On The Civil Tort Liability Of Sponsor For The Third Party

The sponsor, whose main role is to protect the rights and interest of the investors, sit infront of the door of security market as a gatekeeper. This thesis mainly analyzes the civilliability of the sponsor for third party.The first chapter describes the origin and contents of the obligations of the sponsor for thethird party. As we know, substantial direct legal relationship does not exist between thesponsor and the third person. The obligations of the sponsor of the third person derive fromthe law which burden the sponsor with duty directly. There are two main obligations involved,the obligation of care and the obligation of loyalty. The obligation requires the sponsors to bedue diligence, due diligence, strict compliance with laws and regulations when the sponsor inthe performance of his duties. While the sponsor is asked to announce the issuer informationto investors accurately, completely and timely is its significant characteristic.In Chapter Two, the author discusses the constitutions of tort liability of the sponsor for thethird party. Sponsors could breach the obligations in two ways, respectively, for breach of theobligation of care and breach of the obligation of loyalty. The behavior of breach specificallyand illustrated them with real cases. In order to define the loss of third party, the authormainly discussed the definition of a third person and the calculation of loss. As long as theinvestor’s loss is out of the trust of sponsors for securities transactions, it should berecognized that there is a causal relationship between the sponsor’s behavior with third partylosses. If the material still appears false statements after the review of the sponsor, it can bepresumed that the sponsor has subjective fault.The third chapter deals with taking legal action on the sponsor. The sponsor can bear thecivil liability alone when the issuer has no fraudulent behavior. In the situation of the joint tort,when the investor brings the sponsor in front of the court, the issuer must be sued as well. Butwhen the investor sue the sponsor, it is not necessary to sue the other intermediary organtogether. The representative sponsors can not be responsible to the civil liability for the thirdparty alone. And in a particular case, the representative sponsors will be jointly and severallyliable with the sponsor.