The Study On The Regulation Of Privately Offered Fund In China

With characteristics of smaller in investor range, lower in products liquidity and flexibility in investment, privately offered fond is a kind of funds for investment in securities raised through private placements. Developing privately offered fond is help to meet needs of different investors, reduce systemic risks of securities market and promote the development of fond trade. Currently, due to the different subjects of placement, privately offered fond exists in various forms, and generally raised by securities companies, trust companies, fond management companies, and some non-financial entities. In accordance with the classic theories such as market failure theory and incomplete law theory, there are some inherent disadvantages in the market of privately offered fond and some intervention and supervision from exterior force are more than necessary.Under the current framework of regulation, responsible authorities regulate privately offered fond in the same ways and thoughts as they supervise publicly offered fond. As a result, the phenomenon of regulation homogenization has immerged in this field. Explicit legislative authority is absent for regulating the fond raised by non-financial entities and the management of the fond is still less standardized. Therefore, the concrete measures to regulate privately offered fond have yet to be further improved.According to the basic theory of regulation on securities, learning from the advanced experience of developed western countries and considering the current developing status quo of privately offered fond in our country, the combination mode of governmental regulation and self-constrain regulation which are equally important in the mode can be adopted in the practice of regulation on the fond. Legislative authority for regulation on private offered funds of each form needs to be drawn up. Furthermore, responsible authorities are expected to improve the system of authenticating the investors' qualification and other mating measures for fond regulation. All these efforts are supposed to constitute a regulation system on privately offered fond that can meet the situation of our country.