The Research On Regulation Of Illegal Activities Of Fund Managers

Fund manager is the employee, who disposed the management of fund asset and the operation affair directly and indirectly. He and fund owner as well as fund trustee is the contract relation. Meantime fund owner have strong dependence on fund manager, that they are unequal. In the legal, fund manager is onerous of trust and diligency. Due to asymmetrical information, the conflict of interest, fund manager's moral risks existing in fund operation, there is more and more phenomenon that some fund managers abused their rights and privileges involved in related transaction. It mainly showed on that building on "Mouse Warehouse", transfer for fund manager's profits, disclosure on illegal activities'information etc, which harm seriously fund and the securities marcket, even the macroeconomic and social stability in recent years. Thus the law must restrain the fund manager in violation of regulations or codes of conduct. Nowadays there are various of systems, strict administrative controls and detailed legal responsibility in Chinese legal system, aimed at fund manager's illegal activities.However, our laws have still many lacks about fund manager's illegal activities as follows: legislators haven't yet enough recognition about fund manager's illegal activities and too rigescent control about illegal activities. Also the existing legal controls developed in a disordered and immature market, with single management measures and incomplete civil action etc. Ref to the legal regulation about fund manager's illegal activities in USA, Japan, Hongkong and Taiwan, China should perfect legal system about fund manager's illegal activities in two way. On the one hand, it's the restriction about fund manager's illegal activities,included strengthen administration's wardship and punishment as well as perfect with civil action and civil liability. On the other hand, it's leading to fund managers' profit-making impulsion,included the legal system by loosely and tensely and setting up fund managers' incentive system. Only continually perfected with the system of fund managers' illegal activities, Chinese fund industry would be steadily developed and Chinese capital market would be growed up healthily.