Research On The Supervision Responsibility Of Private Fund Custodians To Fund Managers

In recent years,the total scale of China's private equity fund(PEF)industry has grown rapidly,and its supervision has been strengthened year by year.However,there are still many problems in the PEF industry supervision.Therefore,China still has a long way to go to research and practice the supervision system of the PEF industry and fund trustees.In addition,existing research still has different opinions on the application of PEF law,the legal relationship between the three entities of the fund,the liability boundary of the fund trustee,and the determination of default.The supervisory responsibility of the fund trustee is borrowed from foreign fund trustee system,but there are some differences.This responsibility is established by the "Securities Investment Fund Law of the People's Republic of China" and is used to make up for the lack of external supervision of the "one bank and three committees".The purpose is to strengthen internal supervision and stifle violations of laws and regulations in the cradle.Therefore,the clarification of the legal relationship between the three entities of the fund and the legal status of the trustee should focus on the better legalization of the fund trustee,and maximize the effectiveness of its supervision within the capabilities of the fund trustee's supervision.The legislative purpose of the fund trustee system determines the need to clarify the trust legal relationship between the fund holder and the fund trustee,so that the fund trustee shall undertake the supervision responsibility of the investment operations of the fund manager that he knows or should know.In all aspects of PEF,including the qualification review of funds and fund managers,the supervision of investment operations,information disclosure and other matters,the prevention of rigid redemption,and other illegal acts,this supervision responsibility can be reflected and have positive effects.It is necessary to improve the PEF trustee system.In addition to clarifying the legal relationship between the three entities of the fund and the responsibility boundary of the trustee,the "Fund Law" should also adjust the entities to cover all private equity funds.A systemic mechanism for the supervision and feedback of fund trustees should be established.The supervision and feedback of fund trustee should be improved.And the laws and regulations of PEF should be further perfected.It is also significant to strengthen the trustee's ability to perform responsibilities and encourage them to hold accountable for their omissions.Only in these ways,can the PEF trustee supervision system be effective.