The Comments Of New " Securities Investment Funds Law "

The rapid development of financial markets and the increase of private wealthmake the securities specialized investment funds popular with people of all ages. Butwith the market position of the investment fund gradually increasing, there are someflaws in the relevant legal system to limit the scope for investment funds, the fund’sgovernance structure.. Legal lag can not lead the fund market to a healthy stabledevelopment, but the opposite may also appear on the market, which has someregulatory constraints to product innovation, mechanism innovation.In this context,the new " Securities Investment Fund Law" conducts a series of institutionalinnovation fully considering the interests of the fund market trends, investors.First, it’s the first time that the non-public fund raising has been into the lawadjustment range, and a special chapter is designed to run the conditions ofnon-public fund raising, and performs loose and strict appropriate monitoring ofraising funds for non-public.Second, it establishes the principle of " the interests offund shareholders priority protection". The new law permits fund share holders’meeting may establish daily agencies to give full play to the function of thespokespersons of the fund share holders’ benefits. Third, the new law makesappropriate adjustments to part of the provisions of the public fund. it changes theapproval system into registration system, weakening the prior intervention of theexecutive. And the new law raises reform program for funds internal governance,strengthening the supervision of fund managers. Fourth, the new law increases thefund manager and fund trustee supervision. For the first time are shareholders andfund managers under the ambit of the actual control. In addition, the new law adoptsa " clear " approach on the "Rat " issues resulting from related transactions and treatsrelated party transactions of a different nature.Fifth, the new law provides a specialchapter fund services agencies and industry associations. It provides legal obligationof fund services,and the obtaining of legal status of industry associations to obtainlegal status means that the fund industry self-regulation will get more space.Of course, there are also shortcomings in the new law in addition to the abovesystem of innovation, such as lack of innovation organization, and non-public fundraising legislative gaps, etc.. You can take the "management approach " or "Rules "which will be clarified by the securities regulatory authority under the State Councilin practice...