The Defects And Perfections Of Investment Consultancy System In China

After almost 20 years'development, the security investment consultancy industry has been well developed. However, there are still many problems: on one hand, a lot of illegal behaviors, such as'black mouth'in stock market, fake prediction, bad service and so on, doing harm to the interests of investors and destroying their trusts. On the other hand, the stock investment consultancy industry can hardly earn money because of few businesses. As a result the investment advisors don't play the role well in providing securities information, enhancing professional level of investors, standardizing operation of corporations and urging the company provide the right and promptly information. So regulations about securities investment consultancy were nearly abandoned when the security law was revised.Quantities of issues in practice reveal the defects of our securities investment consultancy industry. In my paper, I analyze the defects of investment consultancy system in our country, introduce and make comparison of foreign countries'mature systems, and give some suggestions in order to let the investment consultancy system in our country more perfect.There are four main parts except introduction and conclusion in my paper: The first part gives us a general picture of the development status of investment consultancy industry. Many investment advisors can not survive while benefits of investors have been violated in our country. Quantities of explanations have been given, such as immature security industry or investors, bad works of regulatory agencies. But imperfect investment consultancy system is the most important one.The second part analyzes the defects of our investment consultancy system in detail. Five main defections exist in our regulations: imperfect definition of securities investment advisors, too much limitations of business, rough regulations of basic obligations, bad supervision system and poor liability system.The third part introduces the investment consultancy system of foreign countries and districts, including America, Japan and Taiwan of China. There are many good points in their systems for us to learn, for example:'cool-off period','Chinese wall'and penal damage.The fourth part is the primary part in my paper, in which I give suggestions to perfect our investment consultancy system.