Fund managers must be legal and compliant in managing investment funds, and legal compliance review is required. Compliance review includes the review of investment behavior, contracts and compliance with laws and regulations. To ensure that the fund manager's behavior meets the legal requirements. Compliance review helps to protect the legitimate rights and interests of investment funds, and at the same time, it can also reduce the legal risks borne by fund managers.
Funds are regulated by law. It is strictly forbidden for any private fund company or individual to engage in illegal private fund activities in any name. Otherwise, it will be suspected of money laundering, defrauding the state finances and disturbing the financial order. The establishment, operation, management, operation, expansion, merger, reorganization, bankruptcy, transfer and change of major executives of private equity funds and private equity companies must be reported to the state management agencies for filing and approval according to law.
I hope the above content can help you. If in doubt, please consult a professional lawyer.
Legal basis:
Article 9 of People's Republic of China (PRC) Securities Investment Fund Law
Fund managers and fund custodians manage and use fund property, and fund service institutions shall perform their duties and fulfill their obligations of honesty, credibility, prudence and diligence when engaging in fund service activities. Fund managers should abide by prudent operation rules, formulate scientific and reasonable investment strategies and risk management systems, and effectively prevent and control risks when using fund property for securities investment. Fund practitioners shall have the qualifications for fund practice, abide by laws and administrative regulations, and abide by professional ethics and codes of conduct.