The Research On Legal System Of Securities Company Supervision

Securities Company is one of the operating subjects in the securities market, which plays a very important role in the securities market operation. Firstly, securities company provide commercial services for investors during their investing activities and an effective way for the smoothly investment objectives. Secondly, securities company plays the role as the intermediary between the investors and the issuer. Through the underwriting activities, securities company helps investors establish contact with the issuer and achieve their respective financing or investment purposes smoothly. Thirdly, the business activities of securities company are the major factors for the operation and development of the whole securities market.Due to the excessive relax regulation, the Subprime crisis is broken out by Americans in 2008, Bear Stearns Cos. and Merrill Lynch were bought successively; Lehman Brothers bankrupted; Morgan Stanley and Goldman Sachs turned into bank holding company, and accepted the Federal Reserve's supervision, the mode of independent investment Banks was ending in Wall Street. Caused by the chain reactions and then the global financial crisis, the impact of the entity economy is still spreading and deepening in our country and the other countries all around the world. Lacking effective supervisions and risk control to the securities company are the primary reasons. In the crisis management process, the securities company supervision is very significant. It is not only possible to strengthen the risk control of financial derivatives, change the enterprise risk management concept, but also to enhance supervision, adjust the current mode, In China, the securities company supervision system is still not perfect, and the new framework of China's securities is gradually forming right now. As the core of our securities, securities company's operational characteristics determine its operators can easily make use of their advantages to embezzling clients' money and manipulating the market, then damaging interests of the shareholders and the investors. Therefore, it is practical significant to adopt effective measures to strengthen supervisions for securities firms and perfect China's securities' regulation framework at present. In this thesis, I elaborate the content of the legal system of securities company supervision, and respectively introduce the content of the securities companies'market access regulation, market operation regulation and market exit regulation, and offer a proposal from these perspectives.The thesis includes four parts.In the first chapter, I summarize the securities company supervision legal system, and introduce the concept of the securities company and the legal system of securities company supervision, the characteristics and classifications of the securities company, and indicate the necessity of establishing the legal system of securities company supervision.In the second chapter, I elaborate the content of the legal system of securities company supervision from the perspective of the securities companies' market access regulation, market operation regulation and market exit regulation.In the third chapter, I emphasize the problems of legal system in the supervision under the current situation of China's securities company regulation. There has been many problems in the market access supervision, such as the higher threshold of shareholders'admittance, the business scope prescribe severity, and so on. In the market operation supervision, the problems focus on administrative supervision, self-discipline management and internal management deficiencies, the insufficiency on the innovative business supervision. In the market exit supervision, it also has many problems, such as the passive way of supervision, and the lack of the investor benefit protection mechanism.In the forth chapter, I put forward some suggestions. In the market access supervision, we should "Keep the tail from wagging the dog", relax shareholder access requirements and business scope appropriately, only in this way can we enhance security companies'vitality. In the market operation supervision, we should adjust the way of supervision in business operation of securities company, perfect the supervision of innovative business as soon as possible. In the market exit supervision, we should change the passive exit primarily way, and strengthen the protection of the interests of the investors.We should hold the "degree" of the supervision in the background of strengthening the supervision; achieve "tempering justice with mercy". We should not only keep the development power of securities company, but also regulate its behavior and this requires the joint efforts made form the regulatory department, securities companies, lawmakers and relevant public.