On Civil Liability For Securities Investment Advisory

The securities investment advise is the industry which provide the professional analysis and recommendation advise of security, and these business are constant and main, and this industry give serve to investor who conclude natural person and legal juridical. Because of securities investment adviser's function, such as to lead investors' reasonable investment, urging the company provide the right and promptly information and to facilitate formation of transparent and effective security market, furthermore, because of their professional knowledge and information advantage, so foreign country regulate the civil liability in the securities investment advise ,in order to avoid and prevent illegal behavior in the securities investment advise. Consequently in our country we should regulate civil liability of securities investment adviser, in order to forbid engender illegitimacy action for instance misrepresentation, insider trading and manipulation, when the securities investment adviser have been providing special service, advance the development of securities investment advisory industry, and enhance professional level of securities investment adviser. On the other hand the regulation of civil liability of securities investment adviser is propitious to protect of investors. Nowadays the regulation of civil liability of securities investment adviser has some aspects which were desiderated, we should regulate the civil liability of illegitimacy action of securities investment adviser for instance misrepresentation, insider trading and manipulation, which should base on the characteristic of securities investment advisory industry , the special situation of our country and advanced experience of the west country. At the same time, for the sake of investors' interest the professional liability insurance and caution money of securities investment adviser are also needed to design.