The investor suitability system includes three meanings: classifying investors, grading products, and matching appropriate investors according to risk levels.
The Measures for the Administration of the Suitability of Securities and Futures Investors cannot provide a very accurate one-to-one correspondence. If the regulations are too detailed, it is likely to be out of touch with practice. Therefore, it is necessary to follow the logic of signing a "letter of responsibility", firmly grasp the subject of "one shoulder and two ends", and make it clear that operating institutions should not only classify investors according to the provisions of the Measures and the provisions of self-regulatory organizations, but also be specifically responsible for classifying products sold or services provided, and formulate an internal management system for product classification. It should be said that accurate grading is the embodiment of the core competitiveness of various institutions. Securities and futures institutions are not ordinary market participants. They have to face both fundraisers and investors, participate in the formulation of rules, and are heavyweight rule enforcers. They can be called one of the main shapers of market order. Therefore, it is necessary to strengthen the appropriateness obligation of operating institutions. When they do their duty, they are sowing the seeds of rational participation in the market.
The Measures detail the performance requirements of securities and futures operating institutions from the aspects of appropriateness assessment obligations, risk disclosure obligations, internal management obligations, and protection obligations of ordinary investors. The "Measures" list the "negative list" one by one according to the specific situation of violations, and stipulate the regulatory measures that can be taken for operating institutions, directly responsible personnel in charge and other directly responsible personnel, as well as serious handling measures and administrative penalties. Employees of operating institutions can also take measures to prohibit entry according to law. It can be said that the Measures is a "legislation with teeth".
If this regulation can be effectively implemented, it can at least partially solve the problem of inequality and asymmetry in sales.