Research On The Perfecting Of Investor Appropriateness System In New Third Market

The system of investor appropriateness originated in the United States.Since the initial attempt of the GEM market,corresponding regulations of the investor appropriateness system in the field of stock index futures,fund sales,margin financing,asset management,pledge type repurchase,small and medium private debt and the new third market(the National Equities Exchange and Quotations)have been gradually carried out.After the official operation of the new third market in 2013,the company issued the "Rules for the proper management of investors in the share transfer system of small and medium-sized enterprises nationwide(Trial Implementation)" which is used to regulate the participation of securities dealers and investors in the market as a direct rule.High threshold,lack of liquidity and inactivity of trading are the prominent problems in the new third market.These problems caused the author to think and study the problems and shortcomings existing in the current system of investor appropriateness in the new third market.As an example of the "one size fits all”admittance standard stipulated by the investors appropriateness system,many potential investors are excluded from the market and unable to enter the market to participate in the transaction,however many investors who enter the market may not really have the professional ability,risk understanding and affordability that are in line with the market.Some scholars have realized that the design and application of investor appropriateness system in new third market is not only to protect the interests of investors,but also to form more restrictions on the participants and to make more restrictions on active trading and active market.In June 28,2017,the company issued a bulletin on the revision of the rules for the management of the appropriateness of investors in new third market,and revised the contents of the trial rules formulated in 2013.Comparing the contents of the modification,the author realizes that the existing problems of the new three board investor’s appropriateness system still have not been solved,which deviate from the purpose of discriminating protection between the investor’s appropriateness and different investors,especially in the aspects of the investor access conditions,the classification system and the classification and classification of the products,still have perfect need and space.This article,starting from the current regulations and existing problems of the investors appropriateness system in new third market,and then demonstrates the necessity of perfecting the system.By comparing the modification of the "Rules for the proper management of investors in the share transfer system of small and medium-sized enterprises nationwide",the key issues are redefined and the advanced foreign practice to the same kind of problems are introduced.At the same time,in order to protect the interests of investors,the suggestions of how to perfect the investor appropriateness system in new third market are put forward around the classification of investors,classification of products,clearing legal responsibility,and other supporting systems.