Research On Regulation Legal System Of Investment Of Public Welfare Foundations

The inherent morality attribute of Public Welfare Foundations highly accords with thousands of years of historical civilization of Chinese nation, in the short more than 30 years they have become the core strength for the development of public welfare and charity undertakings of our country. With the emergence of new social issues, their duties and abilities cannot be equal only depending on public donations and government allocations and it is necessary to seek broader investment channels to make their capital realize appreciation. Public Welfare foundation to improve fund use efficiency, to carry out investment activities do not conflict with public welfare purpose, just make up for the shortage of funds, improve the financing capacity of public funds.With media reporting on the improper investment behaviors of Public Welfare Foundations in recent years, the public trust in the Public Welfare Foundations is decreased. Facing such situation, the regulation on the investment behaviors of Public Welfare Foundations gradually comes into people’s sight and gives rise to wide discussion.From the perspective of development history of Public Welfare Foundations of our nation, the regulation on investment behavior experienced three phases, blank,restriction and relaxation. Although relaxation principle is exercised on the regulation at the present stage, various scandals of Public Welfare Foundations happen in recent years,exposing a series of problems exist in execution of regulation on investment behavior of Public Welfare Foundations in our nation, such as, indefinite regulation subject, single regulation pattern, lacking industry self-regulation and short of investment risk control ability, etc. making the investment behaviors lack specification and guidance, and even seriously deviation from purpose of public benefit. Therefore, it is necessary to make self-criticism of the deficiency in regulation on investment of Public Welfare Foundations of our nation, perfect legislation and specific system for the regulation on investment of Public Welfare Foundations of our nation, combined with the current public benefit environment, which are good for standardizing the investment behaviors of Public Welfare Foundations and adapting the development trends of international public welfare foundations.It is supposed to say, the development of Public Welfare Foundations in Britain and America, etc. starts early and the Foundations are relatively perfect, and many countries have regulatory system on the investment behaviors with their own characteristics. The investigation and research on the supervision legal system of overseas Public Welfare Foundations provide referential experience for our country.In the course of perfecting investment regulation system of Public Welfare Foundations of our nation, sound legislative basis shall be firstly perfected to ensure there are laws to abide by in the implementation course of regulation subject; secondly,regulation subject and relevant legal responsibilities shall be defined. At present, public welfare foundations in our nation remain under the double government mode of registration authority and competent business departments due to the historical reasons,and although Charity Undertaking Law cancel the subject of competent business departments, it needs further research on whether registration authority shall undertake responsibilities as the only regulation subject; thirdly, under the present regulation pattern, effective and even forceful implementation of investment activities of public welfare foundation cannot be met, specific regulation methods of regulation subject shall be added, not only risk control shall be made beforehand, but also middle supervision and accountability mechanism after the event shall be strengthened; At last,industry self-regulation shall be perfected and the establishment of third assessment institutions shall be promoted, which guarantees the maximization of limited regulatory resources and promotion of the development of the whole charity industry.