Yakovlev, A.V. Representation in securities: topical responsibility issues

Abstract: The article includes analysis of the specific features of manifestation of fiduciary obligations of the professional participants of the securities marker in American and Russian legal order, using examples from both the modern legislation and legal practice. Since the bases and confidents of these legal events have always been dynamic, attention is paid to legal approaches to the definition of broker responsibility in cases of representation in securities in the American and Russian legal systems. From this standpoint the author evaluates the practice regarding definition of violation of the main principles of fiduciary duties in comparative characteristics. In the opinion of the author the study of foreign legal order allows to transfer the years of legal experience in the broker industry into the forming Russian legal institution and deal with the practical legal problems, which have appeared after the Federal Law “On Securities Market” and to level out the legal defects of broker activities. The Russian legislation has taken a number of universal norms for fiduciary legal relations from the foreign states and mostly from the legislation of the American legal family. The study of the approaches of the American legal science is necessary to show the difficulties in the legal practice and to re-evaluate the existing approach in Russian civil law practice regarding the general attitude to the legal elements of an offence, when a violation of the very principle of fiduciary relations is not recognized as a priority issue, unlike it is in the Western approach, which may have negative impact on the implementation of the very principles of “good faith” and “due care”.

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