A Study On The Investor Suitability System Under The Revision Of The Securities Law

Investor suitability system originated in the USA, Its core is “Distribute appropriate financial products to the right investors“,which is an investor protection legal system in the process of world’s capital markets innovation and development.Now,the suitability doctrine has been generally accepted by developed capital markets,such as EU, Japan,Singapore,and so on.and it has proved to be an effective mean to protect the investors,who is in a weak position in the securities trading.In recent years, we have made some suitability rules in the fields of Chi Next, margin trading business, stock index futures and others,bue due to the lack of unified provisions of law,our rule system shows the features of decentralization and disorder.In addition,it also some other problems, for example, the basic positioning is not right 、the contents are not perfect and so on. Now,the revision of the "Securities Law" is ongoing,under the guidanceof the concept "deregulation and encourage innovation", The implementation of registration system, expanding the range of securities products and the construction of multi-level stock market is expected toappear in the new securities law.Innovation is also accompanied by increased investor transaction risk. The author suggests that, we should improve the legislative level of suitability rules, establish an unified suitability rules system in the "Securities Law”,which is consistent with the basic value of protecting the investor’ rights.Specifically, In this paper, on the basis of defining the concept and nature of the investor suitability system, we may start from the establishment of investors classification system and financial products classification system, and then clarify suitability obligations of securities companies, such as know your customer, know your product or service, obligations of information and risk disclosure and obligations of best execution. At the same time.Through the clear civil liability of the securities civil,who has violated the rules and the construction of the diversified dispute settlement as a protection mechanism,to promote the perfection of the investor suitability system.