The Research On The Regulation Mechanism Of Fund Holders To Fund Managers

As an emerging market, the capital market in China has been developing for a great deal in recent years, and the same of the market of security investment fund. In the meanwhile, however, the problems have come up in the fund market with this trend as well, among which betray of fiduciary duty, misfeasance, violation to the regulations and offence to the rights of the fund holders are the most harmful. Therefore, it has been a topic of research, which has been faced to not only the academic circle but also the practical people, on how to regulate and supervise on the fund managers effectively in order they could comply with the fiduciary duty they hold and the interest of those fund holder could be protected fully.The methods of regulation on the behaviors of fund manager could be divided into many layers, by the standard of subject of legislation, including the regulation from the administration, the monitor of the investment fund custodian, the inside governance of the fund manager and the regulation of the fund holders, which is the main topic of this thesis. Among these different methods of regulation, the supervision from the administration could be regarded as a sort of external regulation, while the regulation of the fund holders, custodians, and the inside governance of the fund managers is a sort of inside regulation. The each of them is indispensable, though each of them bears obvious deficiency. Due to the nature of trust, it would be improper for the fund holders to interfere the operation of the manager overmuch. It could not be substituted still, however, of the regulation from fund holders on the compliance of fiduciary duty by the fund managers, based on the special status in the fund legal relationship of the fund holders.This thesis discusses the topic in 4 charters, in the logic of promotion. In the introduction, the author starts the thesis with two cases about the misfeasance of fund manager, which was investigated by CSRE, and reviews the development of the security investment fund in China briefly. Then the author divided the regulation subjects into 4 sorts and sets up the discussion in the angle of the fund holder.In the Chapter One, the thesis analyzes the connotation of security investment fund, and gives the point of view through the comparison with the related theory. The thesis defines in the first charter the nature of security investment fund in China as a sort of trust relation, based on the analysis on the legal relation of the fund.In the Chapter Two, the thesis improves to research the relationship between the fund holders and the managers, demonstrating the importance of the regulation mechanism run by the fund holders and pointing out the obstacles based on the anatomy on the nature of the fund holder's rights. In the Chapter Three, the fiduciary duty burdened by the fund manager would be analyzed deeply. The thesis expounds the sub-duties, the loyalty duty and the care duty, of the fiduciary duty after a general introduction of the fiduciary duty of the fund managers.In the last chapter, the thesis discusses the regulation mechanism of the fund holders on the fund managers, and analyzes the three sub-mechanisms, which is the holder meeting, the information disclosure system, and the litigation mechanism of the fund holders. The problems have been pointed out and the suggestion is given as well.In this thesis, the author intends to demonstrate and analyze based on the academic background of economic law and business law, with the application of the methods of the systematical analysis, the structure analysis, the historical analysis and the positivism method. In the course of research, the author also uses the foreign theory of trust law and capital market for reference to process a systematical research on the topic. Hope the thesis would be a valuable devotion to the related fields.