Study On Standardization Of Privately Offered Funds

Many problems exist in the running of privately offered funds or quasi-privately offered funds in China,and the potential dangers of these funds cannot be ignored.The most important task in solving these problems is to regulate and standardize the funds.The objective of this paper is to formulate a theoretical framework for standardization of privately offered funds for future legislative purposes.Chapter One is "Introduction",providing an explanation of the motivation for this paper,the objectives,methods,scope of study,and the overall structure of this study.Chapter Two is "Overview of Privately Offered Funds".Before embarking on substantive discussions about standardization of privately offered funds,this chapter first offers an overview of fundamental concepts of such funds,including basic characteristics of such a fund,comparisons with publicly offered funds,the background and development of privately offered funds,systematic value of privately offered funds,and risk analysis. It is hoped that this chapter will enable readers to acquire a basic understanding of privately offered funds.Chapter Three is "Development and Existing Issues of Privately Offered Funds in China".This paper adopts the historical analysis method.In order to regulate currently highly popular privately offered funds in a reasonable manner,it is necessary to apply the historical analysis method to uncover the reasons for the creation of such funds,analyze the path of their development,and thereby determine the reasonable structure of regulation based on the standardized method of study.This chapter therefore offers explanations and undertakes a discussion of the development process,reasons for creation,and existing problems regarding privately offered funds in China. Chapter Four is "Basic Theories for Standardization of Privately Offered Funds".There are innumerous issues relating to standardization of privately offered funds,and before studying these issues in detail,one should first describe the objective environment for standardization of privately offered funds.It is the view of the author that one must first consider the necessity of standardizing privately offered funds,and determine its urgency and importance,as well as evaluate the impact of standardizing privately offered funds on the financial market.This chapter also considers whether existing laws relevant to privately offered funds,such as the Company Act,Securities Act,Trust Act and Partnership Businesses Act,can be smoothly integrated with standardization of privately offered funds in the future.Finally this chapter proposes a strategy for standardization of privately offered funds as the central focus of this thesis.Chapter Five is "Standardizing Definition of Privately Offered Funds". The primary issue in standardizing privately offered funds is the definition of such funds.Using legislative examples from Taiwan and the United States,as well as examples of definitions previously used in China,this chapter offers a number of suggestions for standardization.Chapter Six is "Standardizing Organization of Privately offered funds". This chapter will describe the types of organizations commonly adopted by privately offered funds around the world,including funds by contract,by company,and by limited partnerships.The author also compares these different systems before offering suggestions for standardization.Chapter Seven is "Standardizing Operation of Privately Offered Funds".This chapter describes the limitations on transfer of privately offered fund units,investment subjects of such funds,scope and manner of investment,investment risk of these funds,and the distribution of gains. If units of a privately offered fund can be freely transferred without restriction after the initial issue,then they would effectively become publicly offered funds;on the other hand,a total ban on transfer would deter investors.It is therefore necessary to expressly regulate transfer of fund units.Generally investments made by privately offered funds also tend to be more flexible than publicly offered funds,and this chapter considers whether regulators should allow such complete flexibility. Finally this chapter also takes a look at investment risks and distribution of gains of privately offered funds.Chapter Eight is "Standardizing Administrative Regulation of Privately offered funds".Given the unique characteristics of privately offered funds and their differences with publicly offered funds,it is reasonable that their regulation would differ from that of publicly offered funds.Accordingly, this chapter studies and describes the principles,governmental authorities, and focus of administrative regulation of privately offered funds,as basis for standardization of administrative regulation for privately offered funds.Chapter Nine is "Conclusion",being an overall conclusion to the issues considered in this paper.It is recommended that legislative organs in China should study the necessity and urgency of standardizing privately offered funds as soon as possible,and this paper also offers suggestions for various substantive issues regarding standardization of privately offered funds.