Regulation Of Private Equity Funds Research

Since the world’s first private equity investment company (ARD) since its establishment, has been nearly70years. Private equity fund after nearly70years of development, has become the bank credit and public equity market financing the third largest financing instruments, its world economic development and technological progress have had a significant impact. Private equity fund of a late start, but in recent years the rapid development of the situation preached.However, with the rapid development of the private equity market in stark contrast, the regulation of private equity funds is quite lag. Specifically, reflected in the following aspects:First, the theoretical and practical circles for whether or not to regulate private equity funds are still no small controversy. Although most scholars and practitioners in favor of private equity fund regulation, but there are still some scholars have pointed out, private equity funds unlike mutual funds, for it does not require special regulation. Second, the private equity fund regulatory body uncertain. All along, the private equity fund regulatory body is more confusing, in practice mainly by the Development and Reform Commission, Ministry of Commerce, China Banking Regulatory Commission, the Commission and other departments bulls supervision. This will inevitably result in regulatory gaps and regulatory crossover phenomenon exists. Third, China’s private equity fund regulation contents are not clear. What exactly should be regulated and what content can be exempted from regulation, these laws and regulations are not clearly defined. Fourth, China’s private equity fund regulation unreasonable manner. At present, China is only one way this regulatory filing system, obviously, is not conducive to China and healthy development of private equity funds.Regulation of private equity funds for the above-mentioned problems, the following aspects should be focused on improvements:first, to remove make private equity fund regulation ideological obstacles. Whether from market failure theory, private equity funds for potential risks, or from protecting the interests of investors, to ensure that the private nature of private equity funds, the ongoing monitoring of private equity funds are very necessary. Secondly, it should be on our existing private equity fund regulatory body to perfect. Both our private equity funds to clear external regulatory body, but also to clear our private equity fund’s internal oversight body. Third, we must clear our private equity fund regulatory elements. In particular, private equity funds to clear the stage and the establishment of the fund-raising stage which content should be included within the scope of regulation. Finally, private equity funds improve our regulatory approach. Establish a monitoring system to record mainly to regulatory approval system and supplemented by subsequent administrative penalty of regulation.