A Study On Improving The Investors Suitability Legal System Of Chinese New Third Board

Investors suitability legal system since its birth in order to protect the interests of public investors played a key role which requires financial services institutions to provide products and services to investors and asset situation, adapted to the conditions of professional experiences. The theory comes from U.S. which emphasis on the huge gap between public investors and specialized financial institutions Asymmetric Information and analytical skills, so that financial institutions should be borne by fiduciary duties and obligations arising from this self-restraint and gradually transformed into a legal obligation, and thus the capital markets in major developed countries to become that contains three elements of know your customers, the customer-the subject of matching and risk prompts of the legal system. At present Chinese New Third Board has initially established the investors suitability legal system, but there are still some problems compared with the investors suitability legal system of overseas developed capital markets, including the misunderstanding of the connotation of the investors suitability system, grasp the characteristics of the system there is a deviation, resulting in a lack of integrity and continuity of system operation mechanism; Regulatory system structure is irrational, there is no special department regulations and normative documents supporting the self-discipline to guide relevant work undertaken; Investor access and classification standards are not strict; The adequacy of the provisions of rules mere formality, and for the upcoming start of the reform were not enough to respond to the hierarchical, with content lag; Violation of the requirements of the system generate the lack of legal liability, which shows the suitability of the system does not fully play its effectiveness in regulating financial services and protecting the interests of investors.Therefore, this paper will be based on the investors suitability legal system of Chinese New Third Board positioned on recommendations to enhance the structure of the suitability legal documents, under the premise of correct target, the Commission issued the corresponding special regulations, while the NEEQ as a self-regulatory body should develop more detailed operational guidelines for suitability; Secondly modifications Market Reform layered content suitability regime, in accordance with Investors constitute the three major elements to establish a comprehensive connotation suitability of procedures, in order to establish continuity, differentiated suitability system; Finally, by amending the suitability legislation or regulations to allow financial institutions to undertake suitability obligations, improve violation of Investors and bear the suitability legal liability provisions, while increasing non-litigation relief ways for investors to advocate suitability civil compensation to provide more convenient legal conditions.