Research On Fiduciary Duty Of Private Equity Fund Managers

With the continuous development of the private equity market,private equity have become more and more popular among investors.However,their high returns have brought high risks,among which the failure of private equity fund managers to comply with their fiduciary duty has caused losses to investors.At present,it is difficult to protect the interests of investors due to the manager's breach of fiduciary duty through judicial relief.Therefore,the purpose of this paper is to study the shortcomings of fiduciary duty of managers under the current legal framework of China,and find a perfect method to solve the problem,so as to reduce the investment risk of investors,protect the legitimate rights of investors,promote the prosperity and development of the private fund market.The research content of this paper is divided into four parts.The first part introduces the current situation of breach of fiduciary duty of private equity managers in China,including violation of criminal law and difficulty for investors in protecting their rights.In addition,it outlines the fiduciary duty of private equity managers,and analyzes whether there is a fiduciary relationship between managers and investors,as well as the following four aspects:The characteristics of fiduciary duty between public fund managers and private fund managers are compared by market regulation mechanism,manager access threshold,investor supervision cost,private law constraint and industry self-discipline,so as to demonstrate the necessity of fiduciary duty of private equity managers.The second part of the article mainly through the present stage of China's private equity manager fiduciary duty to explore the status quo,respectively from the perspective of legislation,judicial,administrative supervision.In terms of legislation,the author discusses the direct and indirect provisions of fiduciary duty in current laws and regulations.The judicial aspect through the practice of judicial cases and judicial relief to explore the situation;In terms of administrative supervision,this paper mainly discusses the current administrative supervision mode and cases in practice of fiduciary duty of private equity managers in China,and then leads to the study of the third chapter.The third part of the article mainly through the existing private equity fund manager fiduciary duty in the application of existing problems comb and analyze.In theory,it mainly demonstrates the alienation of the relationship between theory and practice;in terms of norms,it expounds the incomplete and detailed problems in China's current legislation;in terms of judicature,it expounds the difficulties in the relief of investors in China's current private law;in terms of administrative supervision,it specifically analyzes the problems of unclear regulatory departments,loose access requirements,small information disclosure requirements,and too minor punishment consequences.The fourth part of the paper puts forward Suggestions for improving the application of fiduciary duty in China in view of the existing problems elaborated in the previous part,and puts forward Suggestions and Suggestions from four aspects:theoretical integration,improvement of legal norms,improvement of investors private law relief approaches,and strengthening of administrative supervision of managers through reference to foreign experience and construction of scenarios in different stages of private equity operation.This paper innovatively combines the newly issued civil judgments on fiduciary duty of private equity managers in recent years,classifies,summarizes and analyzes them,and applies them to all forms of private equity funds in China,so as to make fiduciary duty more widely applicable and more specific dispute resolution standards in the treatment of disputes related to private equity fund managers,so as to better solve the application of fiduciary duty in China,make it better integrated into China's judicial system,and provide further investment guarantee for investors,reduce investment risks,and promote the better development of the market of private equity funds.At the same time,this paper innovatively applies the fiduciary duty of the private equity fund manager in our country,constructs the scenario of four different stages of fund operation,elaborates and divides the fiduciary duty that should be followed in different stages in detail,a total of 12,providing a complete system for the specific application of fiduciary duty theory in the field of private equity fund in our country.