Build Our Personal Account Fund Investment Regulatory Regime

"Part accumulation" system is a kind of mode which mixes "pay as yougo" system and "complete accumulation" system. Under this mode thesocial pension fund is divided into two parts: one part of social poolingand another part of individual account. It is practiced "pay as you go"system for the social pension fund and "complete accumulation" systemfor the individual account.In theory, this mixed mode is needed to notonly preserve the functions such as inter-generational transfer of thesocial pension fund in "pay as you go" system and the redistribution ofincome, but also bring the "complete accumulation" system into fullplay to develop individual responsibility, as well as increase theinitiative of paying fees and the deposit rate. Meanwhile, someshortcomings, for instance, the "pay as you go" system can not deal withthe question of aging and the "complete accumulation" system has nofunction of redistribution, will be overcame.On the basis of fully inspecting and using the experience of othercountries for reference, China chose "part accumulation" system whichintegrates social pooling with individual account. However, like most ofthe countries using this mode, China could not reasonably admit anddigest the cost of transferring the old system to the new one in theimplementing process, thus causing the "part accumulation" system fallshort of the reality. For example, in China the appearance of movingindividual account fund is serious and the fund is used in riskinvestment under the definite prohibition everywhere. The cases aboutsocial pension fund occur in many places that the current practicesmentioned above are exposed before people all over the country.Therefore, the problem of the social pension fund gives rise to closeattention.Beginning with an introductory remark that the social pension fund hasbeen thrown into confusion in China, the writer reveals all kinds ofproblems in the investment supervision on China's individual account fund and gives suggestions of establishing regulations to perfect thesupervision.There are totally four parts in this paper. The first part is theemergence and development of the investment supervision system forthe individual account fund. In this part, the background of demands forthe investment on individual account fund and the demands for thesupervision on the investment are introduced.The second part is the basic structure of the investment supervision onthe individual account fund. In this part, the content of the investmentsupervision on the individual account fund is clarified throughintroducing its regulations in other countries.The third part is the defects and harmful influence caused by them inthe investment supervision system for the individual account fund. Inthis part, the writer analyzes the current situations in our country whichlays a foundation for putting forward suggestions in the next part.The fourth part is the establishment of China's investment supervisionsystem for the individual account fund. In accordance with the actualconditions in our country, the writer puts forward some suggestions tothe investment supervision system for the individual account fund.