Research On The Investor Suitability Rules In Securities Industry

The booming securities market makes the trend of innovation, complication and specialization of securities trading products continue to strengthen,which brings two unstable factors:one is the investors when participates in the transaction increasingly dependent on recommendation of the security dealers;the other is the investors and securities dealers hold imbalance forces due to the ability to obtain market information, especially medium and small investors in a weak position. Therefore, in order to balance the power of the two sides and protect interest of investors, “Investor Suitability”has become an indispensable important rules in the field of the securities industry, and thus the formation of appropriate institution for investors.In addition to the introduction, this paper is divided into four parts:In the introduction, it takes “Morgan Stanley UK Group v. Puglisi case” and “Ms Lin v. Standard Chartered Bank case”as examples to bring out the problem of this paper, and then summarizes the present research status of securities investor suitability in China, puts forward the research contents, research methods and innovation of this article.The first part mainly studies the theoty of the securities investor suitability rule. The author try to define the securities investor suitability rule in this part.From the rights and regulations, the authorities and responsibilities of the tripartite parties of investors,operators and regulators to a start, improve the system of the rights and obligations under the investor suitability rule.The second part studies the current situation of securities investors suitability rule in China. To sort out from the aspects of laws and regulations and the content and inspect from the practice situation, it will find existing phenomena and problem of suitability rule in legislation and practice. This part will lay the foundation of the later part because it puts forward the suggestions of perfecting our country’s investor suitability system.The third part takes a comparative analysis of extraterritorial investors in the securities industry rules from the aspects of the legislative model, the applicable object, the appropriate obligation, the legal responsibility, and the relief channel, and then sums up inspiration for our country.The forth part puts forward ideas for the improvement of the system of securities investor suitability rule First, The author will build a overall framework of investors suitability rule from the dimensions of rights and regulations,responsibilities and reliefs to a start. Second, it will enrich investor suitability rule from the classification of investors and products, rights and regulations of investors and operators, and regulatory rules. Finally, taking the appropriate restrictions for the rights of investors and the appropriate exemptions for the obligations of operators as two complements, improves the system design of investor suitability rule.The epilogue part presents by the opportunity of modifying the "Securities Act" to establish the status of securities investors appropriate institution, and points out that we still need to deal with several aspects of relationships when we are improving the securities investors appropriate institution.