Research On Legal Regulatory System Of PE

Supervision of Private Equity Fund(PE) is the first step to control the risk of PE and the first firewall to protect investors, to regulate the management of PE and the behavior of manager. As the continuous development and improvement of China’s financial market reform, PE is developing rapidly, which has played an important role in promoting China’s economic development, but there are still many problems.In this paper we use the method of basic theoretical analysis, the status quo, analyze problems, compare and learn form outboard and inboard experiences.In the first chapter, we discuss the definition of PE, analyze related entities and their legal relationship.In the second chapter, we discussed the basic principles and the necessity and feasibility of PE regulation respectively from the Economic Law and the Law and Economics, and proposed risk-based, market-oriented regulatory model.In the third chapter, we analyze the five main deficiency of legal regulatory system of PE in our country.In the last chapter, we learn experience from foreign countries and propose several suggestions. For the problems in the establishment of the PE, analyze and compare various access modes to establish the basic system of record-keeping system. We discuss the stringent of manager’s approval system, propose specific recommendations to strict approval, set up floating registered capital and risk reserve system to lower the capital threshold. In the aspect of setting up qualified investor(QFI) system, we learn from the provisions of the number from U.S.A and’ the option investor provisions form U.K, we propose unify standards, strictly limit the number of investors, determine the flexibility of QFI standard. Specific the scope of disclosures to improve the information disclosure system, and increase the fund agreement Mandatory Provisions, supplement the antifraud provisions to the proposal, make sure the exercise of the rights guaranteed by changing the burden of proof allocation. Put forward rationalization proposals to broaden and standardize the source of China’s PE investment from foreign investors, institutional investors, government, private capital aspects.