Perfection of investor suitability classification. At present, the classification of investors in China only restricts small investors from participating in high-risk financial innovation products in terms of economic strength and investment experience, and can only cure the symptoms. Simply shutting out small investors will trigger some investors with high risk preferences to call for rights protection.
According to their knowledge level, investment experience and financial situation, investors can be divided into professional investors and general investors. Institutional investors such as banks, insurance companies, funds and investment companies are all professional investors. Among individual investors, those who meet certain conditions can belong to professional investors, while others belong to general investors. Ordinary investors can apply to become professional investors through a series of strict procedures, including professional knowledge assessment, meeting a certain investment period, and stipulating the proportion of funds they participate in high-risk financial innovation products.
Suitability and perfection of innovative products. Before launching innovative products, securities companies should first clarify the purpose and explain the necessity and effectiveness of due diligence on innovative products. At the same time, it is necessary to conduct detailed research to ensure that at least a relative proportion of investors' needs and risk tolerance match it, and ensure that the promotion target of innovative products is the matching target customers.
Perfection of the appropriateness responsibility of securities companies. Establish and maintain investor information cards and record customer information, such as knowledge level and investment experience. Customer information should be updated regularly to ensure the integrity and accuracy of the information. When providing innovative products or signing contracts, it is necessary to formulate business process standards, and obtain investors' written statement records before investors finally sign them, so as to confirm that investors fully understand the contents and risks of products or contracts.
Because of the information asymmetry of individual investors, securities companies need to do their best to explain the risks. If a securities company violates its obligation of appropriateness, it shall be punished accordingly, including making corrections within a time limit, replacing the person in charge, stopping all or part of its business, or even canceling its business qualification.