Research On Regulation And Legal System Of Private Equity Fund In Our Country

Private equity fund or PE, which is wildly used in finance and investment market,has played a more and more important role in our country. Compared to the thrive ofpractical part, legal system and regulating method of private equity fund is far fromsatisfaction and not efficient. Further research of on the regulation and legal system ofprivate equity fund is important for the overall industry.This paper consists of four parts, mainly focus on how to regulate and establishlegal system private equity fund in our country,The first part is over view of private equity fund. This part defines private equityfund, introduce its characteristics and sort out its types.For the essence of private equity fund, the author introduce it by comparing it topublic-rising fund and some relevant fund to clarify its concept.The second part is analysis of private equity fund legal system in United State ofAmerica and United Kingdom. After many year of practice, these two countriesdeveloped into two types of regulating method. For USA, it established a rule basedmethod. While UK choose the principle based method. These two methods are widelyfollowed by other countries.By comparing these two country’s legal system, theauthor conclude several regulatory method which our country should take and takereference of the principle based method. In the third part, the author introduce the regulatory principle for private equityfund in our country and the way to establish a legal system for overall supervision.We should widen the definition of private equity fund, revise the fund record system,make the exemption system and moderately introduce the principal-based method.The forth part analyzes the development status of private equity fundThe author make several suggestion in detail based on our country’s legal practice andmarket situation, such as how can we reference the legal regulation of privatesecurity fund and the qualified investor requirements.The author introduced the tworepresentative cases to study the value adjustment contract illegal rising problem inour country.