Research On The Improvement Of Civil Liability For Misrepresentation Of Securities Intermediaries

The Securities Law of the People’s Republic of China request that intermediaries who are fault for securities misrepresentation shall be take on joint liability.However,intermediaries who are in the securities only act as the auxiliary of information disclosure.If they do not subjectively have a common intention to liaise with the client,it is too strict to be considered as joint liability,which will lead to disrupt incentive to the long-term development of China’s securities market.Starting from the case "WuYang" coming into effect,a new form named "proportional and joint liability" apply in judicial practice.The court hope to explore a new solution in liability to unity of responsibility and fault.Such judgments which have their legitimate merits,however their drawbacks will tend to make securities infringement cases fall into dilemma.If the court want to balance the responsibility of intermediaries and the protection of investors’ interests,the law need to limit the scope of joint liability.In this regard,China can refer to the experience of foreign law and introduce a proportional liability.If they are general negligence or minor negligence,proportional liability is suitable for them.This is a prudent way to design the liability of intermediaries so as improve the civil liability compensation system of intermediaries in the securities market.But proportional liability will increase the risk that investors cannot be compensated.So it is necessary to refine and implement investment service center to hold shares to exercise the right,and ensure special representative litigation or other systems to improve the civil liability in the securities market.