A Research On Legal Issues Involving Funds Custodians In China

Fund custodians perform the functions of safekeeping and oversight in the course of operation of the Fund, and are set in favor of the investor. Since the legal status of the fund custodian has been disputed, and the legal regulation is imperfect, the fund custodian did not play its due role.The beginning chapter describes the definition and nature of the fund, and the legal framework of Chinese law of fund are introduced. In the first chapter of the second section describes the definition of the fund custodian. The second chapter is to identify the core issues concerning the legal status of the Fund’s custodian. The first section will primarily bring out varied opinion of Chinese scholar. In 2th section, the British and the German legal system trusts and funds are introduced. In 3th section, by comparing the different legal system, the author not only concerned that the legal status of the fund custodian as a trustee shall be uphold, but also expand the content, of rights and obligations of such legal status. The 3th chapter describes the obligations of the custodians. Firstly, the Chinese law has been introduced, and secondly by comparing the British legal system, the author put forward her own proposals. The fourth chapter focuses on the civil liability of the fund custodian, including the nature of the fund custodian civil liability, the doctrine of liability fixation, judging fault, the scope of damages and exemptions.Therefore, this paper which based on the discussion of the legal status of the fund custodian and the analysis of its responsibilities and civil liability issues,help to promote the operational safety of the practice of the Fund, and effectively safeguard the interests of fund investor.