Appropriateness Management Measures | "Appropriate" New Language (II) Selecting People and "Appropriate"
Editor's note: On July 1, 2017, the “Measures for the Administration of the Proper Suitability of Securities and Futures Investors” (hereinafter referred to as the “Measures”), which are important tools for the protection of the rights and interests of small and medium investors, are about to be implemented. What do investors, especially small and medium investors mean? That Xiaobian talks about everyone in this one.
You know, in the securities market, the type of investor is really rich!
The "Measures" divide investors into professional investors and ordinary investors. Among them, professional investors mainly include financial institutions and their issued wealth management products, social security funds, as well as legal entities, other organizations or natural persons that meet certain conditions. Investors other than professional investors are ordinary investors.
“My colleagues who close the door at God will certainly open a window for you.” In the market, most investors are ordinary investors. Despite being called “ordinary investors”, the obligations of the securities and futures operating agencies (hereinafter referred to as operating agencies) to them are not ordinary.
Compared with “tall” professional investors who have richer investment knowledge and experience, stronger risk identification capabilities and risk tolerance capabilities, ordinary investors tend to be disadvantaged in terms of financial strength, information acquisition, and professional knowledge. The risk tolerance and self-protection capabilities are also low. In order to ensure fairness, the Measures stipulate that ordinary investors enjoy special protection in information notification, risk warning, and appropriate matching.
Next, we look at the story of investor Xiaoyu.
Xiaoyu was more cautious after the previous investment frustration.
The information just mentioned, as well as recording or video recording requirements, is precisely for the protection of investors' rights and interests. The measures for the special protection of ordinary investors under the premise of investor classification are the appropriate products. Or services provided to appropriate investors, the so-called choice of people and "appropriate" and "fit" cause.
In addition, the categorization of investors in the Measures is not immutable, and two types of investors can convert after meeting certain conditions and passing certain procedures. This also reflects the flexibility of the Measures in relation to investor classification requirements. For example, after a professional investor applies for conversion into an ordinary investor, he or she can get the same protection as an ordinary investor; an ordinary investor who meets the prescribed conditions can convert into a professional investor after applying for and obtaining approval from the operating organization. At the same time, it will also assume its own risks and consequences.
Disclaimer: The above information does not constitute any investment advice, investors should not use this information to replace their independent judgment or make decisions based on such information alone. Shanghai Dingfeng Asset Management Co., Ltd. strives to be accurate and reliable, but it does not guarantee the accuracy or completeness of this information, nor does it assume any responsibility for the losses caused or likely to arise from the use of such information.