Construction Of Internal Control System In The Subsidiary Company Of W Fund Management Company

After more than20years rapid development since the opening and reform, thesecurities investment fund industry is at a critical period of transformation anddevelopment. The original public offering fund is challenged by more and more securitycompanies, insurance asset management companies, private equity funds and the trustindustry. The new born special account asset management company as the development ofthe public offering fund asset management business is faced with a lot of potential risk ofuncertainty in the future operation. To set up a perfect internal control system is critical tothe subsidiary company of fund management companies.In this paper, the subsidiary company of W fund management company is researchedas an example. We firstly recognized its external and internal risks by PEST analyze modeland company organization structures. Secondly, it is analyzed through the COSO internalcontrol integrated framework theory to explore the five internal control elements. Finally,we constructed an integrited and effective internal control system. A perfect internalcontrol system for the subsidiary companies of fund management companies can reducethe operation risk of each link in specific customer asset management business, protectinvestor’s interests, and promote the healthy, steady development of the asset managementindustry. Moreover, it can provide practical reference for industry control legislation andinternal control standard, test the universality of the COSO internal control integratedframework theory as well.