Study On Legal System Of Occupational Pension Fund Regulation

Occupational pension system is the supplement of basic pension insuranceand the second pillor of our country's endowment insurance system.Occupational pension fund is the economic basis of occupational pensionsystem .Complying with some Acts taking into effect, such as"OccupationalPension Provisional Act"and "Occupational Pension Fund ManagementProvisional Act", occupational pension fund will significantly affect ourcountry's capital market. As parts of the employee's living expense after theirretirement,pension fund seeks for steady investment payment and its firstconsideration is safety, so strict and limited regulation on it is of greatimportance.However,the market of our country's occupational pension fundhasn't full developed. The management process of occupational pension fund isvery complex and contains lots of subjects. The regulation system of pensionfund is coming into being. There is no existing pattern for the managementsubjects and regulation officials to follow. Additionally,our country's financialmarket is not fully developed and mature, how to effectively regulate thespecial fiancial product— occupational pension fund— is a question needsfurther research.This dissertation contains three parts besides preface and conclusion.In the first part, the author defines the concepts and the substance ofoccupational pension and occupational pension fund, analyzes the occupationalpension fund's legal framework, indicates that the relationship between thesponsor corporate,its employee and occupational pension tustee is trust and therelationship between the trustee and other subjects managing pension fund isagency.Then the author probes into its legal theory fundation of occupationalpension fund's trust and agency, points out that credit risk of trustees and agentswill threaten the safety of pension fund.In the second part,the author firstly analyzes the credit risk, investmentrisk and operational risk that pension fund faces . Secondly, by using the publicbenefit theory,the author explains that occupational pension fund also have"market failure",such as asymmetric information, negative externalities andmonopoly,and points out there is inherent fault in its uniqe governance structure.Thus pension fund regulation is necessary.Lastly the author explains that thepublic choice theory tells us that government regulation must have somelimitations,otherwise there will be "government failure".In the last part, in the light of the risks ,the reality and the characteristicsof occupational pension fund's development, the author suggests thatquantitative portfolio regulation draconian regulation patterns should beadopted,market access system,market withdrawal system,information disclosuresystem and investment insurance system should be built.The author alsosuggests the ideas that our country's pension fund regulation should have,suchas functional regulation and so on. Subsequently the author compares the realityof our country's pension fund regulatiaon with the ideal patterns, points out theexisting defects, for exmaple, there is some flaws in the information disclosuresystem.Then the author puts forward relative solutions and suggests toformulate Occupational Pension Act at due time.