Study On The Appropriateness Management Of Investors In Private Investment Fund In China

Private investment fund has experienced a course from a special-interest financing instrument at the early stage into being putting "in the sun".When time comes to now,the private investment fund has gradually getting into the public view and become a force that should not be ignored in the capital market.The amount of private investment fund investors shows explosive growth.But at the same time,illegal behavior of fund-raising is commonplace in the way of recommending investors inapposite private equity investment fund products of high risk.There is no doubt the interests who pay the money in hard cash suffered huge losses.Financial investor protection is the everlasting theme of capital markets.It is also an important part of safeguarding national security and stability,so it is necessary to clarify the legal status of investor protection to realize the scientific,legal system construction of capital market.In order to promote investor protection,the U.S.securities market began to conduct appropriateness management of investors which has been promoted and developed in the world capital market.To copy with the pace of the development of China’s capital market,our country also timely introduced The Regulation for the Administration Investors Appropriateness of Securities and Futures(hereinafter referred to as "regulation").This regulation requires the operating agency to fully understand the investors and products in the process of selling products,assess and explain the risk scientifically and effectively and put forward appropriate match suggestions.Since then,investor protection has fallen to the ground,no longer a"toothless tiger",which has further standardized the business practices of private investment funds.However,seeing from the existing practice,on the one hand the use of simple score method of risk assessment questionnaire is unable to realize accurate classification of investors.On the other hand,it also can not reach the standard of the match for the financial products.So in this paper,on the basis of the theoretical basis and practice at home and abroad combing investors appropriateness management,combined with the classified method of behavioral finance of investors,the writer connected with private equity investment fund style evaluation through investor risk appetite and risk appetite to build the bridge between the investment and with the product.Also,the paper provides a reference method for financial institutions to carry out the private investment fund investors appropriateness management.Furthermore,his paper combining with the requirements of the existing laws and regulations,has established a relatively complete system to launch the investors appropriateness management for private investment fund company.Meanwhile,the writer designed the process of investors appropriateness management,such as investor investigation,investors identity conversion as an operating model to help private investment fund institutions to fulfill obligations,eventually achieve the purpose of investor protection.At the same time,in view of the problem of the lack of consciousness of appropriateness management of investors at present,causing from that the private investment fund have no clear legal responsibility,we should improve the system of financial institutions appropriateness management,through the system and the personnel arrangement of standard operating procedures.Only in this way,can we construction the first defensive line of investor protection.Outside the rules,the supervision organization and financial institution should do more work in investors education,to help investors evaluation of their own capital strength and investment capacity reasonably in the principle of "emptor" to reduce the irrational speculation on the market,thus forming a good market atmosphere to promote the healthy development of capital market in our country.Apart from which discussed before,we should make rational use of financial technology and transform the investor management result into the reference basis of product design to realize the economic benefit of the system.The China’s investors appropriateness management will not be achieved overnight.It is still subject to practice for the continuous improvement of the theory and idea,but its long-term positive impact should not be ignored.Both regulators and financial institutions should take investors appropriateness management as a long-term work to improve all the time to protect the interests of the investors.