Research On The Legal System Of Securities Investment Funds

This dissertation tries to explore the principal conception, the basic principle, the ideology and the basic system of the Securities Investment Funds, by doing which can we strengthen the construction of the legal system of Securities Investment Funds and the protection of investors.Chapter I is about those basic questions about the Securities Investment Funds, such as its concept, characteristics, origin and functions. Generally speaking, Securities Investment Funds is based upon the principle of dispersing risks. People hand their money to few experts to invest on stocks and securities to get interests. The characteristics of Securities Investment Funds are combined investment, handled by experts and risk disperses, etc. in the modern economy, Securities Investment Funds has its own advantages, such as check and balance, devoid of defraud.Chapter II discusses the value orientations of Securities Investment Funds, i.e., the protection of the interests of funds holders from the perspectives of jurisprudence and law and economics, so as to provide basic ideological foundation for the following research. As far as the jurisprudence's concern, the protection of the interests of funds holders represents the legal justice. In the perspective of law and economics, there are some economics theories to explain why we need to protect the interests of funds holders. At the same time, the government should interfere in the process so as to decrease the risk.Chapter III focuses on the misconduct of the fund managers and the way to prevent it. Basing on the protection of the interests of funds holders, since the funds managers can breach their duties to handle the money properly, it is so important to make some prevention to gauge against it. Commonly speaking, funds managers tend to breach their bon faith duty and make some false statements. And there are some legislative suggestions here to fight against such kind of misconducts.Chapter IV compares two models of Securities Investment Funds managements; which means the contact model and the company model. After doing that, a proposal for our legislation reform is provided. Actually these two models are both existing now in our country, but on the other hand, there is very few legislation as to the latter model, which should be strengthen in the future, i.e., to improve the rights of funds holders and the duties of the funds managers.