The Study On The Investors' Suitability System

With the launch of"Growth Enterprise Market of Investors suitability Provisions"and"stock index futures on the establishment of investment suitability (for trial implementation)", we begin to realize"investors'suitability system". However, the problem is limited to the level of transaction risk, and is not involve the vital of suitability. This article would like to clarify what is meant by"investors'suitability system", types, and its Elements.The article wills analysis separately of security suitability and futures suitability. Divided into three parts, the first focuses on the concept of the system and decided to introduce several factors of suitability.The second part separately analysis of U.S. Securities suitability system and Futures suitability system. In particular: suitability system in self-regulatory organization in the U.S. securities industry, SEC administrative enforcement procedures and federal courts, describing in detail the meaning of securities'suitability; Secondly, why the U.S. futures industry Regulatory Commission and the Futures Industry Association refused to adopt suitability .The reasons for the focus of their use of risk disclosure rules; And the attitude of United States Court of futures suitability, focusing on analysis of how courts view investors'suitability as evidence of traditional fraud; summary obtained ,for high-risk futures industry, we should take suitability system to protect investors and the risk of disclosure rules as a supplement.The third part analysis our securities and futures suitability system. In particular: First, taking the"Securities Law"and"Growth Enterprise Market of Investors suitability Provisions"as a template, explain our system's deficiencies; secondly, with"Futures Act"and"stock index futures on the establishment of investment suitability (for trial implementation)"as a template, analysis the inadequacy of the system. Third, our conclusion is drawn that we should improve our suitability system.The last part is the conclusion, highlighting the financial power to achieve the objectives, institutional arrangements. Improving"investors'suitability system", reasonably control the trading risks while maximizing the increase in transaction volume and liquidity.