The Study Of Regulation Of Suitability System Of Security Investors On Specific Subjects And Transaction Behabior

To protect investors,most capital markets have rules on the information disclosure system and fraud clause,but to protect investors in the process of transactions is equally important.As an important system for protection of investors,suitability system is to allow investors to trade securities matching their ability of risk-bearing.We have adopted this system for ten years,but both theoretical research and legislative practice remains to be perfect.To balance between emptor and the principle of seller's responsibility is an important subject of capital market.According to the scope of a system,how much the investors are protected in scope is decided.So to study on the applicable scope is a basic work for perfection of a system.In this paper,the text is divided into five parts.The first chapter analyzes the present situation of the appropriate institutional investors in China from two aspects,including legislative practice and theoretical study.The second chapter discusses the institutional investors.Now whether institutional investors should apply suitability system is in discussion.Institutional investors should be classified again,and provide different levels of protection for different types of investors.The third chapter discusses the brokerage business.When execution investors' trading instructions the securities company should assume suitability obligation.But after all,execution instructions and recommendation is different,the securities company only have the duty of prompt.The fourth chapter discusses excessive trading.In the practice securities companies and fund management companies avoid he existingregulations through a variety of ways.So securities brokerage business and tunneling and propping between securities companies and fund management companies should be further standardized.The fifth chapter put forward legislative proposals on the basis of the existing regulations system according to the discussion above.