The Legislation Honesty Private Equity Fund Intermediaries

With its high profits coming along, the PE market has been increasing rapidly in China.But the corruption in the PE market is getting worse, which blames the legal system of ourcountry for lacking the perfectness in PE market controlling as those systems abroad.Intermediary service agencies plays "beautician" role in the operation of the market. Theseagencies can help the companies which have lot of questions in businese complete the listingin near-perfect packaging. This brings to the normal operation of the capital market and creditcrisis of moral hazard for the future operation of the capital market order to buy the risks.Facing the problems of this nature, need to solve the credit absence of intermediary serviceinstitutions from the aspects of system construction, legal system construction. To safeguardChina’s capital market development toward benign direction. Therefore, the integrity of theconstruction of capital market intermediary agencies as the breakthrough point, legislationand regulation of PE corruption.This article is totally divided into four parts. The first part relates the concept of PEsecurities intermediary institutions’ good faith. Because of PE securities intermediaryinstitutions have special role in the economic, its scope of good faith is important to the legalconstruction.The second part is analysis of the PE corruption. The first is the description of what is PEcorruption, then describes the performance of PE corruption. Finally, the reason is corruptionPE analysis. By combining with the characteristics of the private equity fund market, explorethe direction of reform.The third part is a foreign private equity fund intermediaries legislation overview onintegrity issues. Which is compared to each other. Departure from China’s actual conditions,indicating that revelation.The fourth part is the credibility of our private equity funds intermediaries, from a legalpoint of view of economics, the proposal put forward legislative regulation. The purpose is topromote the healthy development of private equity fund market.Conclusion pointed out that the purpose of writing this article is to provide sometheoretical reference for the integrity of the building of private equity fund market。So PEcorruption issue can be resolved.