Discussing The Consummation Of The Information Disclosure Legal System Of The Security Investment Fund

The investment fund as one kind of financial investment tool with the advantage of relying on experts to manage finances, the combination investment, the disperse risk has obtained the rapid development in the whole world. Now, it has spread all over the world. China's fund industry started from the beginning of 1990s, prevailed from 1992 to 1993, and once developed to the certain scale. As a organization investor, the security investment fund may improve the structure of our stock market, and can balance the investment value orientation of the stock market. Its development is advantageous to impelling our country's capital market to move towards maturity and perfection. However, in the process of the fund developing, it exposed many problems. Fund manager operated the market, carried on inside transaction as well as the information disclosed is not in accordance with the facts and so on. These seriously harmed the investor's benefits, and seriously harmed the investor's confidence to the fund management. The fund industry once felled into the faith crisis. From 1997, our country has promulgated lots of laws and regulations one after another about the fund information disclosure. It initially formed the mechanism of security investment fund's information disclosure. However, these laws and regulations are far from perfect. The problems about the security investment fund's information disclosure are very prominent. How to strengthen the information disclosure, and how to protect the investor's right to be informed sufficiently? In his article, the author introduced the rationale of the information disclosure system, and revealed the content and the form of the disclosure now available under the present legal system, and then discusses the problem that present standard have, finally submitted the suggestions to perfect the information disclosure system. This thesis includes four parts:Partâ… : mainly introduced the definition of the security investment fund and it's legal relationship. In the section one, the author clarified what is the security investment fund by analyzing the connotation and the extension of it and comparing it with the stock and the bond. In the section two, the author analyzed the three parties of the legal relationship of the security investment fund. Simultaneously, proposed"the common fiduciary pattern", and analyzed the superiority of this pattern.Partâ…¡: mainly elaborated the academic foundation of the information disclosure system of the security investment fund by taking the economic as the point of the view, including"the theory of the effective market hypothesis","the theory of agent","the theory of information asymmetry"and"the theory of investor protection"."The theory of effective market hypothesis"explains the relationship of the market information, the security's price and the market validity. The more effective the market is, the more sensitive the price to the information. The agent theory discusses the proxy problem that is raised by the separation of the modern enterprise's property right and the operating right. The theory of information analyzes the problems of the reversion choice and the moral risk which is initiated by the assymetric information. Because of the insufficient information, the investor is unable to judge the real value of the security. Therefore, when they face to the high quality security and the low quality security, the investor is willing to choose the security that is lower than the two average prices. This compels the high quality security out of the market, and results in the reversion choice. The theory of investor protection demonstrates the significance of strengthening the investor's protection.Partâ…¢: mainly elaborated the information disclosure system of our country from two aspects. On the one hand, the author summarized the legal system of the information disclosure of the security investment fund. At present, there are mainly four legal documents in our country about fund information disclosure. They are"security investment fund law"and other three administrative rules and regulations. On the other hand, the author summarized what should be disclosed according to the existing standard. At present, mainly includes four kinds: announcement, periodic report, temporary report, other service information.Partâ…£: It is the core of this article. The author analyzed the problems that the information disclosure system had from five aspects : the carrier of the information disclosure, the fund expense disclosure, the fund investment disclosure, the fund risk disclosure and the fund inner transaction disclosure. And then put forward the legislation proposal on this foundation.The first section mainly elaborated the deficiency of our country's prospectus by comparing with the America's prospectus. The author thought the most important goal of the prospectus is to transmit the information to the investor effectively, and the prospectus should only include the basic characteristics and the core information about the fund. But our country's prospectus is too long and too comprehensive. It is hard for the investors to differentiate the fund. In view of this, the author proposed we should arrange the disclosure order according to their importance.The second section mainly analyzed the insufficiency of our country's fund expense disclosure from the content and the form, and put forward the legislation suggestions finally. The problem of the management fee is the most serious. This fixed expense departs from the fund achievement, thus couldn't drive the custodian effectively, and the management fee basically has nothing to do with the fund style and the property scale. Simultaneously, fund expense disclosure doesn't use the unified expense table, moreover doesn't have the total cost in the table. In view of these, the author proposed we should give different disclosure according to the fund style, and should formulate the unified expense table, and should show the total cost in the table.The third section elaborated the problems of fund investment disclosure of our country by analyzing the present disclosure requirements, and put forward the legislation proposal basically. The present investment disclosure loses the emphasis point, and the investment direction is too broad. Therefore, the author proposed the emphasis point should be changed into the whole description of the investment profolio, and should increase the description of the investment profession.The fourth section elaborated the problems of risk disclosure of our country by analyzing the present disclosure requirement, and put forward the legislation proposal basically. The present risk disclosure only shows each kind of risks which possibly meets in the operation of the fund, moreover the form of the risk disclosure is too unitary. Therefore, the author proposed we should combine the profession condition to disclose the risk information, simultaneously, besides the writing form, we may use the chart to promulgate the fund risk.The fifth section discussed the problems of the related party transactions disclosure revolving the legislation rank and the standard of the "the significant". The related party transactions disclosure is mainly regulated in the fund contract. Thus its binding force is worse, and the standard of"significant related party transactions"is very fuzzy. The custodian may explain it at will .Therefore, the author proposed we must enhance the legislation rank and confirm the standard of the"significant related party transactions".