The Moral Crisis Of Professional Fund Manager And Its Countermeasures Research

With the fast development of fund, the fund of security investment attracts more and more attention owing to its high prospective return rate. But the performance of it in our country is not so well-pleasing. Among these funds, many even made a huge loss. Apart from several objective factors, it is also an important reason that there exists a great deal of moral crisis deeds of fund manager of security investment.In recent years, scandals involving fund managers of security investment have been frequently appeared, just as "Rat Trading",insider trading, market manipulation, false statement, etc. This phenomenon not only leads to trust crisis of lots of investors to fund managers, but also attracts numerous attention from whole society. Thus, how to build an effective mechanism to motivate and constrain the action of fund manager, and let them perfectly serve investors has been a noticeable problem to resolve urgently.In this paper, the problem about the moral crisis of fund manager of security investment is studied.In order to explore feasible countermeasures, we mainly analyze the reason of the moral crisis of fund manager of security investment and how to reinforce the credit construction of fund manager. First of all, in chapter one concrete phenomenon about moral crisis of fund manager of security investment is described and its hazard is briefly analyzed. And then in chapter two we analyze how to shape the moral crisis of fund manager of security investment and take the hypothesis of "rational economic man" as an entry point. Then we analyze the major reasons of leading to their moral crisis from four aspects:the comparison of criminal cost with proceeds, special principal-agent relation, the existing defects in motivation-constrain mechanism and credit system. Furthermore, we explore the necessity of credit construction of fund manager and the development direction of system evolvement. Finally, according to these analysis, in chapter three, we mainly explore some countermeasures and advices. In comparison with successful experiences of western developed nations of fund management. we propose some effective ways to improve internal and external governance of fund managers, design the system of cancelling fund managers vocational qualification, establish the credit rating system of fund managers and strengthen information disclosure, speed up the step of converting contract fund to corporate one by reinforcing government supervision, industry self-discipline construction, credit system construction, and improving motivation-constrain mechanism.