment fund clearer, the author differentiates investment fund and the related concepts, ascertains the legal relations of investment fund, and then retrospects the development history and predicts the future of investment fund in China. After analyzing the basic theories of investment fund, the author tries to establish the fundamental principles of the regulation of investment fund, which could provide some references for the theoretical research and practical operations in the future. The author also discusses the theories for the regulation of investment fund from the perspective of law and economics in order to safeguard the justification, rationality and right direction of governmental regulation of the fund industry.After analyzing the legal systems for the regulation of investment fund in other countries, the author examines China's counterparts from the perspective of scientificity and rationality. And then the author puts forward some suggestions about how to perfect China's regulation of investment fund: defining the role of government in the regulation of investment fund, setting up cooperative mechanisms among different regulatory departments, strengthening the functions of self-discipline organizations and perfecting the legislative work concerning the regulation of investment fund.After studying the fundamental theories of fund regulation, the author goes on to deal with the following institutions: regulation of market access and related trade concerning investment fund, the institution of independent directors working for investment fund, and the institutions concerning the disclosure of information. In these research efforts, the author has paid much attention to the combination of theories and practices. That is to say, the persuasion of theories and the application of practices are equally important.The regulation of market access concerning investment fund includes such contents as common theories of the regulation of market access, basic components of the regulation of market access, disadvantages of China's counterparts and the ways to overcome these disadvantages. The author points out in this paper that the regulation of market access concerning investment fund should include the following contents: market access of investment fund itself, market access of the regulators, market access of fund trustees and the access of foreign investment fund. The reform of China's market access system concerning investment fund should be carried out in the following direction, namely, lower requirements for the access of investment fund, diverse market participants of investment fund, definition of the qualification of fund managers, specification of the market exit systems and coordination of governmental roles and market.As for the regulation of related trade concerning investment fund, the author focuses on the following: the common theories, the regulation modes of related trade concerning investment fund, and the suggestions about how to perfect the regulation of related trade concerning investment fund. China can follow U.S. mode to perfect the counterparts: defining the scope of related persons, establishing the shying-away systems while perfecting the institution of independent directors, perfecting the institution of information disclosure, exerting the supervision rights of trustees and gradually perfecting the remedial institutions.As for the institution of independent directors concerning investment fund, the author focuses on the values and reforms. This institution is quite different from the so-called institution of independent directors so it needs to be studied separately. The validity of such an institution shall not be overlooked. China's current institution of independent directors concerning investment fund has many defects and it needs to be perfected in the following areas such as the payment of these directors, the right and duty of these directors and the supervision by the society at large.Contents of the institution of information disclosure concerning investment fund mainly includes the basic theories, fundamental principles, analysis of the status quo and suggestions. The author points out that the compulsory disclosure of fund information is beneficial to the maintenance of investors'confidence and the fulfillment of public interests. The theories of valid market and information asymmetry are important foundations for the disclosure of fund information. The disclosure of such information shall follow the principles of materiality and formality. The principle of materiality mainly implies the authenticity, veracity, integrality and timeliness of information disclosure. The principle of formality mainly implies criterion and legibility of such information disclosure. China's information disclosure system concerning investment fund has some defects, so we should try to perfect the legislation work, bring the internet into play when spreading information, strengthen the execution of such regulations concerning fund information and enhance the educational work of fund managers and investors in order to improve their legal thoughts and investment ability.