Study On The Legal System Of Fund Custodian

With its unique advantage of structure and system, securities investment fund has become ideal investment tool for small and medium investors and its own also constitute an important force for the stability of the capital market as institutional investors. But behind the prosperous market there also implies the risk of damage to interest of investors by the fund managers who may conduct illegal operations and abuse power. The healthy and stability of fund market not only needs mature capital market and comprehensive regulatory system, but also cannot be separated from effective monitoring mechanism in the fund governance. Comparing to the fund holders who lack of monitoring capabilities, fund custodian with their professional knowledge and skills, can balance the power of fund manager as the protector of investor. However, as the defects in legal partnership arrangement and weakness of the power distribution, the oversight functions of fund custodian exist in name only. The trustee system also displays"trust but on care"aspect. Therefore, it is of great significance for regulation of fund industry and protection to the interests of investors that seek trusteeship innovation by studying theory of fund governance, in order to achieve effective internal supervision. By the way of empirical analysis, the economic analysis as well as comparative analysis, this paper conducts systematic research on legal basis and system design of trusteeship of securities investment fund. Drawing on the representative international fund governance experience and relative theory, this article deeply investigate the main defect of our country's trusteeship system; moreover make specific recommendations on the reform of the system.Chapter 1 is a summary of securities investment fund trustee system. First, make a concept analysis to the system and look to the root of its development. Second, discuss the trustee's legal property according to the development status of business trustee, in order to locate the function of fund custodian in the fund governance.Chapter 2 analyzes the theoretical basis of the securities investment fund trustee system. On one hand, clarifies the jurisprudence basis of the fund custodian using the theory of corporate governance as a reference; on the other hand, to the Law and Economics perspective, drawing on the theory of Principal-agent Theory and incomplete contract, analyzes the necessity of the fund custodian system.Chapter 3 makes a comparative analysis to the investment fund trustee system. First, introduce the different patterns of the fund trustee system. Second, discuss the system of director board and independent directors as well as their institutional advantages and difference comparing with fund of corporate type. Third, taking the Indian model as a typical, elaborate the introduction of independent directors which is the reform trends of the investment fund trustee system.Chapter 4 deeply elaborates the defect of our country's fund trustee system on the side of fund custodian's status, rights and obligations. Furthermore, propose a solution to improve the investment fund trustee system.