| As an inevitable phenomenon in the operation of securities investment fund, conflicts of interest mainly consist of affiliated transactions and accrued fund management fee which impose tremendous risks on the interest of investors. Therefore, the legal regulations of conflicts of interest by investment fund manager are important contents of securities investment fund law. The article is divided into four chapters to illustrate this topic:The first chapter is a summary on the investment fund. The definitions of the fund in different countries, the relevant participants and their legal status are introduced in this part.The second chapter discusses the general issues relating to the conflicts of interest by the investment fund manager. According to the trust law, the fund manager shall have the duty of loyalty to the fund. The conflicts of interest by the fund manager are the specific performance of violating such duty, resulted from affiliated transactions and the fund management fee.The third chapter explains the legal regulations of affiliated transactions. In the first two sections of this chapter, the author comparatively analyzes the definition of "affiliated persons"as well as legal regulations of principal transaction,joint transaction and agency transaction in different countries and regions, and makes some suggestions in the last chapter according to the current developments of Chinese fund legal system and real cases by learning lessons from the practice and experiences of American mutual funds: Firstly, this paper enumerates the types of affiliated persons and defining the scope clearly, paralleling to the American fund legal system. Secondly, it discusses the regulations and policies which prohibit the affiliated transactions among principals as well as appropriate exemptions. In most cases, most affiliated transactions will erode the interest of investors, except several ones which may promote their benefits in some situations. In the view of the negative and positive influence of affiliated transactions, we shall prohibit most of them, and meanwhile make a difference to some of them.The forth chapter analyzes the legal regulation of accrued fund management fee. First, the author emphasizes the necessity of the legal regulation to fund management fee, and points out the deficiencies of the present Chinese fund legal system by studying some real cases. Then the author makes some legislative proposals about improving the regulations of fund management fee in China, such as:Performance pay system should be rationalized to change the former pattern which is not responsible, adding some exceptions about suspending gaining fund management fee and the fund manager should assume the duty of loyalty in the fund management fee.
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