Research On The Legal Problem Of Trust-type Capital Venture Fund

Trust system stems from England and developed in America and Japan. Trust system in our country has been through about thirty years since the reform and opening-up policy introduced to China. To further the development of trust business, China Trust Law has been enforced in 2001, and China Banking Regulatory Commission(CBRC) thrashed out a series of related regulations. All these measures improve the legal system and meanwhile laid the foundation of the development of Trust-type Capital Venture Fund. As an innovative financial product, Trust-type Venture Capital Fund has a long-promising future in capital market and plays an increasingly important role in China’s financial market. This essay is intended to discover the concealing problems faced in the process of development and finally come up with accordingly solutions.The first chapter started with the conception and characters of Trust-type Capital Venture Fund and clears the meaning of this fund by comparative study with some confusingly similar concept. And then makes analysis with multiple legal relationships between the referred subjects.The second chapter lays emphasis on the overall legal environment and problems we are facing today, such as illegal fund-raising issues in fund-raising phase, the impossibility of trust registration due to the defect of registration system of trust property, the lack of proper supervision of fund manager, the heavy tax burden caused by the particularity of trust business, the IPO exit channel is stuffed, the ambiguous answer of regulation subject and etc. Meanwhile this paper puts forward the reasons for these problems.The last third chapter is the core part of this essay. After analyzing the existing problems raised in chapter two, here come the solutions accordingly. First, to solve the illegal fund-raising problems, we need to rely on legal ratification by regulation department to regulate the behaviors of fund sponsors. Second, as for the problem of registration system, it can be worked out only by the transformation of processing pattern “without the registration, without the real right effect”. Another approach is to carry out a nationwide rule and detail the items during the registration process. Third, talking about lacking proper supervision of fund manager, the crucial point is to set up an information disclosure system to strengthen the fund trustee’s own management, also we can establish a trustier commission to form a dual regulation with trustees, in that way, thesupervision problems of fund manager can be resolved. Forth, to settle the heavy tax burden problems, one possible way is to guarantee preferential tax policy of Trust-type Capital Venture Fund and also put the tax burden on the one who favors from the fund.Fifth, since the IPO exit channel is stuffed, we should put forward regulations exclusively for Trust-type Capital Venture Fund and explore multiple ways to exit the target enterprises such as growth enterprises market and “new three boards”. Finally, the ambiguous answer issue of regulation subject, I propose that it is necessary to build a coordination mechanism between different regulation departments. At the same time, the registration model is to put the fund institute first, administrative regulation second.