Distribution Of Civil Liability For Misrepresentation Of Securities Intermediaries

In recent years,with the implementation of the comprehensive registration system in the securities market,the role of intermediary institutions as gatekeepers has been continuously strengthened,and the accountability mechanism for false statements by intermediary institutions in the securities market has changed.After the cancellation of the pre procedure for securities false statement disputes,the number of cases that require courts to handle independently is increasing.In this context,in order to reasonably allocate the civil liability that intermediary agencies should bear for implementing false statements,the court must improve its ability to independently investigate the facts of the case,and be able to scientifically determine the responsibilities and faults of intermediary agencies when sorting out the case.Intermediaries play a role in verifying information and urging issuers to disclose true information in securities market trading activities.Judges can use joint and several liability to compact the legal responsibility of intermediary agencies’ gatekeepers,but the determination of responsibility should also comply with the principle of "equivalent liability".If the legal responsibility is too light,it will make intermediary institutions reckless and engage in illegal activities for the sake of interests.However,if the legal responsibility is too heavy,it will make securities intermediary institutions bear too high economic risks,making them unable to bear the burden and difficult to develop,which will also have a negative impact on the healthy development of the securities market.Therefore,the distribution of civil liability for false statements by securities intermediaries is receiving increasing attention.This article is divided into four chapters:The first section of Chapter 1 first divides the scope of securities intermediary institutions discussed in this article.Although China does not define the concept of "securities intermediary institutions" in legislative form,according to relevant laws and regulations,it can be inferred that securities intermediary institutions in the law mainly refer to recommendation institutions,underwriting institutions,and securities service institutions.In addition,the author provides an overview of the current basic regulatory system for civil liability for false statements by securities intermediaries in China,and concludes that the rigid joint and several liability stipulated in the Securities Law has constituted a legislative conflict with other legal norms.The second section reveals the reasons for emphasizing the distribution of civil liability for false statements by intermediary agencies.The civil liability of securities intermediaries mainly plays two functions,one is compensation function,and the other is deterrence function.These two functions play an important role in the healthy and stable operation of the securities market.The second chapter elaborates on the dilemma and reasons for the allocation of civil liability for false statements by securities intermediaries.At present,there are four types of judgment results in judicial trials for disputes over false statements made by intermediary institutions,namely,the intermediary institution does not bear joint and several liability,bears full joint and several liability,bears supplementary liability,and bears proportional joint and several liability.The dilemma in the allocation of civil liability for false statements by securities intermediaries is as follows: firstly,the standards for the allocation of civil liability for false statements by intermediaries are not unified;secondly,securities intermediaries bear excessive civil liability.The above two dilemmas are caused by the single form of joint and several liability stipulated in the Securities Law,which does not meet the need for "equivalent liability" in judicial trials.Currently,there are loopholes in the determination of fault,and the boundaries of responsibilities between intermediary agencies are not clear enough.The third chapter is the analysis part.The first section delves into the types of false statements made by intermediary institutions and the types of joint and several liability assumed by intermediary institutions for false statements under the Securities Law.In the second section,the basis for assuming civil liability for false statements by intermediary institutions is divided into three categories,namely the information disclosure obligation of intermediary institutions,the attention obligation of intermediary institutions for false statements,and the diligent and responsible standards of intermediary institutions.The fourth chapter puts forward suggestions on how to scientifically identify and reasonably allocate the liability for misrepresentation by intermediary agencies.Firstly,it is necessary to distinguish the types of joint and several liability applicable to different faults;Secondly,it is necessary to introduce an expert appraisal mechanism to provide a standard for the standardization of legal implementation;Finally,it is necessary to clarify the boundaries of the responsibilities of intermediary institutions,and the most crucial thing is to play the leading role of the sponsor in various stages of securities issuance.At the same time,it is also necessary to clarify the boundaries of responsibilities between other intermediary institutions,so that each intermediary institution "belongs to its own responsibility".