A Study Of The Regulation System Of Interested Party Transactions In The Mutual Fund Operation

Fiduciary Issue has been the highlight in the construction of securities market. The mutual fund, as an important part of the securities market, is facing the same issue which is mainly demonstrated in the illegal interested party transaction against the fiduciary obligation of the fund manager or investment adviser. As a result, it is necessary to regulate the behavior of the fund manager by imposing obligation on them, whose fundamental purpose is to prohibit or eliminate the factual or potential conflict of interest between the fund manager and the fund unit holders for a healthy and ordinal operation of the securities market.The dissertation includes four parts with more than 30,000 characters:In the first part, I summarize the regulation system by defining the concepts of "Interested Party" and "Interested Party Transactions", classifying the interested party transactions into such four categories as self-dealing, joint transaction, agency transaction and personal tradings and introducing the history of the regulation system.In the second part, I elicit the purposes of the system: to regulate the power of the fund manager and protect the interests of the fund unit holders. Only by doing so can we realize the function of the trust system in the aspects of the transfer and management of assets and the concentration of capital. Meanwhile I point out that we shall fully consider the balance between equity and efficiency in the establishment of the regulation system.In the third part, I analyse the harmfulness of interested party transactions and the cost and revenue of the system to prove the necessity and urgency of it.In the fourth part, I put forwards some legislation suggestions by referring to the legal systems of the main developed countries or districts in the world.