Study Of The Securities Investment Fund Managers And Legal Obligations

As a popular investment tool, the securities investment fund embodies the separation of the ownership from the management of the fund assets. It means the danger of the insider control of the manager. The manager is inclined to take advantage of the power of the management to infringe upon the interests of the fund and the fund unit holder. So it is important to create the institution to control the manager's power efficiently whereas such power is so great. In our country, it is even more necessary to regulate the manager's behavior since the imperfect fund legislation, the low investment level and the low moral level of the manager, the frequent occurance of the interests conflict contracts of the manager, etc. In this thesis it is adovocated to adopt the fiduciary duty to regulate our country's fund manager's legal duty.This thesis is about 40000 words. It can be divided into five chapters.Chapter I: the introduction to the securities investment fund. The definitions of different countries, the basic classification and the character of the securities investment fund are introduced in this part. The theory foundation and the visual angle are formed for the ensuing paragraphs.Chapter II: the securities investment fund manager's legal duty-fiduciary duty. Fiduciary duty is a concept arise from the equity law. The following factors necessitate the fiduciary duty of the manager: the separation of the ownership from the management, the insider control of the manager, the divorce between the private aim and the occupational aim of the manager, etc. The legislation of the fiduciary duty exist in the foreign country such as England, America and Japan. It's more necessary to establish the manager's fiduciary duty in our country.Chapter III: the duty of care of the manager of the securities investment fund. The duty of the care originates from the contractual law, the tort law and the equity law. The standard of the duty of care must be objective and be supplemented by the subjective aspect. The contents of the duty of care comprise the limitation on the investment objects and the limitation on the investment way and method.Chapter IV: the securities investment fund manager's duty of loyality. The manager should prevent the interest conflict between himself and the fund and the fund unit holder. Non-conflict is the core. The conflicts of interest transactions may be divided into three types: principal transaction, joint transaction and agency transaction. This part would emphasize the legal regulation of the three types of transactions.Chapter V: the supervision to the securities investment fund manager's fiduciary duty. The macroscopic supervision should be founded through the choice of the fund supervison style and the fund legislation style. The mechanism supervison should be founded through the development of the open-end fund and the statutory type fund. By means of the control of the fund unit holders and the fund custodians the client supervision can be established. Also the structural supervision can be set up through the refinement of the fund administrative structure and the fund manager administrative structure. So the comprehensive, many-sided supervision system can be founded to safeguard the fund investors' interests.