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Study On Oversight Function Of Investment Fund Trustee

Posted on:2013-05-15Degree:MasterType:Thesis
Country:ChinaCandidate:L X ZhuFull Text:PDF
GTID:2246330395988225Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
The securities investment fund system, which is based on the idea of trust and asa professional and indirect investment vehicles, has the advantages of collectiveinvestment, risk diversification and financial expert, so it has become an idealinvestment tool for a vast number of investors, especially the small and medium-sizedinvestors. However, it is because of this trust design, leading fund managers the rightto over-concentration which will inevitably bring about corruption, the continuallyexposing of infringement of the interests of investors not only damaged the interestsof investors seriously, but also hinder the stable development of the securities market.Therefore, the fund governance model is always around the constraints on managers’behavior, trying to form a situation of mutual checks and balances of the Fund’sinternal parties, the trustee system is a product of internal checks and balancesdesignedits, it has indeed formed constrains on the fund managers. Due to theimperfections of the governance structure of funds of our country, coupled with theadministrative control is not in place, the fund custodian’ function of supervision islikely to be fake, the fund custodian become a simple custody and clearing tools.Therefore, this paper conducts systematic research on legal basis and system design oftrusteeship of securities investment fund. Drawing on the representative internationalfund governance experience and relative theory, this article deeply investigate themain defect of our country’s trusteeship system; moreover make specificrecommendations on the reform of the system.Chapter1is a summary of securities investment fund trustee’s function ofsupervision, including the historical context of the trustee to assume oversightfunctions trips and the analysis of legitimacy, clear the question of trustee why andhow to generate, point the generation of custodian arising from the need for internalchecks and balances of the investment fund, custodian’s value demands is from themaintenance of the investors’ interests, who are the trustor and the beneficiary of thefund. Chapter2analyzes the nature of the trustee’s supervision function, come to aconclusion that trustee’s supervision function has dual nature of the rights andobligations, and it is broken down further on the specific content of the extraterritorialand domestic custodian supervisory duties, to sum up, the custodian perform itsoversight responsibilities in the following aspects: custody supervision, supervision inoperation, supervision through litigation relief, supervision of the appointment andremoval and supervision through accounting, at last, to build a comprehensive systemof supervision.The third part, from the analysis of supervision of current situation of China’scustodian, point out that the fund custodian in China have following problems: first,as a matter of fact dependent on managers makes it difficult to maintain theirindependence and supervise, mainly reflected in two aspects, on the one hand, theoverlapping roles of managers and sponsors lead to the trustee in fact be elected anddismissed by the administrator, on the other hand, economic interests of the trustee isconstrained by the administrator; second, stenosis of trustee supervision’s context andthe lack of the necessary performance of their duties constraint mechanism lead tolimited capacity of trustee supervision.The fourth part, for the industry and the status of our fund custodian andcustodian system design flaws, this article draw on experiences of extra-territorialcustodian governance, put forward views on the reform of trustee supervision. Firstdetermine the legitimacy and efficiency goals of the supervision of the custodian,Then discuss in detail in the following aspects: enhance the independence of thetrustee, clearing the legal status of trustee, and the expansion of the scope ofsupervision rights.
Keywords/Search Tags:fund trustee, supervision function, independence
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