Study On The Legal Regulation Of Sponsor’s Misconduct

It has been a decade since the sponsor system implemented in China’s securities market in 2004.Reviewing the operating effect during the past decade,we can see the establishment of the system,to some extent,makes up for the deficiency in securities’regulatory model,plays a role in enhancing market discipline and strengthens the functions of market intermediaries.It also builds up a more market-oriented framework in order to develop the capital market continuously,stably and healthily.However,the practice also reflects that the current system still contains some problems, in recent years sponsors suffered the administrative penalty from CSRC one after another because of the misconduct.The occurrence of misconduct reflects many deep-seated contradictions between the sponsor and the internal and external relationships are unresolved,searching for the method to suppress sponsors’illegal impulse has became a hot academic issue under the background of registration system reform.Sponsor is a market entity,sets pursuing maximizing the benefits as the goal of all behaviors.To start the research from analysing the behavior selection mechanism seems to be a new way.This paper runs along the path of posing question-analysing question-solving question,surrounding the theme of misconduct legal regulation closely,and discusses the reasons,standards and suggestions of sponsor misconduct.This paper consists of three parts:introduction, main body and epilogue.The introduction part cards the history of reletive laws,then points out that the current sponsor system is not ideal,while the scholars have been concerned too much about the lack of the system, we need to expand the research perspective.Finally,the ending part introduces the research ideas and overall framework.The first part presents the relevant concepts of sponsor,including its defination, function and responsibility,in order to help the readers understanding the provisions of existing system,sponsor’s work content and its illegal consequences, laying the conceptual basis for the following discussion.The second part conducts a theoretical study of sponser’s behaviour selection mechanism.First,the paper introduces the concept of equilibrium in economic research,and proposes that the unified responsibility, rights and income should be the value-oriented principle in this system.Then use the method of Law and Economics to analyze sponsor’s behavior selection mechanism.The third part focuses on the judge criteria of misconduct.The CSRC must judge sponsor’s conduct during the regulation on sponsor.Based on the provisions of existing system,the judge characterization should be whether sponsor is diligence, honesty and trustworthiness.The legislative experience and judicial precedents in United States provides inspiration to determine the specific behavior.The fourth part makes sugguestions about legal regulation on misconduct,including remodeling the regulatory regime, establishing market reputation mechanism, innovating partnership sponsor institution,and perfecting the civil suit proceedings of compensation. The ending part also points out that legal regulation on sponsor’s misconduct is actually a systematic project,which requires all market entities to participate in this project.The epilogue summarizes the full text,indicating the direction for further research and look into the future of sponsor system in China.