Distribution Of Civil Liability Of Securities Intermediaries In Cases Of False Statement

Chinese laws stipulate that securities intermediaries are jointly and severally liable for false statements,but there are no uniform provisions in Chinese securities laws and regulations on how to further distribute civil liability for false statements among numerous securities intermediaries,and there are no cases to refer to.In several tort cases,joint and several liability is mainly measured by two factors: fault and strength of causative potency.The judgment of the fault and the strength of causative potency of the securities intermediary should start with the behavior of misrepresentation.The objective standard is adopted to determine the fault level of securities intermediaries.The accounting firms and the law firms shall bear the duty of care of professionals for matters within their respective professional scope.The average professional level of members in their respective areas shall be taken as the standard.They shall only be the duty of care of ordinary people for matters outside their professional fields.Before and after the issuance and listing of the securities,the sponsor undertakes the duty of care of professionals.The scope of the duty of care is wide,and its misrepresentation should be condemned to a higher degree.Since the behaviors of sponsors,accounting firms and law firms in false statements are the direct causes of losses of investors,it is necessary to further analyze the role of the behaviors of securities intermediaries in the damage if the strength of causative potency of securities intermediaries is judged.The judgment of the strength of causative potency of the securities intermediary can consider the nature of the behavior,the importance of the behavior and the strength of the behavior to the damage.Sponsors play a leading role in securities intermediaries,which is the main reason for losses of investors.Although it has become a consensus to consider fault and the strength of causative potency in liability distribution,the academic circles in China have not reached a consensus on the primary and secondary status of fault and causative potency.It is difficult to realize the distribution justice because of the defects of the distribution mode which is mainly based on the strength of causative potency supplemented by the fault & allocation mode which is mainly based on the fault supplemented by the strength of causative potency.The best mode of civil liability apportionment is to comprehensively consider the strength of fault and causative potency.Due to the large scope of the sponsor's duty of care,the high standard of performance,and the role of "leader" in the securities intermediary,the sponsor should assume a higher share of the final responsibility.