| Summary: | 碩士 === 國立臺灣大學 === 法律學研究所 === 107 === This article studies the activities of private equity funds (PE funds) in Taiwan, and discovers that PE funds are constructed in corporation structure based on the company and limited partnership information list. The author argues that such structure spare PE funds in Taiwan from being regulated as funds──investment trust──under Securities Investment Trust and Consulting Act (SITCA). Yet, on the other hand, PE funds may strictly regulated as securities investment consulting or full fiduciary discretionary investment. These results not only imply that PE funds are under high legal risks in Taiwan, but also highlight the lack of regulation of “Investment Companies”.
The author also studies laws of U.S. and suggests three possible ways to resolve the existing issues. First, the legislation of investment company act to regulate funds organized as corporation apart from SITCA. Second, the redirection of regulation orientation of SITCA and adoption of exemption and anti-fraud provision. As the regulation mechanism switch from contractual relationship to the substantial economic activity, both investment company and securities investment trust can be regulated under SITCA. Besides, the adoption of exemption and anti-fraud provision for private funds can reach the balance between investor protection and the development of funds. Last, considering the foreseeable difficulties of legislation, expand the application of section 8 of SITCA (anti-fraud provision) to include PE funds may be a feasible alternative to achieve an acceptable investor protection in the market.
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