Study Of The Securities Investment Fund Regulatory Legal Issues

In modern financial market, the security investment fund is an important financial tool. Not only has its scale exceeded a lot the total face value of the issued securities including national debts, stock, etc, but also exceed the total deposit and loan in commercial banks. Now, the security investment fund has become an essential financial product in the modern security market. This article tries to choose and construct the model for supervising the security investment fund in China, benefiting from the successful experiences of the developed countries.Security investment fund, or investment fund for brevity, is an aggregated way to invest on securities with shared profits, risks and losses. That is, aggregate savings of investors by issuing units of the fund, put the money in trust, and then invest on stock, bond and other financial tools according to the manager. The security investment funds in different countries have different names. Nevertheless, they share the following common characteristics: aggregate investment, professional supervise, risk dispersion, maintenance and appreciation of assets value, on investors' account and risk. According to the types of the corresponding laws, there are two different types of security investment funds: company type and contract type. The investment fund is managed and operated in the spirit of trust. The parties to the fund are basically investors, supervisor, and trustee."Supervising" indicates both monitoring and regulating. The security investment fund supervising is that the competent authorities monitor and regulate the activities of issuing and trading security investment funds, as well as the subjects of the activities, according to laws and regulations. As an active component of the market, the security investment fund has market defect too. Besides that, investment fund is a special kind of business. It's high risky and unstable. The market defect theory and the particularity of investment fund together form the fundamental part of investment fund supervising. In order to protect the investors and the common good, it's essential for the government to supervise the market of investment...