The Conflicts Of Interest And Legal Regulation In Securities Investment Fund

As an inevitable phenomenon in the operation of investment fund in securities, conflicts of interest bring about tremendous risks to the interest of investors. The legal regulation to conflicts of interest is the important content of securities investment fund law. This thesis dissertates the interest conflicts in securities investment fund as well as its legal regulation from four aspects:Chapter One clarifies the legal meaning, characteristics, entities and forms of interest conflicts in securities investment fund. The thesis points out that the nature of conflicts of interest is the conflicts between the fiduciary's self-interest and the interest of principal in a given fiduciary relation. Securities investment fund is a typical kind of fiduciary relation, so its interest conflicts exist between the self-interest of fund manager as well as custodian who both act as fiduciaries and that of fund acting as principal. This kind of interest conflicts takes on the traits such as objectivity, the possibility of fund damage, complexity, diversity and concealment, etc. In practice, the indirect interest conflicts that the fund manager and custodian's affiliated persons engage in transactions are far more usual than the direct interest conflicts that they participate in the deals themselves. Therefore, all countries and regions generally bring the affiliated persons of fund manager and custodian into the entities of conflicts of interest in securities investment fund. The judgment criterion of affiliation relationship is whether there are direct material interest relations between fund manager, custodian and the third party. This kind of material interest relations are mainly caused by three reasons: the relation of investment, management / labor and others. According to the different backgrounds, there are three forms of conflicts of interest in securities investment fund: the interest conflicts of affiliated transaction, fund manage fee...