Comment On The Case Of Securities Brokerage Contract Disputes Between CITIC Securities And ChongQing Huaneng Powder Company

Under the condition of market economy, any investment has risks, especially the risk of securities investment.In the securities market,the conflict of interest between the parties are inevitable.It's No ground for blame for investors to bear the market risk of securities trading, but bear the man-made risks lead to fraud or other illegal act is unacceptable.However, the stock market has certain defect itself,The existence of misappropriation of clients' transaction settlement funds will be not at all surprising.In practice,both parties of the case has quiet different view to the ownership of the margin,reason for los s,degeree of fault,principle of imputation and Responsibility.in this case,Huaneng company account in CITIC Securities and Deposit 10 million yuan to buy treasury bonds,then take away 366750 yuan and 1411298.34 yuan in turn,left 94653.05 yuan in account.Ac cordingly,Huaneng company filed a lawsuit to require CITIC Securities to bear the loss.T he focus of controversy in this case are Determination of the legal relationship between the Huaneng company and CITIC Securities,reason of Huaneng company account fun ds lose and the civil liability of the securities company employee misappropriation of clients' funds.according to several controversial focas and with the combination of the facts that court found,T he Supreme People's court considered Huaneng company let Luo Jingsong's illegal transaction,based on the principle of fault and responsibility fairly,Huaneng company should bear the responsibility for the partial loss.CITIC Securities should also be responsible for the loss due their own staff l ong-term loss in the supervision and management.For the loopholes in the systerm of CITIC Securities' s internal controls,provide an opportunity for Luo Jingsong to misappropriate the account funds of Huaneng company,CITIC securities shall be liable for compensation of t he partial loss of Huaneng company.Thus it can be seen,the determination of fault and the calculation of the losses, requires a combination of securities brokerage business process analysis in an all-round way in the disputes caused by securities brokerage business.According to the risks and benefits of consistent standards,and with the basic principles of fault principle of responsibility configuration for the parties concerned,can we make this kind of cases to achieve the effect of fair and just.