The Legal System Of Supervision Of Sponsor

In the part of the securities issued, Sponsor play the role as the “first gatekeeper”,performances the due diligence and continuous supervision functions. The originalintention to introduced the sponsors is to improve the quality of listed companies, butmore and more sponsors joint with listed company on fraud conspiracy. It damagesthe interests of investors, disrupt the development of securities market. Market partiesquestioned the role of the sponsor, they abhorrence IPO chaos. It is necessary toimprove the legal system of the regulation sponsor, for the purpose of improve thequality of listed companies and protect the interests of investors, also for promotingthe healthy and orderly development of the securities market. Supervision of sponsorinvolves four aspects, the regulatory, the access of sponsor, the sponsor functions, thesponsor’s liability. This paper will writing the above aspects.Specifically, the text consists of seven major components:The first part, an overview of the regulation of sponsor legal system. It startswith a brief introduction of the connotation of sponsor system, then introduce thelegal system of sponsor’s regulation.The second part, analysis the necessity for the regulation of sponsor. Includinganalysis of economics and law and the practical needs.The third part, discusses the problems of the regulatory system on the regulationof sponsor. Inadequate internal controls, SFC separation of duties are really the realproblems need to solve. A solution to the problem is to complete the regulatory system both in external supervision and internal control.The fourth part, expound the rule about the access of sponsor on the SecuritiesLaw. Analyze the problem and put forward a sound proposal.The fifth part, expound the shortage of due recommend functions and continuoussupervision functions, proposal to clarify the function scope of the sponsor and theother intermediaries, complete the continuous supervision of the sponsor.The sixth part, analysis the problem of sponsor’s legal liability system.Recommend to establish a comprehensive legal system of civil, administrative,criminal liability, meanwhile clarify the liability border between sponsor and otherlegal entity.The seventh part, a summarize of this article.