Study On The Legal Control Of Security Analyst

Security analyzing industry starts relatively late in our country. After a transient prosperous scene which was obtained because of stock owner immature blindness, its self problem is being exposed constantly, the position of this job declined to an enormous extent from then on too, and this industry has become "the rising industry while declining ". But I think this industry should be orientated reasonably. Under the guide and standardizing of the law, it will play an important role in promoting the information flow of security market, dealing with the information asymmetry question, impelling the market mechanism to function effectively and market supervision. The first part of this text begins from recommending the investment analysis of the securities. And concretes concept of the security analyst of our country by combining the foreign definition to the developing history of this industry in our country. The first part also points out that the analyst is different from "stock reviewer "in the habit meaning and correct the mistaken idea at the same time. The second part of this text takes the role acted by law in promoting the perfection of the market mechanism and the function of security analyzing industry in nowadays for examples to describe the important academic and realistic meaning in developing the industry. First of all, the security market of our country is still very substandard. A very important reason is that it has been intervened excessively by administrative strength for a long time that the market mechanism can't function effectively in it yet. Setting-up and functioning rationally of the market mechanism is due to the abundant circulation and relative symmetrical of the market information among the every body of market. But the problems of these two respects are still very serious in the security market of our country at present. Secondly, because economic law is the law regulating the relationship of economic management, I think its basic function mainly reflects in two aspects (1) Maintaining market mechanism high-efficient, science-functions, namely promoting themarket development, remedying the market defect. (2) Controlling and affirming the right to the economic management function of the country, namely remedying the failure of government. The second respect is not the concern of this text, so I ignore it. Although the socialist market mechanism of our country has already made certain achievements, it is still very immature. Under such background, I think the action of economy legal system that promoting the market mechanism should be more important relatively. Get back to the realistic problem of security market of our country mentioned above: though securities supervision department adopt various kinds of means to strengthen and standardize the content and form of disclosure of information constantly already, function is limited. Because the listed company is regard as "economic people" in the typical meaning, will try every means to escape when the cost of disclosure of information is greater than the income, this is very difficult to avoid in meaning of economics. Meanwhile, investor is verydifficult to obtain and utilize information effectively because of the limitations of one's own ability. The important task that therefore promoted information flow and utilized has left to a great extent on body of the intermediary such as security analyst. Thus we can say that: the Economy legal system's historical mission of cultivating security market and leading market mechanism to operate effectively will fulfill, to great extent, by carrying on the structure to the intermediary trade of market such as security analyzing industry. The third part has described two respects factor inside and outside restricting security analyzing industry's sound development in method of analyzing with the real example. Internal cause namely are various kinds of conflicts of interests met in analyst's operation course among them: related trading with the company where one stays; related trading with the companies analyzed; Influencing the honest fairness of one's analytical work because of involving one's own stocks held; Collude in big stockholders, etc.These conflicts of interests are the main reason of the analyst to release the false analysis report on purpose, mislead investors. The external cause is that the whole security market of our country is short of the norm at first. The security analyzing industry is one of the participants of the security market; therefore, a normal security market is a prerequisite of securities analyst's operation. Secondly, after entering the WTO, in the face of the upcoming foreign counterpart, the pressure of security analyzing industry of our country is very great. The fourth part is the key of this text. Because the content of this part is too much, I divided it into two chapters to describe. In the first chapter I give my own suggestion in building good external development environment for security analyzing industry and lead its own quality to rise by the safeguard of law. The former is mainly including pursuing the whole circulation system and perfecting the disclosure of information of listed company. Because whole circulation system can rich minoritystockholders' investment choice, make them have realistic foundation to exercise the right of " voting with the foot. "This is main goal of operation of security analyzing industry too. The analytical work of the securities analyst is due to the support of disclosure of information of the good will of listed company, therefore, the normal information announcing system is another fast-developing foundation stone of analyzing industry. The latter mainly includes standardizing the job and the entering system, expanding it's own business scope etc. accurately. The latter chapter has discussed the question of legal structure to the unlawful practice of analyzing industry, Mainly with the clue of prevention in unlawful practice, what kind of responsibility should bear, how to investigate the analyst' responsibility. In prevention of the unlawful practice, it draw lessons from relevant laws of U.S.A. and Hong Kong area about regulating conflicts of interests faced toward securities analyst and offer the suggestion to perfect our own law, in order to cut off these conflicts of interests through systemdesigning and reduce the possibility of analyst to violate the rules and regulations. About the question of bearing responsibility because of the analyst and his organization's violation of rules and regulations, I mainly discussed the civil liability it should be born because of false state. And I figure that the nature of the responsibility should be tort responsibility by regard of the responsibility foundation and the protection of investor's interests, etc. in this part I also give the corresponding view about the definition of third people and the principle by the responsibility. In discuss the victim how to investigate responsibility, I point out the deficiency of existing Lawsuit way of the false stating case--- Representative's Lawsuit System in our country at first. Then I introduced the Group Lawsuit System of America and analyze advantage that we can draw lessons from this system. For example, we can broaden the scope of selecting the lawsuit representative and expand the scope of application of court's judgments. Because the amends for stockholder often is enormous,analyst and the organization are unable to withstand this kind of risk by their own capital source. At the same time investor rights and interests can't be compensated either. In order to make the rights and interests of investors suffered a loss compensated efficiently, and also in order to reduce the professional risk of the security analyzing industry, the last part of this text put forward the idea of setting up the securities analyst's liability insurance and the compensation fund system.