Study On The Suitability Doctrine In Financial Instrument Trading Contracts

In financial instrument trading,people face unpredictable risks in the shifts of future cash flows.Due to its high professionalism and complexity,the risks of trading financial commodities are incomprehensible to common investors.However,common investors inevitably need to rely on professional investors to make financial choices based on provided information.On the other hand,the reform of the financial market gradually relaxes supervision efforts,which brings the acceleration of financial instrument development and economic globalization,the maturity of economic structure,the occurrence of the aging society and other increasingly fierce socioeconomic tendencies.Given considerations to the demands of diversified and increased assets using in the financial market,there is not only a need to develop new products,but also increasing expectations over widely absorbing and developing common investors.However,a myriad of problems spring up as financial instruments develop and the financial market constantly expand.The increase of individual investors that are not expert in investing trading and the financial technological revolution that accompanies the Internet development make instruments more complex and risky.In this context,the importance of protecting investors is increasingly enhanced.Moreover,the Suitability Doctrine is an important exploration practice,which sets up its important status among various investors protection systems in different countries.Along with financial innovations,the Investors Suitability Doctrine system implemented in financial instrument trading develops and has been absorbed by different countries.In recent years,the pace of innovating and reforming Chinese capital market is accelerated and the financial instrument trading becomes increasingly prosperous.In this context,the practical demand for introducing and developing Investors Suitability Doctrine system to protect common investors' interests and benefits becomes increasingly prominent.At present,Chinese theoretical research on the Investors Suitability Doctrine system is still weak,and the construction of legal system is incomplete.The contents about the Investors Suitability Doctrine are mainly represented in relevant departmental regulations and self-discipline regulations.Moreover,China hasn't offered a clear legal definition for the civil liability that shall be undertaken by financial institutions that violate their suitability obligation.In practices,investors' civil relief right can hardly be guaranteed or realized.Based on deepening theoretical research and analyzing foreign experience,the thesis combines the case presentation analysis to explore and perfect the practicability and necessity of applying the Suitability Doctrine of Chinese financial instrument trading to civil remedy.Text of this paper is divided into four chapters.The first chapter of the thesis conducts basic research and introduces the practical evolution.Chapter II introduces the status quo of developing the Suitability Doctrine in China.Chapter III includes the study of the comparative laws.The last chapter includes case analysis and experience conclusion.