The Duty Of Care Standard Of Securities Investment Fund Manager

The duty of care standard of securities investment fund manager came from theduty of care standard of trustee in trust law. The purpose of standard is to regulate theinvestment behavior. The law makers contemplate to design a standard to make theinvestment market developing well. The standard is not in the air and from it we canclearly observe the government's attitude changes of the finance regulation in historyand the legislator's opinion about the standard of a prudent person. The manger's dutyof care standard is an expert's standard in which explain the inherent relationshipbetween the legal subject and the standard. With the advance of society and thedevelopment of economic marketing, the opinion about the standard of duty care haschanged a lot. From the legal list standard, the prudent investor standard to the newprudent investor standard, the changes embody that the knowledge and theories haveactive impact on the standard. After analyzing the history changes of standards andthe content of standards, the author gives a critical comment. Therefore, the authordesigns a vivid picture about our fund manager's duty of care standard and suggestsadapting our fund law.The paper which is divided four parts is totally about 30 thousands characters.The introductory theory is the fundamental basis of the whole paper, whichintroduce the realistic background, the purport, the basic concept and the structure ofthe whole paper arrangement.In the first part, the method of normative analysis and interpretation provisionanalysis is applied to analyze the standard how to impact on the legal relationship ofinvestment funds. The main content of this part contains the specialty of the legalrelationship of investment funds, the standard how to enforce a restrictive function tothe legal subject and how to affect the manager's investment.In the second part, the method of comparative analysis and historical analysis isapplied to construe the origin of the standard and the changes of the understanding ofthe standard in Anglo-American law system. The author lays the emphasis on theanalysis of the legal list standard, the prudent investor standard and the new prudentinvestor standard and points out the advantages and disadvantages of these threestandards.The last part is the conclusion of the paper, the author depict the rational standard scene. The way to improve our standard includes lower the requirement of themanager and makes the standard more flexible. Finally, the author gives thesuggestion about revision clause.