The Research On Legal Regulation About Private Offering Fund

In recent years, the private offering fund appeared some positive change in our country. The operation means began to move towards the standardization. At the same time, many operators of private offering fund have already realized the advantage of publication. But the primary question in the private offering profession is not exist in the private solicits fund itself, it lies in the short of the external condition. This problem needs to consummate the capital market constantly and develop standardization, then we can realize the private offering fund lawful. All of these provide a good development environment for the private offering fund. Through the research on private offering fund in our country nowadays, this article analyses the characteristic as well as the present situation of the private offering fund in our country detailed, and elaborates its legalization inevitability as well as the realistic foundation, then it gives some advices on legal regulation.The first part mainly introduced the characteristic as well as the superiority private offering fund. Compared with public offering fund, private offering fund is a kind of investment fund which formed by collecting capital to specific ones who invest in fund by the non-public release way. Because it has not been acknowledged by the law, private offering fund in our country can only existence in various forms which change external appearances. They have following several forms mainly: work room, consultant firm and consultant firm, securities trader's level market fund and "outstanding person " fund. The characteristic of private offering fund is: First of all, private offering fund has stronger aim. As private offering fund faced minority specific investor, therefore, its investment goal has stronger aim, which can provide several suitable service products that makes to order according to the customer's special demand provision body, then it has realized the investment product diversification and the differentiated. Next, the flexibility is higher. The operation of private offering fund is extremely nimble freedom, and the investment has the confidentiality, the investment combination can change all the time according to the circumstance. So it has bigger opportunity in obtaining the higher income repayment. Finally, the excitability of private offering fund can be better. It solved well that public offering fund manager to drive the restraint mechanism serious attenuation the malpractice. Compared with public offering fund, these characteristics of private offering fund decide that it has more superiority: First of all, private offering fund product has a stronger aim. Second, private offering fund is easier in style. Third, private offering fund has higher returns ratio. Fourth, private offering fund has less restraint. Fifth, private offering fund needs lower cost. Sixth, private offering fund changes in the innovation. Seventh, private offering fund provides more personalized financial service.The second part of this article mainly elaborates the necessity and the feasibility of legalization about private offering fund. First of all, the article reviewed our country private offering fund the history, and then analysis the present situation of private offering fund detailed. At present the proportion of our country's private offering fund has achieved 30 to 35 percent in accounting for the investor transaction fund. The fund overall scale is in between 600 to 700 billion, and the overall scale surpasses public offering fund one time. Since 2006, private offering fund has become one of the important investment bodies in Chinese stock market. In rising situation in the first half year of 2007, it becomes the most important strength on many kinds of tectonic plates, and many kinds of stock commodity, then it obtains the fixed price power. Obviously our country nowadays private offering fund has large scale, and affects the greatness. Then, the article analyzed our country private offering fund legalization the necessity. Along with the Chinese stock market development, the supervisor troop of investing expands day after day. The investment idea is more mature, and the folk wealth rapid increase. Then the demand of private offering fund to the folk expanded unceasingly. But while private offering fund brings the great quantity fund for the market, as a result of law and supervising and managing vacancy, it also brings some problems that the investor benefit is unable to obtain and the investment trend hard to grasp at the same time. Thus it hindered the order development of private offering fund. The folk private offering fund is to start seeking for developing in the legal system on own initiative. Its positive actinic demand is more and more intense, therefore, legalization about private offering fund is of necessity. Finally, this part is the analysis the realistic foundation for legalization bout private offering fund. Although private offering fund in our country is at the illegal underground condition, but it still rises rapidly and develops fast in recent years. In fact it has profound intrinsic reason that our country has own suitable condition for developing of private offering fund, and there appeared strong trend for the market demand. First of all, it has already own the legal system condition. In the year 2006, revised "Securities law" and "Law of corporation", as well as the newest revised "Formed a partnership Law of enterprise" all provide the related legal basis for the legalization about private offering fund. Next, there is the economic basis already. Along with unceasing consummation of our country socialist market economy system, economies burst out the huge vigor which are planned fetters many year. This kind of vigor displays not only in the speed which grows for the economy, also displays in the multiplication of economical development. This kind of multiplex development promoted the way diversification in managing finances, thus it gave private offering fund object and the market to service. Third, there has been the thought condition. The people already started to face up to the existence and the implication huge energy of private offering fund, and they hope that private offering fund can be given legal status. Furthermore, the mature of own conditions for private offering fund provide the solid foundation for its legalization.The third part of this article is about law rules and regulations question about private offering fund. First of all, it introduced overseas mature legislation to stipulate about private offering fund, mainly take the USA and England as representative. Then it also introduced how to standard in our country's law for private offering fund in the present stage. Although in our country, there are only standard for public offering fund at present, and we do not have the special standard private offering fund in laws, regulations, rules and regulations, but present "Law of corporation", "the General provisions of the civil law", "Form a partnership Law of enterprise", "Securities law", "Trust Law" and so on, they may give private offering fund certain indirect law support, which gave a certain legal basis for its legalization. Then through analyzing some malpractices which private offering fund existences, this article gave some suggestions when we used the legal rules and regulations for private offering the fund. It mainly includes: the strict definition for fund management's qualifications, defining the investor qualifications, the perfect information disclosed the system, limiting strictly the marketing channel and the sales way of private offering fund as well as the establishment of suitable market access supervising and managing mechanism and the registration sets up a file system.In summary, the legalization of private offering fund has already been a popular sentiment, and also an irresistible trend. At the same time, it is beneficial to make private offering fund service for our market economy through giving it legal position. Consequently, when develop industry of private offering fund, we should absorb the advanced experience of organization and supervision in other foreign countries. We should make laws about private offering fund as soon as possible, which can make private offering fund develop more healthier in our country, moreover, it will be a new kind of investing form in higher level in the future.