The Research Of Securities Broker’ Violations Fiduciary Responsibility

With our securities market making astounding advances, illegal behaviors of thesecurities market follows, particularly the breach of fiduciary behaviors of securitiesbrokers. The breach of fiduciary responsibility of the securities broker refers to thecivil liability they should undertake which includes the breach of statutory orcontractual obligations, infringement of the legitimate rights and interests and causingloss of others. It is a liability of compensation for damage, a strict agent, and is a civilliability for both violation and infringement. In many parts, breach of fiduciaryresponsibility of securities broker is similar to the civil liability of securities fraud.We must make difference between them, and then we can make good use of theregulation of the latter one to improve the regulation of the former one. Formation ofthe breach of fiduciary responsibility of securities broker must meet the followingelements: the previously existing securities broker breach of fiduciary behavior orbreach of contract, the established fact victim’s damage, a causal relationship betweenthe damage behavior of securities brokers and victims, fault of securities broker.Confirming the doctrine of liability fixation of breach of fiduciary responsibilitymakes important and realistic significance. It must analyze according to the specificbreach of fiduciary behavior of securities broker under the rule of strict responsibility.Securities brokerage must go through four basic links to finish the transaction, that is,commission for opening commission, authorization transaction, auction transactionsand delivery of liquidation. Researches on the breach of fiduciary responsibility ofsecurities broker should be identified from securities brokerage activities. Maincharacter to undertake the breach of fiduciary responsibility contains SecuritiesCompany and individual securities brokers, and the forms of responsibility includesresponsibility breach of contract or tort liability. When two or more securitiesbrokers cooperate to do breach of fiduciary behaviors, there must make clear therelation of responsibility sharing and division. At the same time, from the legislationand theory of foreign countries, we can absorb and make good use of the specificsituation for breach of fiduciary behavior to relief in those countries.