Research On The Investor Suitability System On The Stock Index Futures Market

Unlike the traditional stock spot market,the stock index futures market uses margin,two-way trade,maturity date and other special trading mechanism.Investors with limited professional qualifications are more likely to rely on futures companies for investment advice.Therefore,in order to regulate the referral behavior of futures companies,Inventor Suitability System becomes the proper meaning of the development of stock index futures market.The system comes from the proxy legal relationship between investors and intermediaries,and then the theory of special circumstances and the theory of signboards have provided the legal basis.In contrast to the system of qualified inventors,the scope of Inventors Suitability System is broader,including not only the appropriateness standard of stock index futures market access,but also professional-based investor classification,risk-centered product classification,the suitability obligation of futures companies,market supervision and other system content.CSRC(China Securities Regulatory Commission),CFFEX(China Financial Futures Exchange)and CFA(China Futures Association),on the occasion of the launch of stock index futures,have formulated a series of normative documents and established the investor suitability system of stock index futures,and recently ushered in the new progress,the Securities and Futures Commission introduced the"Approach for the Administration of the Securities and Futures Investors Suitability",but the approach only to make some general provisions,there are still some shortcomings when specific to the field of stock index futures:At the macro level,the administrative supervision becomes the main purpose of the Investor Suitability System of stock index futures,and gradually blurred the system positioning of investors protection;normative documents are mainly concentrated in the department regulations and self-regulatory level,and the low effectiveness results in the inadequacy of protection to investors.At the micro level,first of all,the criteria for classification of investors varies from each other.Although the classification of the "Administrative Measures" of the Securities and Futures Commission has broadened the protection scope of ordinary investors to a certain extent,it cannot reflect the difference between individual investors and institutional investors among the same type of investors.Secondly,the provisions about Suitability obligation in the Investor Suitability System of stock index futures is unclear,resulting in that the implementation of the suitability obligations of the futures companies in practice is problematic.For example,the assessment of investor appropriateness is a mere formality,and the risk disclosure becomes a shield for futures companies to evade responsibility and inappropriate ways to promote futures companies.Finally,the futures companies disobeyed the suitability obligations are lack of civil liability,no more than receive the administrative punishment come from the regulatory authorities and the punishment is too light.At the meanwhile,for investors,relief ways are single,litigation is difficult and costly.The Investor Suitability System of stock index futures should take the interests of investors as the starting point to ensure investors opportunities for fair trading and not to restrict the part of the investors to access standards,but through the appropriateness assessment to actively guide more investors to participate Stock Index Futures Trading.In the future modification process,the Securities Law of China should make the principle provisions to the Investors Suitability System.At the present stage,under the-guiding ideology of the "Approach of Administration" of the Securities and Futures Commission,the Investor Suitability System of stock index futures should be directed against the particularity of stock index futures market.Based on the development practice and mature experience of overseas Suitability System such as the United States,European Union,Japan and Hong Kong,further improvement and perfection are made in the following aspects:Refine division of stock index futures investors and be based on the actual situation of stock index futures market,especially the classification of individual investors protection;from the understanding of investors,the assessment of adequacy,the risk disclosure of stock index futures,appropriate sales and promotion four aspects to strengthen the suitability obligations of the futures companies;investigate the legal liability of the futures company for breaching the suitability obligations by increasing the intensity of the punishment come from the regulatory authorities,clearing civil damages and other different measures.In order to reduce the burden of litigation,you can reverse the burden of proof to improve the proceedings of the suitability disputation,and give full play to mediation,arbitration,and other diversified investor relief mechanisms.