Private Equity Fund Regulation Of The Legal System

Private Placement Fund is the principal element in today's world capitalmarket and has become an indispensable investment and financing way ineconomic development of each nation. It has been seventy years since the debut ofthe US securities private placement law, whose evolution greatly pushed forwardthe advance of private placement fund. For recent years, global private placementfund has assumed the trend of accelerated development and played more and moreimportant roles in the economic field.Though private placement fund in China is not as mature as other developedcountries; it has become an important element in scale through several years ofdevelopment.The prosperity of private placement fund is due to not only China'seconomic prosperity, endless innovation of science, but maturity and perfect oflegal system as well. Private placement fund has good reasons to become part ofour capital market, and is able to perform various functions for China's reform,restructuring and open up. For the private placement fund is developed for only afew years, it is still in the primary stage both in operation and in theory. Plenty ofevidence demonstrates that so far private placement fund has not obtained itslegitimate status, which affect its operation, supervision and development. Thesituation will threaten stability of fanatical market. It now becomes very importantto enact and improve rule and regulation on private placement fund.The paper starts mainly from the angle of jurisprudence and discusses onbasic theory, historical development, legal base and legal system of privateplacement fund in other countries (regions). The paper describes the status quo ofprivate placement fund in China, points out problems, and based on the successexperiences of other countries (regions), puts forward the regulations of privateplacement fund.This paper consists of five parts.In part one, I analyze the conception of private placement fund by definingtwo important words:" private placement" and" funds". By this means I set forththe specific implication of private placement fund in our Mainland. Then theprivate placement fund is classified from different aspects. This classification has significant and realistic meaning not only for our understanding of privateplacement fund but also the process of law-making in terms of private placementfund. Last, by the comparison of private placement fund with public fund we canclearly understand the characteristics of private placement fund.In part two, private placement fund is based on theories and principles ofTrust Law. In order to better understand private placement fund, the paper have arecapitulative interpretation on basic legal theory of the fund. Since privateplacement fund is a kind of funds, it must be as similar as the fundamentals of fund.Private placement fund is the special form of trust system.The paper describes the development of American's private placement fundand constitution of it's legal system with great emphasis, then the paperdemonstrates other country's and regions's legislation of the fund, such asJapan,Taiwan and Hong Kong. As indicated, this part presents the advancedsystems and criteria that private placement fund legislation of our country can usedfor reference on the basis of evaluation of private placement fund legal systems inthe above mentioned countries and regions.In Part four, this part introduces specific condition and the supervisory systemof private placement fund in our Mainland. I describe the development history ofprivate placement fund from macroscopic view, which can divide into three stages:the embryonic stage, the initial stage and the prosperity stage. The popular ofprivate placement fund in our country is not occurred by chance. It is not just aproblem of legal position; more important thing is how to perfect the legal systemof private placement fund.In part five, this part sets forth the detailed tentative plan of establishing legalsupervising system of private placement fund in our country. This part gives ananalytical description of the essential principles of private placement fund. Underthe guidance of these three principles, we can do some research on the legalelements, subjects, acts and the supervision body of private placement fund, andfinally establish the specific framework of the legal system for the supervision ofprivate placement fund in China.