Legal Regulation Of Operators Of Collective Investment Scheme Involve In Related Transactions

Security investment fund serves as a collective investment scheme(CIS) vehicle for a wide range investment opportunity. However, deficiency of regulation exposes with its development. There is more and more phenomenon that operators of CIS abuse their rights and privileges involve in related transaction, which harm investors'interests in recent years. Failure to effectively supervise operators'activities may result in damage to investors , and more generally a loss of public confidence in security market.This paper first distinguishes the character of related party as well as related transaction, and finds out the reason of such transaction. Next there is a summary about the differences between our legal regulation and regulation overseas. Suggestion is made under the legal framework. At last the author expatiate how to optimize the regulations on operators of CIS from three respects. China Security Regulatory Committee is an outside regulatory party, it can supervise managers by qualification sanction. Internal regulators include trustee and meeting for investors. Fund's investors rely upon operator to manage their funds and to act in the best interest of investors ,it is therefore important the operators of CIS adhere to high standards of conduct. The second respect lies in such standard, including professional standard and moral standard. The third respect is relief methods for fund managers'related transactions. Such as giving lawsuit rights of unit holders and fund industry united examination and investors'insurance.It should be noted that the regulation does not seek to endorse one particular approach, nor does it intends to impose obligation upon only one single party. The author assist that investment fund is an expert financing vehicle, too much restriction will do harm to their creativity. Besides, other parties should fulfill their correspondent duties in fund legal relationship. This paper is a research on regulation of operators of CIS from an point of views- about related transactions,it is hoped that development of regulation will enhance cooperation among parties in fund and other investment management industry, united examination and fund's insurance may be a try.