Administrative Punishment On The Non-diligent Conduct Of Securities Lawyers

With the constantly advancing of the registration-based Initial Public Offering System,the role of intermediaries in the Initial Public Offering is becoming more and more important.Among intermediaries,law firms and lawyers who identify legal risk are obliged to assist companies in disclosing relevant information on history,credit and debts,and connected transactions,etc.However,in recent years,a number of law firms have been subjected to administrative supervision measures in the administrative enforcement activities of China Securities Regulatory Commission such as charging correction and warning letters.And nine law firms and lawyers have been subjected to administrative punishment,because of failing to fulfill its accountability in a diligent manner.Under the existing system,there are some securities lawyers who fail to fulfill its accountability in a diligent manner.The punishment system has not reached its intended purpose,and it also has been questioned by many parties.From a macro perspective,it is due to the backward supervision target and the long-standing passivity and utilitarian of administrative enforcement.From a micro perspective,the administrative punishment on the non-diligent conduct of securities lawyers has deficiencies,including the unclear standard of non-diligent conduct,the low illegal cost of lawyers,poor efficiency of administrative enforcement and the reputation mechanism which not has been full used.In order to better regulate the conduct of securities lawyers and maintain the positive development of the securities market,this paper proposes to further clear the standard of non-diligent conduct,impose stiffer punishments on lawyers,make full use of the lawyers associations and establish dynamic credit evaluation system.