Construction Of Supervision System On Interest Conflict Among Securities Analyst

Securities analyst provides investors professional services and plays an important role in guiding investors'rational investment, improving market efficiency, regulating securities market operation and optimizing the utilization of social resources. However, in recent years, the consecutive scandals about securities analyst happened have greatly harm the independence and reputation of securities analyst themselves. These scandals directly caused the investors'loss of confidence, further hamper the development of securities market and capital market, and may even bring an end to the whole securities analyst circle.Relevant research s suggest that the primary reason behind these problems in securities analyst industry is the existence of interest conflict. The world now have a common concern, that is the issue of effectively legal supervision on interest conflict among securities analyst and enhancement of objectiveness and independence of securities research so as to act as"information tube"in securities market to insure full communication of information in securities market and protect small and medium investors'interest. This issue is especially obvious and meaningful in China, which is a country still in its infant of the development of industry on securities analyst. Based on the features of securities market in China, this paper take this as a start-point and draws upon relevant regulatory measures in American, it proposes corresponding suggestions on the construction of supervision system on interest conflict in securities analyst industry.This paper's main body is composed of four chapters, aside from introduction and conclusion.The first chapter give a general idea about securities analyst. This is the theoretical basis for the whole thesis. The author extensively explore the definition, content of securities analyst, and securities analyst's influence on capital market, etc. It also explores the present situation and existing problems in securities market. This paper first defines the connotation of securities analyst, in the meanwhile, it points out the differentiation of securities analyst and securities reviewer. Finally, it expounds on the importance of securities analyst to securities market, and the problems existed , which have exhibited the practicality of this paper.The second chapter is about interest conflict which the main reason behind the existing problems, and mainly analyzes the concept of securities analyst's interest conflict and the reasons behind.The third chapter is the measures suggested for the construction of supervision system on interest conflict among securities analysts. This part is the focus of the whole thesis. The author holds that system construction and operation under the system's guidance will be the right way to get rid of the dilemma in an open market, this will help us promote the sound development of securities analysis profession and provide consistent professional services. Based on the features of securities analyst profession, this chapter first introduces relevant theoretical basics on securities regulation. Drawing upon relevant measures in mature markets and combining concrete examples, the paper places more emphasis on the construction of supervision system on interest conflict among securities analysts on both macro and micro level. Under the guiding principle of"combination of governmental supervision and securities market self-discipline, regulatory concept of emphasis on course rather than result.", the author divides our supervision system on interest conflict among securities analysts into three phases which are pre-, middle, and post- respectively. The three phases have its own focus and each has the function of prevention, bondage, sanction and relief. The author has basically established a complete and systematic supervision system on interest conflict among securities analysts, which is achieved through these measures proposed like higher accession threshold, establishment of service rating system, amendment of"professional ethic rules", construction of"Chinese Wall"system, compulsory information exposure of professional interest conflict, clarification of the legal status of SAFE, intensification of law implementation, clarification of the civil duty of securities analyst, etc.The fourth chapter discusses the relevant issues on supervision system on interest conflict among securities analysts. The author considers that, in China, we should establish the system of securities analysts'duty and exemption as soon as possible, we should also enforce the information exposure of securities analyst's professional interest conflict and allow the securities analysts to hold securities and stocks.