Study On Information Disclosure System Of Securities Investment Fund In China

The securities investment fund has developed rapidly in China, and it is becoming the heart of China's capital market increasingly. There are three different aspects between the information disclosure system of securities investment fund and the information disclosure system of the securities market:the legal basis, the main obligations and the provisions of the forecast. Its theoretical basis is the Invalid Efficient Markets Hypothesis, the Information Asymmetry and the protection of the investor's rights and interests. It is favourable to the stability of the fund market and improvement of the fund supervision to enhance the information disclosure system of securities investment fund.The legal system of the information disclosure has been built in China, and it has been improved continuously. But it has not been perfected in three aspects:the general system, the civil liability system and the supervision system. In the general system, first, the provisions of the fund risk disclosure are too broad, and there is a lack of the guidance of standard and the comparative analysis of the risk. Second, the format of the fund expense disclosure is short of a standard, and the disclosure of the fund cost is not comprehensive. Third, as the object of inner transaction, the concept and the scope of the main body is in a state of ambiguity. The harmfulness of the different inner transaction is not clear because the disclosure is lack of the stratification. Meanwhile, it is also lack of the information disclosure of fund distributors and the fund managers. In the civil liability system of information disclosure's flaw, first, the provisions are too principled, and are not easy to practice. The principle of no-fault liability has some negative effect. Second, there are some difficulties in the implementation of the civil compensation system. In the supervision system, first, the coordination mechanism between the regulators is imperfect, and China Securities Regulatory Commission lacks entire independence. The executive regulation is over-emphasized and the moderation is not grasped well. In the practice, there are many problems about the insufficient investigation. Second, it is lack of legislation and a unified self-regulatory organization. Due to the lack of regulatory authority, the authority and initiative of the self-regulatory organization are not enough. Third, because of the confused management and the imperfect system, the effect of its supervision can not be exerted well.There are some focused suggestions for the problem:In the general system, firstly, enhance the information disclosure of the fund risk, refine the standard and unify the format. Focus on the risk disclosure of the investment portfolio, standardize the backup of the risk information and the disclosure of the historical fluctuation. Secondly, consummate the contents and format of the fund expense disclosure. Define the fund cost of specific investment vehicles by restructuring the composition. Thirdly, strengthen the disclosure of the inner transaction. Classify the inner transactions and make distinctions under the defining of its main body. Meanwhile, strengthen the internal information disclosure of the fund distributors and the fund managers, enhance the supervision responsibilities of the fund custodian. In the civil liability system of information disclosure's flaw, firstly, to strengthen the legislation, improve the civil compensation mechanism in the substantive and procedural provisions. Establish the principle of no-fault liability and presumptive fault. Secondly, improve the group litigation system of the fund holders, build the insurance system united to the civil liability to protect the interests of the fund investors. In the supervision system, firstly, establish the mechanism for harmonization between the regulatory authorities. Define the focus of China Securities Regulatory Commission, intensify efforts to the enforcement, reduce the intervention of the government, and improve the marketing supervision. Secondly, establish the interactive system between the self-regulatory and the government regulation, strengthen the supervision authority of the self-regulatory organizations. Establish a united organization and improve the management of market mechanism. Thirdly, strengthen the legislation and refine the provisions of responsibility. Strengthen the independence of professional organizations, and free them from the interest control during the supervision of disclosure. Enhance the mutual supervision of their disclosure documents.