Research On The Securities Investor Suitability System

The securities market is one of the financial market that more active in recent years, investors as an important part of financial markets, because of its insufficient investment knowledge and experience, compared with the financial service provider in the weak position, led to the majority of investors, especially small and medium investor reliance on financial service provider. So in order to protect the interests of investors, securities investors suitability system arises at the historic moment. The system require financial service provider, after investigating the investors understand then suitable financial products or services sold to investors.The system can be said to be an optimal investment behavior which to guide the rational investment system.Investors suitability system mainly constrained financial service provider which has a dominant position in the securities market’s main body, it requires that the financial services provider must follow the diligent obligations and duty of loyalty to recommend financial products or services to investors, to proceed from the interests of investors. In the investment behavior of a specific investor shall not harm the interests of other investors, and at the same time its own interests shall not be above the interests of investors.Investors suitability system are widely used in foreign mature capital market, is a basic system in the financial markets. The system in China started late, in the capital markets was involved in various fields, but has not form a unified legal norms of the capital market, mainly due to the effectiveness of the system level is low and its main content is not perfect, did not cause enough attention to financial services provider, not really the role of investor protection. Due to the lack of the relevant provisions of the civil compensation of investors, eventually leading to the current situation that after the failure of investors nowhere for help. So after the understanding of foreign countries to the development of the system can be found that the improvement of the system is imperative, should from the perspective of protection of investors, the system should stipulate in the country’s basic law, to clear classification of investors, clear financial services provider in violation of the system shall bear civil liability, provide investors with diversified relief way. Due to the dominance of financial service providers, should adopt the principle of presumption of fault liability for financial service providers in the dispute, and implements the inversion of burden of proof, in order to reduce the burden of proof is difficult for investors. At the same time, cannot ignore regulators in the important role of appropriateness obligation. In addition, be helpful for suitability compulsory implementation of supporting system such as system of investor protection insurance registration system, investors and investor education also need to get the corresponding perfect.