Because of its particularity, the internal legal compliance department of China's securities companies must be independent from other departments of securities companies, which shows that the independence of compliance management is the premise of effective compliance. The following is my master's thesis for you, hoping to help you. For details, please visit (www.oh 100.com/bylw).

Abstract: In recent years, the number of violations in China's securities companies has gradually increased, which is directly related to the inadequate legal compliance management within the company. This paper focuses on the analysis of the main problems existing in the legal compliance management of securities companies, and puts forward some targeted suggestions for the existing problems, which is of great practical significance for securities companies to improve the compliance management system and shape the construction of compliance culture.

Keywords: securities companies; Law; Compliance management; Problem suggestion

First, the meaning of legal compliance of securities companies

With the development of China's securities industry in recent 20 years, securities companies began to pay more attention to internal legal compliance. As one of the core risks faced by financial institutions, securities companies have set up legal compliance departments to take charge of compliance risks, and compliance management has therefore become the core department of risk management of securities companies. In Article 2 of the Detailed Rules for the Implementation of Compliance Management of Securities Companies, China Securities Regulatory Commission defines compliance management as? Securities companies formulate and implement compliance management systems, establish compliance management mechanisms, cultivate compliance culture and guard against compliance risks. ? Therefore, establishing a perfect compliance management system is an important means to ensure the legal and compliant operation of securities companies, a good way to enhance the core competitiveness of China's securities companies, and has a great impact on the institutional transformation of compliance supervision of China's securities companies.

Second, the problems existing in the legal compliance management of securities companies

Since the China Securities Regulatory Commission issued the Trial Provisions on Compliance Management of Securities Companies on August 1 2008, the legal compliance management system of China's securities companies has been gradually established, but there are still many problems in the internal legal compliance management of securities companies, and the legal compliance function often fails to play its due role, mainly facing the following difficulties:

1. Insufficient independence of legal compliance management.

Because of its particularity, the internal legal and compliance departments of China securities companies must be independent from other departments of securities companies, which shows that the independence of compliance management is the premise of effective compliance. However, at present, there is a general problem of insufficient independence of compliance management in China's securities companies, which is mainly manifested in the compliance management of senior managers. In many cases, the company's internal control mechanism is a mere formality. Although the Implementation Regulations on Compliance Management of Securities Companies clearly stipulates that the compliance manager of securities companies has certain independence, it is difficult to ensure the independence of legal compliance because the compliance management department and even the compliance director are indirectly constrained by senior management, especially in terms of salary, welfare and performance appraisal.

2. The responsibilities of the Legal Compliance Management Department are not prioritized.

At present, the organizational structure system of China's securities companies generally includes the board of directors, the board of supervisors, the management, various functional departments and branches. All departments under the organizational system should be responsible for the compliance supervision of their business, and the Legal and Compliance Department should review the compliance of all departments. However, the more important responsibility of the Legal and Compliance Department is to identify the compliance risks of the management of securities companies and ensure that securities companies can avoid compliance risks that may cause huge losses to the company. At present, the senior management of securities companies is an important inducement for the outbreak of compliance risks of securities companies, so the legal compliance department of securities companies must focus on compliance management. However, in practice, the Legal and Compliance Department rarely operates the management's business in compliance, and more often checks whether the business of the business department is in compliance. In order to avoid legal responsibility, the business department completely hands over the task of reviewing legal compliance to the Legal Compliance Department, which seems to focus on routine compliance business and ignore the most important compliance work for management.

3. The Legal Compliance Department has become a full-time institution to deal with external supervision.

Because the legal compliance department of a securities company is not the economic business department of a securities company, it does not directly generate economic benefits. Therefore, many small and medium-sized securities companies lag behind the economic and business departments in the construction of legal compliance departments, and there are situations such as low staffing and low management attention. Even the compliance management of individual securities companies is a mere formality, and the purpose of setting up the legal compliance department is to deal with the supervision of external regulatory agencies, and all the responsibilities are placed on external regulatory agencies. Public relations? In fact, as long as external supervision can be handled freely, the legal compliance of securities companies will be completed.

4. There is a lack of legal compliance professionals and a lack of training mechanism for compliance personnel.

Because the legal compliance of securities companies has just started in recent years, the demand for compliance talents is not great. Usually, there are no more than five employees in the legal compliance department of a securities company, and most of the employees in the legal compliance department are people with legal background transferred from auditing and risk management departments, but this is far from the post requirements of legal compliance. With the introduction of new financial innovative products such as margin financing and stock index futures in recent years, the professional requirements for legal compliance talents are more stringent. In addition to their own legal background, compound talents should master some knowledge of finance, finance and computer, and understand the job responsibilities and workflow of other business positions. It can be seen that the professional requirements of legal compliance talents are relatively high. However, at present, the training of compliance talents is very neglected by securities companies, and there is a lack of training mechanism like that of brokerage business departments, which leads to the obvious lack of professionalism of legal compliance talents, and the team of high-quality legal compliance talents needs to be strengthened urgently.

Three. Suggestions on legal compliance management of securities companies

1. Improve the internal mechanism of legal compliance management and ensure the internal independence of compliance management.

The problem of lack of independence in compliance management has existed for a long time, and it is necessary to straighten out the relationship among legal compliance department, management and various functional departments. Therefore, the author suggests that the legal compliance department, especially the appointment, removal, remuneration and performance attendance of the compliance director, must be independent of the management, and the direct superior of the compliance director should be the board of directors and be directly responsible to the board of directors. The assessment of the subordinate departments of the Compliance Director should also be independently assessed by the Compliance Director and supervised by the Board of Supervisors or the Board of Directors. In addition, the Legal and Compliance Department should strengthen active compliance, actively cooperate with other business departments to perform their duties, and ensure that securities companies operate in compliance.

2. Clarify the compliance management responsibilities of all departments and promote the compliance of securities companies.

Article 3 of the Trial Provisions on Compliance Management of Securities Companies stipulates that compliance management of securities companies should cover all businesses, departments, branches and all employees of the company, and run through all links such as decision-making, implementation, supervision and feedback. ? It can be seen from the regulations that the management of legal compliance is not only the responsibility of the Compliance Department, but also the responsibility of the Legal Compliance Department. In reality, all business departments of securities companies require a legal compliance department for all kinds of contracts or investment projects and product business plans within their own departments. Sign? The Legal Compliance Department undertakes the compliance responsibility of the business department, which violates the concept of comprehensive compliance. Therefore, the author suggests that securities companies should formulate the relevant subjects and responsibilities of legal compliance review, and the responsibilities of compliance review should be clearly defined to all departments, and the legal compliance department can focus on reviewing the company's various systems and management decisions, which not only ensures the effectiveness of compliance management, but also promotes a good compliance atmosphere for securities companies.

3. Strengthen the construction of compliance culture of securities companies.

The construction of compliance culture in securities companies is conducive to linking employees' compliance concept with their daily business work, consciously restraining themselves from compliance in their work and reducing the compliance risk of securities companies. Therefore, the author suggests that in order to build a company's compliance culture, the Legal Compliance Department should first set an example and abide by laws, regulations and internal regulations of the company. Secondly, the Legal and Compliance Department should regularly conduct compliance training for employees of the company, and link it with their performance pay, so that employees can cultivate compliance awareness in training. Third, management should be allowed to support the promotion of compliance culture. It is suggested that the general manager or deputy general manager of management should be the person in charge of compliance culture construction, and the compliance director should be the deputy, which is conducive to the protection of compliance culture construction in policy implementation.

4. Pay attention to cultivating high-quality professional legal compliance talents.

At present, the current situation of the legal compliance department of securities companies shows that the demand for compliance personnel is small, but the professional requirements are high, and it is not conducive to the development of internal compliance management of securities companies. The lack of outstanding talents seriously affects the quality of compliance management. Therefore, the author suggests that the cultivation of legal compliance talents is a long-term work, and potential talents can be selected from the fresh college students recruited by the company every year. These college students should have a compound professional background, and then after one or two years of rotation, they will be placed in legal compliance posts, which will not only help legal compliance personnel to be familiar with the processes of various business departments and facilitate compliance work, but also gradually strengthen the influence of compliance departments in the company.

Four. conclusion

With the rapid development of China's securities industry in recent years, its business has become increasingly international, comprehensive and complex, and the compliance risk has become increasingly complex. Strengthening compliance risk management is not only the focus of supervision by regulators, but also the goal pursued by securities companies. Especially after the promulgation of the Trial Provisions on Compliance Management of Securities Companies, more and more securities companies have established internal legal compliance management systems and legal compliance departments to prevent internal compliance risks. However, because the legal compliance construction of China's securities companies has just started, there are many difficulties in legal compliance management, especially the lack of independence in compliance management, the lack of corporate compliance culture and the lack of professionalism in the talent team. There is still a long way to go before the legal compliance management of China securities companies can reach the international level.

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