Research On Look-through Supervision Boundary Of Asset Management Products In China

The development trend of mixed operation in the asset management industry has brought great impact on financial supervision in the era of big asset management.Mutual investment among various asset management products has produced cross-products.The phenomenon that the extension of investment chain in the asset management products among cross-industry and cross-market,the complexity of transaction structure and the lack of transparency for transaction information are widespread.Under the separate supervision system in China,the problems of regulatory gap,regulatory arbitrage and supervision overlap still exist,which have generated difficulty to implement effective regulation by the two current financial supervision models.In order to solve the regulatory problems and prevent the occurrence of systemic risks in the financial industry,the Look-Through regulatory concept has become an inevitable choice,which emphasizes identifying the essence of financial products and trading behaviors through the surface trading pattern of financial products,connecting the source of capital,the intermediate links and the final investment,and discerning the nature of financial products and business conduct according to the principle that substance over form.This paper found that,financial regulatory agencies have formulated a series of normative documents or special action plans for Look-Through supervision in the process of law enforcement.With the issuance of the New Regulations on Asset Management,the strictly unified and Look-Through supervisory measure has basically covered all stages from the issuance to the end of the various asset management products.However,the normative documents,including the New Regulations on Asset Management,are still not clear enough for the Look-Through regulatory norms of asset management products.Lacking operability and widespread over-regulation give rise to the boundary of Look-Through supervision getting more and more vague,and there are still many controversies about how to apply Look-Through supervision in practice.In the context of the development with the mixed business of financial industry,this paper suggests that we must fully consider the rationality and effectiveness of Look-Through supervision and determine the reasonable boundaries for implementing Look-Through supervision of asset management products,so as to promote financial innovation,protect the legitimate rights and interests of financial institutions,andtake into account the balance of interests between financial institutions,financial regulatory agencies and investors.In addition to the introduction and conclusion,this paper is divided into four parts.It takes asset management products as the research object,and intends to adopt literature research,comparative research and case analysis.The first part introduces the two existing supervision modes of the asset management products,and proposes that under the current supervision mode,it is difficult to implement comprehensive and effective supervision for the cross-border asset management products in the era of big capital management.The coexistence with regulatory gap,regulatory arbitrage and supervision overlap have led to frequent risks in the financial sector.In order to eliminate the above problems,effectively prevent and resolve systemic risks,the regulator suggest to break the identity label and start from the essence of financial business to implement Look-Through supervision of asset management products.Then it introduces the connotation and essence of Look-Through supervision,analyzes the necessity of Look-Through supervision,and summarizes the legal practice of Look-Through supervision,which lays a foundation for the later research.The second part uses the research results of the first chapter and takes the supervision case as the entry point and analysis perspective,to elaborates on the main problems of Look-Through supervision in China from the following three aspects: over-regulation of asset management products,formalization of regulatory rules,expansion of administrative power and cross-border investment.The third part proposes the positive effects to determine the Look-Through regulatory boundary of asset management products under the current unclear boundary for Chinese Look-Through supervision.First,it can avoid harming the legitimate rights and interests of enterprises,so it plays an important role in protecting business secrets,business autonomy and business freedom.Second,it can reach the balance of interests among financial institutions,investors and other market participants.Third,it can avert financial suppression and encourage financial innovation.Combining the problems of the Look-Through supervision in the second part,the fourth part puts forward the specific countermeasures to construct the Look-Through regulatory boundary of Chinese asset management products,which includes the following three aspects: Firstly,refining the Look-Through supervision rules;secondly,formulating the statutory procedures for Look-Through supervision;finally,establishing an information Sharing system for Look-Through supervision.