Discussion Regarding The Improvement Of The Information Disclosure System Of Private Equity Funds

Private Equity funds(“PE”)have been gradually developed into an important source of China's physical capital,which are regarded as the barometer of the Chinese economy.The steady and orderly development of the PE market plays a vital role in promoting China's supply-side structural reform and innovation-driven growth.However,in the development of PE,shortcomings of legal supervision have always been a critical issue.The interests of investors are not duly protected and financial risks are not effectively regulated.As an important starting point for PE regulation,the information disclosure system has been expected to “protect the interests of investors and ensure the efficient operation of the market”.However,it is a pity that the current system still has flaws and insufficiencies,which needs to be further remedied and improved.In this regard,this research paper,by analyzing the existing problems of PE information disclosure system in China,based on advanced expertise and oversea experience,proposes some practical advice on the improvement of the current system.This paper has four chapters.Chapter one starts with the concept definition,legal relation and supervision status of PE,and then clarifies the necessity of PE information disclosure system from the perspectives of economics and the science of law.This chapter lays the theoretical foundation and premise for the following discussion.Chapter two deeply analyzes the status quo and problems of China's PE disclosure system from the perspective of legislation and implementation.This chapter proposes that in the construction of the system,there exist two problems that the level of effectiveness is not high and the requirements for information disclosure are not differentiated;in the implementation of the system,the problems of insufficient effectiveness and inadequate accountability for information disclosure are exposed.Chapter three summarizes and inducts the advanced experience of PE information disclosure supervision and legislation in the United States,Britain,Taiwan Province and Hong Kong Special Administrative Region through comparative research methods,and provides diversified perspectives and solutions for the improvement of PE information disclosure system in China.Chapter four,fully draws on the advanced extraterritorial legislative experience,and then puts forward tailored suggestions for system perfection in four aspects.First of all,in view of the low level of legal effectiveness,the author suggests to promote the relevant legislation on information disclosure of PE.On the one hand,it is necessary to formulate departmental regulations on disclosure of PE;on the other hand,a unified Investment Fund Law should be established.Secondly,as for the lack of differentiation of information disclosure requirements,the author suggests to enrich the contents of the current system from three dimensions.Thirdly,the author suggests to improve the information disclosure accountability mechanism from three dimensions,including strengthening the punishment for information disclosure violations,establishing a sound linkage mechanism for information disclosure,and strengthening the relief of civil liability,so as to improve the system's compellingforce.In the last,the author proposes to make up for defects and deficiencies of formal examination and promote its substantiation,through establishing the investment target participation mechanism and improving the third-party institutional review mechanism.