Research On The System Of Investor Suitability In Assets Management Business

With the accelerating pace of financial innovation,the types of asset management products are unprecedentedly rich,and many products are becoming more and more complex in design.Common investors may have obstacles in understanding and therefore investing in them increases unreasonable risks.In view of the large proportion of investors in China's asset management business,which are individual investors,their assets are relatively small,and most investors do not have sufficient experience and judgment ability,and are easily misled by falsely exaggerated information,causing economic loss.Therefore,it is very important to help the public investors in the asset management business from the institutional perspective.The investor suitability system is one of the most important aspects.The China Securities Regulatory Commission issued the "Measures for the Administration of the Proper Suitability of Securities and Futures Investors" on December 12,2016,and the five ministries and commissions of the People's Bank of China jointly issued the "Guidelines on Regulating the Asset Management Business of Financial Institutions(Consultation Draft)" on November 17,2017,although the latter is still in the stage of soliciting opinions,the policy orientation it has shown is already very obvious.The issuance of these two documents marks a milestone progress in China's investor appropriateness system in the asset management business.In the introductory part of this article,the topic of investor suitability system in asset management business is drawn through HongKong Lehman minibond case,and then the basic theories of asset management business and investor adequacy system are elaborated,through investors in asset management business.Analysis of the main contents of the legislative model of appropriateness,the classification system of investors,the obligation of appropriateness,and the damage liability of financial institutions,etc.,discovered the problem of investor suitability system in China's asset management business,and finally put forward suggestions.In terms of the legislative model,the current legislative model of investor suitability in China's asset management business is similar to the self-regulation rule-based model and does not meet the requirements of China's financial market development.In terms of the investor classification system,China's existing regulations do not provide a unified classification of investors,nor do they provide detailed regulations for ordinary investors.In respect of the obligation of due diligence,the exemption clauses for appropriate obligations of financial institutions are missing.Finally,when financial institutions violate the obligation of appropriateness to cause losses to investors,they lack strong legal sanctions against financial institutions.Investors find a single way to seek relief and lawsuits are difficult to defend.Based on the mature experience of appropriate systems in the United States,Japan,Hong Kong and other countries and regions,this paper proposes further improvements and improvements from the following aspects: the establishment of a legislative model that meets the national conditions,the construction of a multi-layered legal system,and the establishment of a unified investment Categorize,refine the conditions of ordinary investors;increase the obligation of exemption from appropriate obligations,exempt some of the financial institutions;strengthen civil remedies for investors and improve dispute resolution mechanisms.