Study Of Securities Investment Funds, Regulatory Legal System

The PRC's Security Investment Trust Regulation was formulated in Oct.2003,However ,due to China's Security Investment Trust short history, there are still some questions in both law-making and practicing, so ,1 think that it's very necessary to further discuss supervision mode, supervision body and supervision content . This is extremely important and practically meaningful to improve China's Security Investment Trust Security Investment Trust supervision s system and to promote its legal operation within the framework of China's laws and regulations, thus promoting China's Security Investment Trust sound development.The 1st chapter of this paper mainly introduces related concepts about SIT, such as its definition, basic features, law form and organizational structure, of law relationship refer to trust investor, trust manager and trust.In the 2nd chapter, the writer conducts a deep analysis about the necessity, system and basic principle of Security Investment Trust SIT. In the law relationship of Security Investment Trust SIT, trust investor trust manager to operate and manage its capital. According to the law, in this situation, investor's truster is based on his trust in the character and abilityof the manager. However, because of potential benefit conflict between investor and manager as well as information asymmetry, it's possible for moral risk to happen to trust a manager, thus leading to damage to trust investor's benefit. As such supervision of Security Investment Trust should be greatly strengthened.In the 3rd chapter is a deep research and comparison in the SIT supervision system of America, British and Japan. I think the effective system structure to satisfy the demand of trust supervision is one that is mainly functioned by government's concentrated supervision with self -discipline supervision a subsidiary means.The 4th chapter mainly studies the Security Investment Trust Security Investment Trust supervisor . I think the China's securities supervision committee should learn from the American supervision model, so as to promote the development of the fund industry within the regulation. The securities exchange can play a very important role in the supervision and management and it has a great advantage in its front-line, so I think we should strengthen the fund supervision and management of the securities exchange. With the gradual of Security Investment Trust SIT law-making, China will furtherimprove the fund industry's self-supervision.The last chapter has deeply analyzed the content of supervision and management. The object of the supervision and management to the fund management companies involves examine approval and daily events, and the object of the supervision and management of the Security Investment Trust SIT operation includes four aspects :examination and approval, information revealing, selling ,and daily investment and trade.