Research On The Legal Issues Of Private Fund

Along with the country's economic development and the growth of private wealth, there has been strongly desire for the proliferation of personal wealth. At the same time, Public-fund investing in a single economic development for the system can no longer meet the demand. In this context, the private fund from non-road, with its convenient mode of operation and flexible portfolio fund market, quickly occupied the half of the capital market. Then, what is private fund? What is it that causes the emergence and rapid development of private fund? Where is comparative advantage of the private fund? All of these are presented in the first chapter. People are not familiar with Private Fund which is a new-born thing. Particularly, due to the relevant legislative gaps in the case, Private Fund and related legal concepts not yet clearly defined. There is controversy about the existence of Private Fund even in the theoretical issues. Recognizing the Private Fund, it is the premise of its laws, regulations and laws before the system of private funds. As a fact, we can not deny its existence. Meanwhile, the existence of private funds as institutional arrangements is not the promoting product of its top-down government but the gradually standardized results of the bottom-up folk wisdom. Therefore, as a private fund and institutional arrangement, Private Fund is the most efficient way to look into along with the path of induced changes in the system to consider the mechanism. Then, what we have to ponder further is that the economy develops to a certain extent. Public-fund and institutional arrangements required a single system to supplement the supply shortfall which caused by the system. Why did the people's wisdom choose Private Fund? What are the comparative advantages of Private Fund? Through the analysis of this chapter, we can at least come to this conclusion: Private Fund is the result of the induced institutional change and the comparative advantages of Private Fund precisely suited to the requirements of economic development.In the first chapter, we analyze Private Fund within the scope of the basic theoretical issues and also find that because of the comparative advantage of Private arrangement it has been a major development for the Fund of the system in the country. We can not ignore the strength of folk wisdom in the capital market. Then, what is the current development of China's private fund in the end? What forms of organization types are they? What are the problems in the development process? What causes these problems? These are the questions that can not be avoided and what we must look into at the course of the legalization of Private Fund. Empirical analysis of the issues is an important part for the proposed solutions to the problems of preparing a prerequisite, as well as the study of Private funds.The second chapter explores the features of the several stages for its development following the course of China's development. Meanwhile, due to the late development of China's private fund market and the gaps in legislation, the existence of a systemic problem of the development process is fully exposed. The chapter will also analyze these issues and sum up the reasons for these problems. We found that some of the current operations of private fund were not standardized. The sound system is what we have to face in the early development of a national private fund. But at the same time, these problems which are exacerbated by China's national conditions are different and have some peculiarities. Therefore, the solution to the problem lies in the necessity to learn from the advanced experience of the developed countries. On the other hand, we need to grasp as early as possible on the basis of China's national conditions and formulate relevant laws regulation of these issues to be legal. We concluded the analysis by the second chapter, the strong momentum in the development of China's Private Fund which occupies half of the capital market. Moreover, as China's further economy development, the middle class is growing, the scale tourism will be further developed. Private Fund has broad demand for space systems. On the other hand, China is a special economic restructuring and the economic system must be improved gradually. Securities market needs a maturing process and the domestic financial legislation is relatively backward. Moreover, the country lacks a culture of trust concept, which in the development of Private Fund makes a certain degree of distortion. The solutions to all these problems include: first of all, depending on private fund their own systems; secondly, depending on the economic environment, the improvement of the environment and humanity; finally, depending on the timely release of relevant laws in a targeted manner to resolve the issue. It can be said that the legislation which has come to a Private Fund conditions is ripe. We need the spirit of"the China's problems, the world vision and the local wisdom"principle to have a deep understanding of the problems, to learn from maturity of legislative experience, to formulate forward-looking laws, and properly solve the current problems faced by private fund.Therefore, in the third chapter, we selected three representative of private fund-depth analysis of this model. Private Fund of the United States is more mature. The USA and France is the main coverage for some perspective, comprehensive, detailed exposition of the United States Private Fund legal norms. Act on the Private Fund of the United States is mainly related to the"Securities Law"in 1933, the"Securities Exchange Act"in 1934 and"D Ordinance". Private fund-raising methods mainly from the United States raised two areas targeted for control. The"D Regulations"issued by Private provides:"We will not permit advertising or general counsels that Private issued in a public way."Its targets must be"qualified investors". This includes the possession of certain assets of individual investors and institutional investors who have certain property. The biggest feature of the United States Private Fund legislation is balance: balance of the protection of investors to facilitate the financing, balance between efficiency and fairness, balance of market and supervision. On the balanced development of Private Fund in the United States it has laid a solid foundation. Private Fund legislation in the United Kingdom issued a"spread"for a more detailed delineation issue. The private funds in Japan and Taiwan region of China mainly learn from the experience of the United States and transplantation. But each of they have their own characteristics. For example, the private fund limited partnership organized in a manner different from the United States, as well as the contractual fund. Also, Japanese private fund invests in major industrial risk and the law explicitly prohibits investing in securities. China's Private Fund legislation can draw inspiration from the above countries or regions.Chapter 4 of this paper is to explore the issue of the legalization of Private Fund. Private Fund is an integral part of the financial system and economic system as an integral part of the financial system. It has its own unique operating mechanism, which is legal to use hand played the role of balanced interests of all parties. Game or mutual main parties will reach a balanced state which by law is confirmed. The aim is to better safeguard the healthy functioning of the economic system, maximize protection of the rights and interests of all participants in the economic system in order to achieve the best results. This role is played by legislators and regulators of the executive. Therefore, we must not underestimate the force of law, and the law must be the operating system or the operation of the economy which had to respect the law. Private Fund in legal relations, the basic relationship is the embodiment of the sponsors and investors. According to the economic theory hypothesis, in the market of private issuers investors will maximize their own interests in order to proceed with the transaction. The purpose is to facilitate the issuer to raise capital and to minimize distribution costs, including the extent and scope of disclosure of information and lower rate of return on investment. The purpose is how investors greatly to access other information, to maximum security of investments and to maximize the return on their investment. In this process the interaction between the economies of the two sides are in direct contact and face-to-face negotiations. It can reach a mutually acceptable agreement, and following the principle of the contract the law should not interfere. However, along with economic development, the government has fully realized that the maximum of individual interests can not achieve the maximized benefits of the community, and community interests are no longer limited to the economic interests, which have become richer in substance. Private concerns of the legislators have not confined to the specific interests between the parties to the transaction. Instead, it focuses on the broader interests of society as a whole. Therefore, it becomes necessary for the legal regulation of private fund.