Research On The Application Of Look-through Provision For Private Equity Management

The current situation of the financial market is the basis for the regulatory department to apply the regulatory means.Since the 2015 crash,in the financial market in China has experienced the fuse after the crisis,P2 P boom and a series of chaos,the regulator has determined that shall apply in financial markets is strong regulatory policy,and after nearly two years practices,the Look-through Provision has been verified an effective regulatory means.As private equity asset management products become more and more complex,new types of cases emerge constantly,and the legal relationship becomes more and more complicated.In order to effectively curb regulatory arbitrage in the field of private equity management,break regulatory rules in disguise and other non-compliant behaviors,and reduce systemic risks in the financial market,the regulatory authorities also apply Look-through Provision to the field of private equity management.This paper intends to discuss the application of penetrating regulation in the field of private equity management from the following parts:In the first part,the author first defines the connotation and extension of private equity asset management,and then on the basis of the definition,combined with the current private equity asset management related provisions,analyzes the current private equity asset management industry supervision status.Then,the author discusses the theoretical origin of penetrating supervision from three aspects,namely,the first layer comes from the "look-through clause" in domestic and foreign laws,the second layer draws on the theory of "denial of corporate personality" in the company law,and the third layer,the value selection theory of substance over form.In the second part,the author analyzes the reasons for applying penetrating regulation in the field of private equity management.First of all,based on the incomplete theory of law,the author expounds that the penetrating supervision system is a manifestation of the regulatory department's exercise of its residual legislative power and enforcement power on the basis of the reality that the law cannot be complete.Then the author discusses the necessity of applying penetrating regulation in the field of private equity management from three aspects: the present risk,the need of regulatory arbitrage and the choice of regulatory system reform.Finally,based on the practice,legislation and reform of regulatory technology,the author discusses the feasibility of applying penetrative regulation in the field of private equity management.In the third part,based on the existing laws and regulations and scholars' views,the author analyzes the specific path of penetrating regulation in the field of private equity management.It is mainly divided into three aspects: first,the penetration of the fund side of private equity asset management products is mainly the penetration analysis of the investors of private equity asset management products and their subscription funds;Secondly,the penetrating regulatory analysis of the operating institutions of private equity asset management products;Thirdly,the penetrating regulatory analysis of the asset side of private equity asset management products is mainly carried out from the aspects of product capital investment,the limitation of underlying assets and multi-layer nesting.The fourth part,which is based on the second and third parts,analyzes the key points of penetrating regulation in the field of private equity management.The main points are as follows: first,based on the regulatory boundary problem in the financial theory,it is proposed that a clear boundary should be delineated for the application of penetrating regulation to private equity management.At the same time,based on the incomplete theory of law,the basic method of demarcating boundary is analyzed;Second,based on the current obstacles of penetrating regulation,it is clear that information disclosure system should be improved and financial infrastructure should be strengthened;Thirdly,based on the relationship between the reform of regulatory system and the application of penetrative regulation,the author believes that the financial regulatory system should be reformed to better apply penetrative regulation.For the field of private equity management,efficiency and safety are eternal propositions.From the historical evolution of the American private equity system,its policies are repeatable.The incomplete theory of law gives the regulatory authority legal legitimacy to make such choices.At the same time,when the regulatory authority chooses stricter and safer regulatory means in the field of private equity management,it should also make institutional arrangements to ensure the effectiveness of such means.