Appropriate management measures | "appropriate" to speak new language (1) seek "appropriate" in practical terms

Release Time:

2018-05-30 15:27

Editor's note: On July 1, 2017, as an important tool to protect the rights and interests of small and medium-sized investors, the "Measures for the appropriate Management of securities and futures investors" (hereinafter referred to as the "Measures") will be implemented, presumably everyone wants to know what the "Measures" mean for investors, especially small and medium-sized investors? That small series in this article to seek "suitable" and everyone talk about.


As a "new regulation", the "Measures" has attracted wide attention from investors since its release.

As Uncle Gu said, in the market, there are many kinds of securities and futures investment products, which are not only professional, but also complicated legal relations, and the characteristics of risk and return are also very different.

For small and medium-sized investors, due to the relatively weak professional investment knowledge, risk identification ability and risk tolerance ability, legitimate rights and interests are vulnerable to infringement.

By strengthening the appropriate management obligations of operating institutions, the Measures clarify the institutional arrangements for providing appropriate products or services to appropriate investors, and to a certain extent help avoid investors from undue investment risks. In this way, the Measures are conducive to protecting the legitimate rights and interests of small and medium-sized investors, and at the same time, it is also the actual need to adapt to the characteristics of Chinese investors and strengthen investor protection.

Looking beyond the borders, appropriate management is a system gradually established and improved in mature markets such as the United States, the European Union and Japan in long-term practice according to the actual problems of investor protection, which has become the common practice and basic principle of the international capital market.

In 2008, the Lehman minibonds scandal occurred in Hong Kong. At that time, many individual investors who lacked the professional ability to identify risks were exposed to the risk of capital loss due to "inappropriate" sales practices of management institutions.

This storm has made us more clearly realize that when operating institutions sell products or provide services to investors, they should understand the relevant situation of investors and assess whether investors know the investment risks and whether they are suitable to participate in investment. The purpose of the appropriateness assessment arrangement referred to here is to determine whether an investor is fit to participate in an investment in a product or business.

In a word, investment must also pay attention to practical and "appropriate"!

Perhaps, investors are also aware that in recent years, there are provisions on the appropriate management of margin financing, Hong Kong stock Connect, stock options, bonds and other businesses launched in our market. In this context, the introduction of the "Measures" has unified the previous appropriate management provisions of various markets and relatively scattered businesses, further improving the institutional system of investor rights and interests protection, which is more conducive to promoting the stable and healthy development of the capital market, and also makes the investor rights and interests protection system in our market more solid and perfect.

Specifically, the Measures mainly provide for the protection of investors' rights and interests from the following aspects, and we will introduce them one by one in the following short articles.

Statement: The above information does not constitute any investment advice and investors should not use this information as a substitute for their independent judgment or make decisions based solely on this information. Shanghai Dingfeng Asset Management Co., Ltd. strives to provide accurate and reliable information, but makes no warranty as to the accuracy or completeness of such information, and assumes no liability for any loss arising or likely to arise from the use of such information.

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