Research On Supervision Legislation Of Non-publicly Offered Funds In Private Equity

As to the reason of translation, some Chinese scholars misunderstand the concept and content of Private Equity Fund. Private Equity is different from the Private Placement. This article is to clarify the legislation on the supervision of non-publicly offered funds in private equity. It is still debt that whether this kind of fund should be supervised. Because private equity is always regarded as be only issued to specific persons who were qualified of risk identification and risk control ability. In recent years, however, the private equity companies have raising billions of dollars, and cause systematic risk. What’s more, the equity investment with high risk weighting has the characteristics of opacity and information asymmetry. So it is necessary to take a supervision on private equity fund. The phenomenon of regulatory fragmentation and un-unified legislation is significant. And the investors’interests can not be guaranteed with abusing supervision. The proposal of legislation of private equity fund is more necessary. The America and England with perfect capital market is the birthplace of private equity. The research about the institutions is depends on the real understanding on the purpose and the actual situation in china. In my opinion, the supervising object should be the fund management company, and the supervising entity should be China Securities Regulatory Commission. But China Banking Regulatory Commission and China Issuance Regulatory Commission should take the responsibility of systematical risk regulation. The core regulation of private equity fund should be market admittance and management company supervision. According to the origin of legislation, qualified investor with risk-identification ability should has investment experience and knowledge, and has access to the message. The supervision idea of management company is exposure theory and fiduciary theory. But legislator should take more arbitrary norm than peremptory norm to encourage parties autonomy.