On Improving The Regulation System Of Security Investment Fund In China

The Security Investment Fund is an essential financial product in the financial market of China. It is of great practical significance to have regulation system on it effectively. The Security Investment Fund is a kind of investment way that invested by many uncertain investors and operated by professional institute. All the profit from the investment will be shared pro data. The Security Investment Fund is divided into corporation type and contract type. It is operated on the basis of trusteeship. The parties to fund mainly include fund investors, fund managers and fund trustees during the process of operation.The Security Investment Fund also exist the operational defect as the organically part of market system, so the effective regulation system is necessary. At the same time, the regulation to security investment fund market is quite necessary in order to protect the profit of investors, improve well financial environment and develop the capital market. The Defect Concept of Market and the value of fair and justice in legal formed the concept base of regulation system of Security Investment Fund.The regulation system on Security Investment Fund in China should use the experiences from western developed countries as reference because the development of capital market in our country is not better than them.We should realize that the regulation level of our country is developing on an ongoing basis, but still have many problems. For example, incomplete legal system, complicated governmental regulations and rules, low legal level, defective tightness with other legal, too many principal statements, lack of operational use etc in the aspect of regulation of legal system. The internal regulation relationship tending to weakening in practice, the construct of fund management is unstable, weak internal control on fund management in the aspect of fund internal management. On the other hand, the management of fund lack of external control and the fund owner lack of private relief system.In order to improve the regulation system of security investment fund in out country, this essay suggest the best way as below: developing the procedure of legislation of protecting the investors, rebuild the management structure of fund, developing the investment fund of operational type, developing the internal management system, improving the marketing admittance system, improving the disclosure system of information, improving self-principle and supervision, continuous change of government supervision way, the fund regulation constitute need to be specialized and centralized, introduce class action system and confirm non-lawsuit system.