The Institutional Arrangement Research On Chinese Investment Fund Governance

The fund governance is an extremely interesting research topic. A broader understanding of fund governance is a series of legal system arrangements designated to eliminate the moral risk that stems from the proxy-agent conflicts. Its essence is the maximum protection over the interests of fund ownership. Since the promulgation of the related laws about the investment companies and the investment consultants, the industry environment in USA varies dramatically, but these laws and norms are still generally considered to operate quite well. What is impressive is that, American laws always put the protection of the interests of investors on the first place, and spare no efforts on the designation of related systems, such as the information disclosure, the guidance against interest conflicts, limitations on connected transaction and the shareholder democracy (collective decision-making), the emphasis on the fiduciary duty (counter-bully) of investment consultants, etc. In May 1994, the Fund Supervision and Management Department of American Securities Supervision Commission has published a report that carries on a review and summary over the experiences in the fund management and the investor protection system in the near-semi-century history of US, and proposes the corresponding reform measures. Other...