On The Obligations And Liabilities Of Securities Investment Fund Managers

Securities investment funds, a kind of popular instrument for investment and money management, embody the separation between the ownership and managerial authority of funds assets. The separation may cause the risk of fund managers"Insider Control". The fund manager being the subject of funds core may make use of the managerial authority in his hand to harm the interests of the funds and the funds investor. Then, how to restrict the rights effectively when we endow the fund managers with enormous rights? Absolute power must cause absolute corruption. If fund managers'rights for investment can't be restricted effectively, it is possible for the fund managers to abuse their rights for investment and even make use of the funds assets to seek personal gain for themselves and the third one in interest. In this case, the original ideas and purpose of securities investment will be violated. Nowadays, in China, it is necessary to restrict the fund managers'rights, set up their fiduciary duty, the obligation of information disclosure and the legal liability.