Legal Problems Of The Securities Company's Risk Control

The securities companies in our country have made remarkable achievements after 20 years development. At present, in the background of international financial risk, securities companies are facing new competition pattern and more sophisticated risk regulatory issues. As an important participating subject of the securities market, securities companies'risk monitoring level has important relationship with the development of the securities markets and national financial security. So, the major issue we are faced with is improving the international competitiveness of brokers and seeking the dynamic balance on brokers risk monitoring.In the first part of the paper, the theories on risk-monitoring of securities companies are overviewed. Firstly, it states the concepts of securities companies' risk-monitoring, reviews its main research theory and the research system and then expounds the significance of risk-monitoring of securities companies. Secondly, it sets forth the view that law plays a key role in monitoring securities company's risks and points out two legal approaches-internal control and external supervision, by which we can supervise the risks of securities companies monitor.The second part analyzes the risks legal cause of securities companies. The risks brokers may face could be differentiated from three angles. Firstly, the risks may be caused by the reasons of system or besides of the system. The second, risks may happen during the process of access-sustainable business-exit. Finally, risks may belong to business field or the other field besides of business and this one will be focused. Besides, the legal relations between traditional business and new business, risks of law and the cause are analyzed in this part and the corresponding suggestions will be set forth as well.The third section describes the situation of broker's risk-monitoring at first, proposed the risks faced by brokers include system risk from internationalization, new risk caused by innovative business, the risk of market-access which has not got enough attention, potential risks from broker's collectivization development. And then make an empirical analysis on internal control status and external supervision status; points out the problems consist in securities companies risk-monitoring.The fourth part discusses how to improve the legal system of broker's risk-monitoring. First, in view of existing problems, we must regard the legal system of broker's risk-monitoring as a whole with a systematic view and perfect the brokers risk monitoring from the aspects of risk monitoring target, risk monitoring structure and mechanism, brokers internal control system, external supervision system, and so on. Secondly, we must strengthen the guide, standardized and disciplinary function of the legal risk monitoring of broker from the aspects of legislation, law-abiding, law enforcement and judicial. Finally, we return to the tenet of risk-monitoring of securities companies. That is, we must seek a dynamic balance on risk monitoring which is in accord with the market discipline and national strategic needs.The paper's innovation points embodies in the following aspects. First, the discussions on legal monitoring risks of securities companies bases on the combination of internal control and external supervision. Secondly, puts forward business risk monitoring is the foundation and system risk monitoring is the key based on the analysis on the risks of traditional business and innovative business from the legal relationship. As result, we should structure an effective legal supervising and control system of broker risk from many aspects such as capital flows supervision, business linkage supervision, and financial conglomerate monitoring and so on. At the same time raises law-abiding and law-enforcement efficiency through systematic and forward looking legislation. Improve the international competitiveness of brokers, leading brokers bigger and stronger, establish the risk monitoring of domestic and foreign cooperation mechanism to prevent and avoid risk more effectively.The risks of securities companies monitoring is a continuous topic, based on a system research structure, and intensive study in practice is still needed in the further.