A Study On The Law Supervisory System Of Investment And Operation Of Insurance Guaranty Fund In China

Nowadays, reform on insurance guaranty fund system is one of tasks of economic system reform in our country. Insurance guaranty fund is a type of long-term reserve fund which could cause a large amount of defered balance assets, via inflation-proofing and appreciation, in addition to the normal payment. And the inflation-proofing and appreciation of fund could only be achieved via investment and operation in capital market. However, high earning rate in capital market is always accompanied with high risk, which needs good balance between earnings and risks during the operation processing. And due to its speciality from other general investment funds, insurance guaranty fund is the final safety net of the insurance holders. Therefore, its nature and application decide that the investment safety must be put first into capital market. For implementation of safety, we must completely understand and analyze the operation risk of insurance guaranty fund in capital market so as to constitute relevant risk prevention regulations and supervision and management systems to balance the safety and earning of insurance guaranty fund.The importance of insurance guaranty fund requires the relevant supervisory institutions to carry out omnibearing supervision to the operation process of funds investment so as to achieve implementation of inflation-proofing and appreciation. Thus, the supervisory laws and regulations of insurance guaranty fund are no doubt the important supervisory evidences. However, such relevant researches and legislation are still of weakness and several problems are still existed. For example, the legislation for supervision and management to the investment operation of funds is still needed to improve and the existed legislation has lower level. The perfect supervisory system has not been really established. The professional supervisory level is lower and there is lack of exact responsibility system and so on.At the present time, only administrative supervision exists to the insurance guaranty fund in our country. Therefore, we should establish a new perfect fund supervision system including legislatures, administrative supervision, judicial supervision, inner supervision, social supervision and special supervision so as to combine the government supervision, inner control of fund corporate and social supervision as well as pay enough attention to the special supervision effect from auditing, assessment and accounting and other such agent institutions, as well as to set up the specific regulations for perfection of the operation supervision for insurance guaranty fund. On the premise of legal, reasonable, proper and earning-emphasized supervision, we should stand up market access and exit mechanism of the fund investment management insitutions, improve the supervision system of fund investment, ensure the funding independence of insurance guaranty fund, enhance the control on risks of funds operations and realize the rights remedies and protection of the relevant beneficiaryies of insurance guaranty fund via judicial supervision.