Investment Manager Legal Liability for Mutual Fund Losses Associated with Disgorgement Fund for Investor Protection

In managing investors' funds, sometimes investment managers often make mistakes or commit crimes that cause losses for investors. Accountability given by investment managers is often unable to meet the demands given and this is what causes a lack of legal protection for investors. Based on the results of the analysis carried out, the results obtained, first the current investment manager can provide a form of criminal and civil liability. Second, the role of the Disgorgement fund works more effectively than filing a lawsuit for civil compensation to the court or outside the court, which is more difficult to prove and the implementation process. Third, although the presence of the Disgorgement fund has several advantages over other legal protections, this cannot be separated from the drawbacks in the application of the disgorgement fund as well.