Chinese Wall system in large finance and market institutions —Experience and lessons of the Anglo-American legal system

Abstract

Large modern professional finance and market institutions have inevitably been subject to conflicts of interest, and the Chinese Wall has been an innovation, if not always successful, which provides a convenient solution to those problems. The Chinese Wall is designed to get a balance between commercial reality and public confidence. Attitudes towards the Chinese Wall vary from country to country, depending on the level of such balance. Experience in the relevant industries, however, has cast doubt on the effectiveness of the Chinese Wall in protection of the interest of investors, which suggests the current Chinese Wall is far from ideal, and consequently there is still a long way to improve the design and enhancement of the Chinese Wall, calling for the development of a more supplementary and enforcement mechanism.

Keywords

finance / market mechanism / Chinese Wall system