On Civil Liability Of Sponsors For Investors

Our securities market information disclosure violation events frequently occur, reflects the various defects existing in the recommended system in our country, especially the lack of civil liability of the sponsor system of laws and regulations. Sponsors to perfect the civil liability of the investors, is conducive to protect the legal rights and interests of investors and promote the orderly growth of the securities market. Sponsors civil liability refers to from the sponsors to investors in respect of civil obligation, the status, duty and illegal cost are the main reasons of the sponsors who shall bear civil liability.Its property belongs to the tort liability."Wan Fu Sheng Ke financial fraud case", throughly reflects there is a big defect that the sponsors to law of civil liability to investors in China. Meanwhile, securities regulators have no deterrent effect. Perfect the sponsors for investors to civil liability which is worthwhile both for micro and macro level. Sponsors imputation principles of the civil liability to investors appropriate chooses the presumption of fault liability principle, the basic requirements include harmful consequences, illegal sex, causality between harmful consequences and illegal sex, guarantor’s fault. Sponsors of the false statement illegal behaviors including false records, misleading statements or material omissions, and improper disclosure, whether standards of behaviour is illegal is sponsors in violation of the duty diligently. Causality and causal relationship including trading loss on the cause and effect. Sponsors of the fault namely whether the act strictly in accordance with the sponsor specification. Sponsors the civil liability of investors have positive applicable situation and the application of the passive situation. Sponsors for investors to bear is a kind of joint and several liability to pay compensation, the compensation scope mainly due to the false statement is limited in actual loss, our country can use the "first-in first-out" amount calculation for damages. In addition, it is necessary for sponsors and other common infringement responsibility divided subject. Sponsor shall bear civil liability is often difficult to achieve. We can establish sponsors liability insurance system in our country and sponsors professional risk fund and risk prevention mechanism, and group litigation can be introduced to solve the securities civil disputes.