Research On Civil Liability Of Financial Institutions For Breach Of Suitability Obligations

The current legal system in China does not lack the legal source to adjust the suitability disputes between financial institutions and investors,and the legislation also gives investors the independent right to claim damages caused by the violation of the suitability obligations of financial institutions.From the perspective of investor protection,it is not only a matter of system perfection that financial institutions bear civil liability for breach of suitability obligation to provide investors with relief and protection,but more importantly,it is necessary to seek the effective realization of investors' right of claim within the current legal system of our country.Article 88 of the Securities Law stipulates in principle the civil liability of China's financial institutions for breach of appropriate obligation.The Supreme Court's “On some problems in current commercial trial work” and “the national work conference on court in civil and commercial trial” summary to our country involved in disputes over financial institutions in violation of the obligation of appropriateness of justice has an important guiding role,but due to this judicial interpretation issued before the new securities law,they don't go well with the law very much.In judicial practice of the civil liability on the violation of suitability,there also exist some problems such as confusion of law issued,vague criteria of illegal review,abuse of the negligence principle and missing exemption rules.The lack of civil liability law and standard system of rules is important for these problems.Referring to the experience of the system of civil liability of due obligation in the western developed countries,the tort law is adopted by most of the civil law countries in the choice of the path of liability.However,in the developed countries with the financial industry,the development trend of horizontal integrated legislation is gradually increasing,and the unified financial legislation is also increasingly becoming an important basis for investors to assist and relieve financial institutions when they violate the obligation of suitability.In term of institutional rules,countries have slightly different specific provisions.To sum up,the regulation of financial institutions' behavior as the core,imposing strict liability on financial institutions and granting certain exemption arrangement of liability constitute an important rule system of civil liability of due obligation in western developed countries.To solve the problem of the practice of civil liability for the violation of suitability obligation by financial institutions in China,and to clarify the path of the combination of the securities law and the tort liability of the civil code in terms of the application of law,are the premise for the effective realization of investors' right of claim within the current legal system in China.As for the setting of specific liability rules,it is necessary to improve them from three aspects,namely,identification rules,burden allocation rules and exemption rules.After all,in order to balance the benefit allocation of financial market and promote the sound development of financial market,the burden of proof should be skewed to financial institutions and the corresponding exemption rules should be established while the specific identification rules and standards should be clarified.