Enlightenment From OECD Countries Enterprise Annuity Fund Regulatory System For China

As the improving of the people’s standard of living, People’s demand also increases for old-age security income accordingly. Only rely on the basic pension insurance provided by the government is difficult to meet the need of the old-age life. The basic policy about the endowment insurance system is "wide coverage, basic security, multi-level"; the Enterprise Annuity is the main way to improve the level of employees’ retirement pension. The Enterprise Annuity has two attributes, financial property and guarantee, in which the reason that operate into the capital market for protection of interests. Because the risk of principal-agent and management consist in the process of pension fund operation, so the government departments must supervise them.Different countries have own characteristics about the development level of financial market, investment management institutions and law that effect how to set the government regulatory agencies, contents and choose the supervising models. Compared with the developed countries, we still lack the experience in the Enterprise Annuity fund regulation and on the starting stage. As a result, this paper which analyzes the current situation and problems of Enterprise Annuity of our country and the successful experience and the developments trend of regulatory models from some of OECD countries, and gives some suggestions and proposals to improve China’s Enterprise Annuity.The first chapter of this paper introduces the study background, research meaning and makes comprehensive review of theory about models, points and Literature from domestic and overseas scholars, and some concepts about Enterprise Annuity, this paper’s framework. Summarize this innovation and deficiencies.The second chapter main introduces three classical theories about regulation. Those theories include Public Interest Theory, Public Choice Theory and Economics of Regulation and makes discussion of those theories application in pension fund regulation. The Public Interest Theory provide theoretical basis for the government departments take charge of pension fund operation in the financial markets. According to Public Choice Theory, trustee and others participant are belonging to opposing parties of interests in the process of pension fund investment and operation. Then based on this theory, we will know government how to balance regulate interests and lose between the opposing parties. The Economics of Regulation as theoretic tool discuss the process of regulation, and then illustrated when and how implement the regulation of government by Microeconomic Theory.The third chapter presents the relationship during the trustee, the investment manager, the account manager and the custodian of the fund, the relationship among those participants, regulators and intermediaries by introduces China enterprise annuity scale and investment operation process. And then, introduces the qualification requirements for those participants and enacted laws and regulations for supervision of the enterprise annuity. By analyzing the reasons of our country choose Quantitative Portfolio Regulation model, pointed out which and how to addressed and improved the responsibility divided during different departments, the construction of laws, tax, investment channels, guarantee mechanisms, as well as information disclosure system.The forth chapter select the four major OECD countries, include England, American, Japan and Germany, to analysis those countries’enterprise annuity regulatory system. By analysis and summary typical countries, compares two classical regulation model, namely Quantitative Portfolio Regulation model and Prudent Person Rule, which analysis applicable conditions, the advantages and disadvantages, investment income and investment risk, which offers experiential consultation and theory foundation for choice of our country’s enterprise annuity regulatory model.The fifth chapter based on front conclusion, and studies in the trend of the annuity regulatory model both developed and developing countries to provide a reference for China’s enterprise annuity regulatory reform from o the development of regulatory approach of the Chile enterprise annuity. The last, from enterprise annuity regulatory regime, regulatory mechanism, tax and so on, to improve and perfect China’s enterprise annuity regulatory, and promote some innovative ideas in the fund investment and risk compensation mechanism.