Securities Civil Liability Study

Civil liability means civil liabilities such as compensation for damage etc, which should be beard by the party participates in securities acts and which violates the relevant provisions of laws and regulations of security or the agreements between the parties and causes losses of investors.The prosperity and development of securities market largely depend on maintenance of investors' confidence to securities market, which requires holding back illegal acts and protecting investors' legal rights and interests. Where investors' rights and interests are damaged and can not be relieved through legal proceedings, investors' confidence will not be maintained. It is civil liabilities such as criminal liability and administrative liability. The reason is that only civil liability can compensate for the losses of investors. Deficiency of civil liability in Securities Law of PRC is evident, and judicial practices of civil litigation of security is also at the beginning. The author hopes this article will be helpful to perfecting the system of civil liability of security.This article falls into three chapters. Chapter one outlines civil liability of security. In this chapter, the author introduces the definitions of civil liability of security and four special functions on civil liability of security. The author also discusses the necessity of civil liability of security.In chapter two, the author advocates civil liability of security which includes security for breach of contract, securities liability for tort and securities liability for pre-contract. First, the author introduces contract for securities investment consultancy, securities brokerage contract and securities sale contract, and makes preliminary investigations on doctrine of liability fixation and important constructive conditions etc. Second, the author analyzes and studies civil liability for typical tortuous acts, such as false statement, manipulation of securities market, insider trading and fraud on clients. The author makes some suggestions on how to complete civil liability of security according to existing security market. Finally, on studying American cases and illegal acts in our security market, the author analyzes securities pre-contracted liability and concludes that civil liability of security should consist of securities pre-contracted liability.Moreover, the author gets a research on the fulfillment system of civil liability of security through civil litigation, and makes suggestion that we should introduce class action system from the regulations of USA.In chapter three, the author puts forward some suggestions to complete civil liability of security. First, we should modify Securities Law of PRC. Among chapter of legal liability, supply relevant provisions on civil liability of security. Second, complete other regulations other than Securities Law of PRC. Last, strengthen security supervision and regulate our security market in general.Comparative study method is adopted in this article. Relevant provisions of USA and of Hong Kong are chosen as the objects of comparative study. China should draw on the more experiences of them.