Legal Research Of Suitability Rules In Our Securities Exchange Market

The scope of suitability rules itself is not clear, and the realityof suitability rules in our country has deepen the problem,for theexisting rules scattered in various parts of sectoral norms, so thatit is not easy to define this range. Attending to that the “InterimMeasures” of shanghai stock exchanging and the “Guide” of securitiesassociation were not exhaustive of the scope of the appropriate rules.Then what situation despite not being listed, but still should be applied,what circumstances should be excluded from the Scope of the rules?Inanswering this question, in my opinion that the risks and the trust ofthe investors should be the criterion.The relative parties of the suitability rules includinginvestors,security companies and security supervisor. Concerning thebirth of this rule and its continuous improvement, investors shall alwaysbe protected. This article is focuse on addressing improperty in relationto the security company as the obligator of suitability rules, combiningthe theories of natural connection, advantage damage, and legalrelationship. In my view, it is suggested that security companies bearthe obligation of suitability rules on the grounds of its profession which is able to gain profits, instead of public service. The moreprofessional the investors believe in the security companies, the heaviertrust from investors the security companies will bear,and the greaterprofit it may get. The possibility of increasing the profitability isdirectly proportional to the highest standard of obligation ofappropriaty. For the purpose of profit, security companies will try theirbest to promote their profession, which reflecting its obligation ofapproprity.At present,in the securities market of our country, the content ofsuitability rules in includes access conditions, investorsclassification system, the rights and obligations of the securities ofthe company, the rights and obligations of investors as well assafeguards.Analyzing that in our country, the set of access conditionshave its practical necessity, but the nature of access conditions withthe appropriate rules are also inconsistent facts. In my opinions, thatthe appropriate rules should be incorporated into the financialmanagement of the relevant laws and the access rules should beincorporated in it too, but should be incorporated outside of theappropriate rules. Namely the development of a unified financialmanagement law is the ultimate solution to this problem, but also themost effective means. Also, the author pointed out that in setting theappropriate rules,the balance of interests should be a consistentphilosophy.As to deal with the relationship between the appropriate rulesand the rules of caveat emptor, improve the protection of investors.Taking into account the securities company to give them positiveincentives. The existing rules on safeguards provisions have some problemon the choose of the security people, the Securities regulators shouldplay a bigger role.To complete the existing suitability rules,explored from the legislative and practical aspects should be suitable. Based on thefollowing considerations, I thought that the establishment of civilliability of the appropriate rules is not suitable: First, the securitiesfraud rules have already provides for the corresponding civil liability,if a securities company violates the suitability rules have reachedthe obligation of the securities fraud rules, the securities fraud rulesshould be directly applied;Second, the establishment of the suitabilityrules in our country is still in the exploration, a lack of clearguidelines can be a heavy burden to the securities company;Third, comparewith the establishment of civil liability,improve the existing regulatorymeasures should be much more easier.On practical aspect, the processof the investors to know risks in our stock market, would result in suchan embarrassing situation in which investors do not actually understandthe risks of financial products or services, but have leave an irrefutableevidence to securities companies that they have already known the risks.So that we should Avoid the absolute effect of signing.To unified theRisk disclosure letter or leave the other evidence in the marketingprocess or ways of special declaration and flexible judgment should beconsidered.