Research On The Institutional Problem Of Investor Appropriateness In China

The most direct generalization to the Investor Eligibility System is operating agencies,including institutions keeping licenses,such as Securities,Funds,Trust Funds,Banks,Private Funds and so on,sell their products to targeted customers.From the perspectives of developed marketing nations,such as USA,European United and Japan,the Investor Eligibility System has become a general institution in capital market.It has been widely used in administrative supervision and judicial practice.Until now,the Investor Eligibility System in China are still in rank of Regulations or Governmental Approaches instead of Laws.It is totally different between China and other countries mentioned above in ownership system,yet,it is the same in aspects of the support of substantial economy by finance,the precaution of systematic risk and the maintain of investors' confidence.When researching an institution,we can only post a promising plan after finding effective theories as well as integrating current situations and problems.The Investor Eligibility System,as an applied subject,we should consider integrated elements and obstacles,including national economy,regulatory requirements and investors,otherwise,the research conclusion and proposal will never enforce due to the difficult practice.In recent years,the research about the Investor Eligibility System actually developed.However,in general,there are some problems exist,such as the scarcity of basic theory,oriental false,range bias and vague logic etc.To address these troubles,we should do as follows:Make sure that fiduciary duty is the theoretical foundation of the Investor Eligibility System.Fiduciary duty is the upgraded version of great faith principle.In the Investor Eligibility System field,it requires more than great faith principle for substantial economy.In details,not only does it require due diligence and careful management,but also require proactively identifying,positive disclosure and active guidance.The fiduciary duty demands more in finance than in business.Definite contractual principle.The Investor Eligibility System is not only manipulative.It lies in contractual relationship which illustrates the equality of investors in strict responsibility.It is beneficial that supervisors,as a “night watcher”,should punish defaults,interrupt negatively and manage passively.Make unified standard clear.The range of the Investor Eligibility ought to extend to all aspects related to the purchase of service,proposal and financial products rather than specific fields,such as Securities,Funds and Banks.It is to emphasize that the standard among similar products also should be the same even if they belong to differentiated supervisors.Differentiate the access between the Investor Eligibility System and investors.The items of the Investors Eligibility System in Growth Enterprise Market,Margin and Stock Index Futures would better reorient.The trading products mentioned before is comparatively fixed.The trades depend on investors.The access system does not have “Trust Funds or Products” properties.I,assume that similar Investor Eligibility System is actually the access of investors.Therefore,the institutions should be revised logically.From the view of applying into practice,the fundamental goal of Investor Eligibility System,as a financial law,is perfectly to rebuild financial faith system,serving for substantial economy better via financial tools.At the same time,this aim is meaningful that we are able to reconsider and structure the current Investor Eligibility System.