A Study On Citic Securities Proprietary Business Compliance Risks Based On Behavioral Finance

Securities companies has played a pivotal job in the allocation of resources and financial intermediation.There are 126 securities companies has been set up by 2016,while their scales are also expanding.With the innovation and development of securities proprietary business investment variety,various kinds of illegal transactions are emerging one after another.How to manage compliance risk of proprietary business has been highlighted increasingly.It's a study on bounded rationality and compliance investment of managers based on risk management theory and behavioral finance theory.At first,we try to find out issues of compliance management in the securities company by studying the authorization status quo and monitor status quo of compliance risk management.We also has studied the board of directors' structure in securities companies.We found that there are so many problems such as incomplete compliance management system,inadequate disclosure of information,vacancy of supervisors and unsound structure of directors in securities companies.Secondly,we study CITICS based on the theory of overconfidence as a case.We study the managers of CITICS to judge whether they exist overconfidence,which may impact investment decision of proprietary and compliance risk.Finally,we put forward relevant suggestions in the aspects of corporate governance and managers to weaken managers' overconfidence psychological,as also reduce investment irregularities because of managers' overconfidence.We suggest the securities company to establish complete compliance management system,adequate disclosure of information and sound structure of directors in the aspects of corporate governance.We put forward to improve the authority of the independent directors and set the permissions of managers' investment.We also suggest to separate the power of director and CEO.