The Juristic Construction Of Information Isolation Mechanism Between Securities Company And Direct Investment Subsidiaries

Securities companies to carry out direct investment business, there is an unfair transmission of information in the form of improper information delivery risk.In China, The securities company to carry out the direct business must take the establishment of direct investment subsidiary mode based on <Provisions on the trial implementation of the subsidiary companies of the securities companies>issued by the Commission in 2008.So this risk is mainly reflected in three aspects: involved direct investment subsidiary and the securities company internal departments:One is in direct investment subsidiary of the direct investment business and securities company’s proprietary business,The second is between the the direct investment business and securities company’s investment banking department, and the third is between the direct investment business and the securities company research department.With the continuous development of China’s securities market, especially the direct investment business of securities companies,PE the problem of corruption, such as "direct + sponsor" mode, also occurs frequently. A new requirement for improving the information isolation mechanism is proposed.Overview the relevant system’s present situation of construction, which is the isolation mechanism of information between Chinese securities companies and direct investment subsidiary, It is not difficult to find thatthe construction of the relevant system is in an early stage of development, not perfect. Its main performance lies in the information isolation mechanism which use the internal regulations of the securities company and the self-discipline of the industry association as main body,and at the same time laws and regulations level Just make the principle of requirements rather than the rules of the specific norms. So direct source of binding is that the securities companies and direct investment subsidiary of the self-discipline and moral consciousness.But this kind of constraint mechanism, which is according to self discipline consciousness and moral consciousness, conflicts with company’s profit driven as the market main body obviously. Therefore, it is necessary to repair the existing information isolation mechanism, to make a construction of information isolation mechanism from the perspective of legal norms in the narrow sense, to make clear the legal attribute of information isolation mechanism between securities company and direct investment subsidiaries. And finally to establish a new mechanism of information isolation, which is led by the rule of law, and is supplemented by self discipline and moral restriction.