Fund's Front Running And Criminal Regulation On It

With fast development of the fund industry, the Front Running in fund management company have repeatedly occurred. More and more people focus on such behavior, which has gradually become a hazard of a malignant tumor of China's fund industry. Front Running has negative effects not only on the interests of fund share holders, but also on the rule and order of the financial market. What's more, it erodes the spirt of good faith of the fund industry. Therefore, it is necessary to promote the criminal regulation on the Front Running. On the other hand, the criminal law, which rule such behavior, is not so comprehensive. The thesis here to is generally about a clear concept on Front Running and comments on the exisiting criminal law.Chapter One is mainly about the general issues on Front Running, including its concept, caused and hazards. The key point of this Chapter is the prerequisite of this thesis. In other words, there are two sorts of Front Running. The first one referes to the illegal activities of entering securities transactions due to non-public information rather than insider information. The second one refers to the illegal activities of taking advantage of funding managed by funds managers who have breach their duties.Chapter Two introduces the criminal regulations of Front Running in other countries and regions. In this Chapter, author shall comment on the criminal regulation of Common Law System, Japan and Germany. A reasonable way to regulate Front Running shall be found through such introductions.Chapter Three is the key part of the thesis. Front Running shall be analyzed in five ways, which includes orders, behaviors, legal parties, intentions and penalty. Based on the practical experiences, author shall also analyze and make comments on the Chinese Criminal Law. Generally speaking, the law which regulates the Front Running is not practical. Thus, it is actually not very reasonable.Chapter Four is the ending parting of the thesis. Author shall talk about the personal opinion on the law study and academic. From author's point of view, the law or academic concerning economics shall align with the development of business rather than making problems.