Study On The Supervision Obligations Of The Securities Investment Fund Custodian

Today,the development of the financial market is getting better and better,and the national income is gradually increasing,more and more people choose to invest and manage money when increasing their wealth.Due to its investment flexibility,low risk and low threshold of entry,securities investment funds are very important.The fund custodian,as the cornerstone of a securities investment fund,supervises the fund manager’s transactions with the fund,ensures the stable and legally compliant operation of the fund,and protects the interests of the fund’s investors.But,adapted to the present situation of the securities investment fund,the supervision obligation of securities fund custodian and civil liability is not perfect legal provisions,that is to say,fund trustee blindly chasing the interests of the fund trustee,ignored the supervision obligation of fund,the problem will escape responsibility,this is a realistic problem to be solved.Therefore,it is very important to analyze the specific reasons of the current supervision obligation of the custodian of securities investment funds.This paper points out the difficulties for the securities investment fund custodian to fulfill the regulatory obligations,and provides theoretical support for how to continuously improve the supervision obligations of the fund custodian.In addition to the introduction,the article is also divided into four parts for discussion.In Part Ⅰ,we begin with the basic theoretical aspects of the custodian’s supervisory obligations over securities investment funds,showing that the custodian’s fund supervision obligations have important functions for the overall operation of securities investment funds.Firstly,the trustee,investor,and manager in a portfolio fund form a three-party legal relationship.In this legal relationship,the investor is responsible for the subscription of the fund shares,while the manager is responsible for the investment and operation of the entire fund custodians,on the other hand,are responsible for monitoring investment behavior by supervisory authorities and protecting the legal rights and interests of investors.In this context,custodians are divided into bank custodians and securities firm custodians.However,no matter what kind of trusteeship mode,the main role of the fund custodian in the whole operation process of the securities investment fund is to fulfill the supervision obligation.Secondly,The internal management of the portfolio fund is a mutual management model with a balance of rights and responsibilities among the three parties,centered on the supervisory responsibilities of the fund custodian.Finally,the fund custodian can achieve the ultimate goal of supervising and balancing the manager and safeguarding the interests of investors by fulfilling the supervision obligations.In order to better regulate the operation of the whole fund.The second part discusses the dilemma of the supervision obligation.Three key points were extracted from the dispute over the fund’s actual operations and the regulatory responsibilities of securities fiduciaries.First,the establishment of the Foundation’s Board of Trustees depends on the selection of the manager,and the way earnings are generated depends on the size of the fund and has little to do with whether it is adequately fulfilling its supervisory responsibilities.The objectives of the trustee and the administrator are the same,that is,to expand the fund scale to get more returns,which bind the fund custodian and the manager together,thus affecting the independence of the fund custodian.Secondly,the fund custodian must fully comply with its supervisory obligations and must specify the specifics of its supervisory obligations.However,at present,another problem is the lack of clarity regarding the content of the supervisory obligation and the standards for implementing the supervisory obligation.This causes the overall content of the supervision obligation is not clear.Finally,a perfect fund custodian supervision obligation system should also include a complete accountability mechanism.There is no clear definition of the common behavior of fund custodian and fund manager in the Fund Law,and the principle of liability and exemption reason of gene custodian are not clear enough,which leads to the lack of accountability mechanism for fund custodian to violate supervision obligations.Part Ⅲ deals with the reasons for the regulatory obligations of securities fund fiduciaries.Objectively,the legal status of the custodian of the collection is unclear,the supervision and empowerment of gene custodian is insufficient,and the unreasonable restraint mechanism of fund custodian are the objective reasons of the supervision obligation of fund custodian.Subjectively speaking,the problems about the supervision obligation of the fund custodian in judicial practice are caused by the deviation of the judge’s functional understanding of the supervision obligation of the fund custodian and the dispute over whether to assume the supplementary responsibility based on the principle of fairness.The basis for the prudential obligations of securities fund depositories is distinguished on the basis of subjective and objective aspects,which laid a foundation for the corresponding improvement suggestions for the following problems.The four parts put forward some suggestions for improving the plight of the supervision obligation of the fund trustee mentioned above.First of all,in order to enhance the independent status of the fund custodian,it is necessary to reform the selection mechanism of the fund custodian and the return model of the fund custodian,weakening the interests of the fund custodian and the administrator,allowing the fund custodian to exercise its duties independently.Secondly,clarification of relevant elements,including clarification of the nature of the fund custodian’s supervisory responsibilities.Improve the scope of supervision obligations of fund custodian from legal obligations and agreed obligations.In addition to the supervision of the fund operation stage,the fund trustee should also include the supervision of the fundraising stage and the exit stage,and the agreed supervision obligation should be discussed differently according to the public offering fund and the private offering fund.Criteria for the effectiveness of a fund administrator’s supervisory obligations can be defined using “good father” theory and dynamic systems.Finally,in order to improve the accountability mechanism of supervisors,it is necessary to first clarify the common behavior mode of custodian and manager.The pattern of common behavior can be identified from the nature of the compound behavior.At the same time,the principle of accountability and the exemption of the gene custodian should be clarified,so as to enhance the motivation of the fund custodian to fulfill its due diligence.