Research On Legal Regulation Of Fund Employee "Rat Trading"

"Rat Trading", conducted by the fund employees and punished by the CSRC for the first time in the year of 2008, has gradually become another negative factor of the development of fund, after the event of Fund Conspiracy appeared in the year of 2000. "Rat Trading" is not only damage the interests of the fund shareholders, but also the credit basis in which the fund industry can be established and developed. When it comes to the whole stock market, "Rat Trading" damages the principle of fairness, the basic principle of the stock market. As the characteristic of highly frequency, "Rat Trading" should be regulated effectively. But it is worth nothing that, the existing legal system is difficult to regulate it exactly. There includes three main reasons. First of all, the nature of the "Rat Trading" has not yet reached a consensus; as a result, the further research is lack of the common premise. Second, as a provision that fund employees are forbidden to engage in security transactions individually for a long-term in china, if the employees, if employees, in violation of the provision above, engage in security transaction by using another person's security account, current regulatory system lacks the effective regulation of that kind of transaction. Third, as "proof problem" obstacle, "Rat Trading" lacks the feasibility of litigation, which makes the "Rat Trading" of the accountability mechanisms exist in name only.In response to these three deficiencies, the paper made the following suggestions for improvement.First, the paper recalled "Tangjian case" to analyze the characteristics of "Rat Trading", and on the base of investigation "fiduciary duty" concept, the paper characterized the "Rat Trading" as breach of fiduciary obligations, which defined the basic premise of the research.Second, when it comes to the issue that whether to allow fund employees to engage in security transactions, drawing on the relevant legislation of other countries (regions), put forward the concept of changing regulation method and balancing relationship between fund shareholders and fund employees.Finally, for the problem of possibility of litigation, the paper proposed to change the established framework of accountability in tort and reconstruct the behavior element of "Rat Trading", in framework of trust, and the responsibility.