Research On Market Regulation Of Securities Investment Consulting Industry

Viewing from the actual requirement from the rapid expansion of securities investment advisory service,and the comparison with the developed country’s market regulation system,the imperfection of our country’s market regulation system regarding securities investment advisory service mainly manifests as:the coexistence of regulation deficiency and regulation excessiveness.On account of that,this paper,taking the market regulation of securities investment advisory service as a study object,in the view of institutional change,by means of efficient market theory,industrial organizational theory,regulation economics,and so on,discusses our country’s market regulation of securities investment advisory service and its optimized path and strategy.Through the theoretical analysis,first of all,the four factors about securities investment advisory service and market boundary should be clearly defined:subject,objective,form,action.Secondly,the industry value and market value of securities investment advisory service can be concluded.Industry value:it has the function of transition,smoothness and joining towards the whole securities industry;plays an active role in the innovation of whole security and financial industry;leads the upgrading and transformation of securities industry and security firms.Market value:it is beneficial to provide a fair,reasonable and transparent investment environment to investors,and improve the capital market efficiency;contributes to optimize the allocation and resources of securities market and capital market;is beneficial to protect the interest of medium and small investors,and promote the market equity;propel the deepening and developing of value investment ideal of securities market.From system,institutional arrangement,existing legal system and other aspects,the market regulation can be arranged and concluded as three major parts:legal norm of market regulation,law enforcement of market regulation,and relief of market regulation.By means of the institutional change theory,industrial organizational theory,regulation economics and other theory tools,analysis frame of supply and demand regarding market regulation of securities investment advisory service can be constructed:SCP analysis paradigm based market failure and regulation demand analysis frame;institutional change theory based regulation failure and regulation supply analysis frame.The main research conclusions is as follows:the imperfection of securities investment advisory service market,which is a problem of market structure,has directly impact the market behavior,result in the loss of market performance of securities investment advisory service,causing the market failure;the market regulation system of securities investment advisory service is built to remedy the market mechanism deficiency,correct market failure,and eventually achieve the Pareto improvement which is necessary and possible;the mechanism failure is mainly derived from the development and change of regulation system;the influence factors of regulation system change can be read in two angles of static state and dynamic state,therein,the static factors are comprised of market concentration increasing,information incompletion and insufficiency and others which are brought from regulation lag,rent-seeking behavior,administrative monopoly,constraint condition change of regulation supply,non-natural monopoly,natural monopoly;the dynamic factors are comprised of path locking and its negative effect regarding the change of market regulation system of securities investment advisory service;the key to solve market failure and regulation failure is to achieve the dynamic equilibrium between these two failures;that is,the regulation subject and object is respectively under a certain constraint condition,to achieve their objective function maximization in operation and change of market regulation.On the premise that above conclusions are fully absorbed,this paper,based on our country’s development status regarding market regulation of securities investment advisory service,has expounded the problem existed in market regulation of securities investment advisory service.On the current situation,the system which is mainly comprised of market admittance,behavior supervision,information isolation and quiet period system is initially formed.In term of problem,the regulation deficiency mainly manifests as:supervisory system incompletion,regulation structure unreasonable,market-oriented regulation deficiency,regulation basis and accountability system deficiency,information disclosure mechanism and information separating wall system incompletion,etc.regulation excessiveness mainly manifests as:the regulation for market admittance is too strict,the regulation for business scope is too narrow,price regulation is excessive.In the view of market compliance of securities investment advisory service,development and exerting securities investment advisory service functional orientation,the analysis of supply and demand towards market regulation is respectively conducted,whose result shows that our country’s market regulation of securities investment advisory service is a decision behavior processed under a external and internal double restraint condition,and theoretically there is optimal market regulation strength to meet the market performance maximization,that is,with a moderate regulation strength,the object profit maximization of market regulation can be realized.Application market regulation supply and demand model analysis shows the equilibrium of supply and demand regarding market regulation of securities investment advisory service all appear instability,which forms the particularity of institutional change of market regulation system,and objectively requires to change the traditional market regulation system.Considering that our country’s market regulation of securities investment advisory service is a mixture,it not only demands to relax the original rigid regulation,but also to supplement and complete original regulation.Therefore,our country’s optimized path regarding market regulation of securities investment advisory service should combine with the "path dependence" characteristic of institutional change,to solve "market failure","regulation failure" and achieve dynamic equilibrium.For this purpose,this paper has proposed the following optimized path:principally,based on defining regulation subject and object and its responsibility right,government-leading gradual model is adopted to conduct market regulation system and institution reformation,firstly,the system internal principal-agent relation is adjusted,secondly,the joining part between system and market is adjusted,to achieve the purpose of free to increase and decrease,free to collect and release,which is to combine the supervision strengthening and regulation releasing.Meanwhile,the role definition is clearly regulated,the regulation subject is gradually changed from the role of "referee" with "athlete" to a pure "referee";the negative list of market admittance is built,the market regulation system is gradually completed:information separating wall reconstruction,regulation system disclosure,investor protection mechanism construction and so on;the industry supervision strengthening and administrative control releasing are simultaneously carried out;market compliance of securities investment advisory service and regulation in development dimension can be optimized to solve "market failure","regulation failure",and realize the definition equilibrium;the reconstruction is beneficial to the legal system of market supervision regarding securities investment advisory service.Combined with the international comparative analysis,the problems are revealed such as our country’s market incompletion of securities investment advisory service,information insufficiency and incompletion,high transaction cost,investors rationality deficiency,investors utility function heterogeneous,etc.,and this paper has proposed the following countermeasure and policy suggestion:first,the regulation optimizing strategy in functional dimension of securities investment advisory service,which includes the completion of investment advisory information disclosure mechanism,investor protection mechanism construction,the optimal supervision strategy of securities investment advisory service---strengthen supervision,release regulation.Second,market compliance of securities investment advisory service and regulation optimizing strategy in development dimension can be mainly applied in the following three aspects:market admittance and exit mechanism is adjusted;innovative service model design,standard procedure and compliance management;construction and compliance of information disclosure and separating wall system;the legal investment advisory agencies are released from service restriction,service innovation is encouraged.Third,the legal system of securities investment advisory service is reconstructed,which includes the more professional law is enacted to regulate securities investment advisory service;the related normative documents are integrated,to form a high-rank laws and regulations;connotation and extension of securities investment advisory service is defined legally.The innovations of this paper are presented as the following highlights.(1)Our country’s regulation system of securities investment advisory service and its optimization is studied in the view of the combination of institutional change and market regulation;(2)The industrial economics,regulate theory,and institutional change theory are combined to study the demand and supply of market regulation.And by taking our country’s regulation system of securities investment advisory service as the research content,such market regulation were further defined as the integrated norm for controlling and restricting all main economic behaviours,covering not only market operation mechanism and related rules,but also governmental regulation.(3)By paying more attention to the relationship between regulatory system and market mechanism,it deeply investigated by introducing several market factors in analyzing and optimizing the above regulations.And based on how to form optimized strategies around market regulation system,this paper proposed the idea to put more eyes on legal promotion while enhancing legal supervision upon the securities investment advisory service with combination of the above two ways.Furthermore,it also encouraged the securities investment advisory service to have more financial innovations,rendering "blocking but also dredging simultaneously".Besides of learning from relevant foreign legislative experience,it elucidated the significance of putting more eyes on path dependence problems in institutional change.Based on this staged actuality of our country’s securities investment advisory service,the concrete issue should be analyzed concretely.