The Reform Of Internal Restrictive Mode Of Contractual Fund In China

Contractual fund is a kind of trust relationship, which gives the Trustee much freedom to manage the fund property, it may bring on the moral hazard. So it is necessary to establish an efficient internal restrictive mode to compel the trustee manage fund assets consciously to maximize the profits of fund holders. In our country, the trustee's obligation and the investor's power are still inconsequence, fund manager often breaks its obligation and abuses its power without restriction, custodian banks have been made a mere figurehead. We should improve internal restrictive structure, so as to attain to the balance of duty, right and benefits of the correlation sides of fund.Based on the trust law, the Agency theory, the frame of internal restrictive structure and the theory of institutional economics, using the comparative methodology, this thesis discussed four internal restrictive modes, whose representative nation is Japan, Germany, U.K. and India. The author compared and analyzed the rules, the operation, the advantage and disadvantage of each mode, and the background reasons in each representative nation. Considering the realism environment of our fund industry, the author proposed and designed to use the independent trustees'mode for reference to reform our internal restrictive and governance structure of contractual fund.