Fund supervision refers to the supervision department using legal, economic and necessary administrative means to supervise and manage the behavior of fund market participants. The supervision system consists of supervision objectives, principles, institutions, objects, contents and means. For your convenience, let's take a look! Let's share with you the principles of fund supervision. Welcome to read!

What is fund supervision?

Fund supervision refers to the use of legal, economic and necessary administrative means to supervise and manage fund market participants.

Fund supervision is of great significance for maintaining the good order of the securities market, improving the efficiency of the securities market and protecting the interests of fund holders. It is an indispensable part of the securities market supervision system.

The goal of fund supervision

The goal of fund supervision is the starting point of all fund supervision behaviors.

Securities supervision has three urgent goals: first, to protect investors; The second is to ensure the fairness, efficiency and transparency of the market; The third is to reduce the system crisis. These three objectives also apply to fund supervision.

The objectives of China's fund supervision include:

(1) Protecting the interests of investors

Protecting the interests of investors is the top priority of fund supervision. Investors are the supporters of the market, and protecting and safeguarding the interests of investors is the primary goal of fund supervision in China.

(2) Ensuring the fairness, efficiency and transparency of the market.

In the securities market, disclosure ensures high efficiency and complete disclosure of information, so that investors can see that the securities market is safe and there is no insider trading.

(C) reduce the system crisis

Regulators should require fund management institutions to meet capital adequacy ratio, specific operating conditions and other prudential requirements.

What regulators should do is: ask investors to limit the crisis they bear to their ability and monitor excessive crisis behavior.

(4) Promoting the standardization of the fund industry.

Principle of fund supervision

(A) the principle of supervision according to law

Fund supervision belongs to administrative law enforcement. As a law enforcement agency, the establishment of a regulatory agency is regulated by law, and its authority is also given by law. Therefore, the fund supervision department must establish the concept of supervision according to law.

(B) the "three public" principle

Fund is one of the important participants in the securities market, and the principle of "openness, fairness and justice" in the securities market is also applicable to the fund market.

The principle of paying equal attention to supervision and self-discipline

The state's supervision of the fund market is the guarantee of the market, and the self-discipline of fund practitioners is the foundation of the market.

(4) The principle of continuity and effectiveness of supervision.

Fund supervision should follow the principle of continuity to avoid ups and downs and affect the normal operation of the fund industry. On the other hand, we should adhere to the principle of effective supervision in fund supervision. To properly handle the relationship between regulatory costs and regulatory benefits, it is necessary to ensure that the market can self-regulate and cannot supervise; If supervision is necessary, the supervision cost should be reduced as much as possible on the premise of ensuring the efficiency of supervision.

(5) The principle of prudential supervision

Legal system of fund supervision

The legal system of fund supervision is an important part of the fund supervision system.

With the Securities Investment Fund Law as the core and various departmental rules and normative documents as the supporting system, we will improve the fund supervision laws and regulations system.

The purpose of these legal norms is to urge fund management enterprises to improve their governance structure and internal control and prevent the benefits from being transferred to insiders for control; Strengthen the supervision of fund investment and operation to ensure the compliance of fund operation; Improve and strengthen sales supervision; Improve the supervision of fund information disclosure; Strengthen the qualification management of fund practitioners.