A Comparative study of Stock Exchange Brokers in Iran and U.K, Emphasis on their Legal Nature

Nowadays, new financial instruments planning and representation, increase in the level of knowledge and literacy on Securities Markets, enforcement of strategies to prevent from fraud and abuse in this market, and increasing clearness and improvement of information disclosure, are all determinant parameters in the advancement of any financial market. On the other hand, the qualitative and quantitative development of financial markets is impossible without paying enough attention to investigation, overview, and perfection of financial intermediaries. Stock Exchange brokers are considered as the most important and the oldest financial intermediaries in capital market and economical system of any country which can promote the social trust in the capital market and prepare the necessary ground to gather and direct financial and capital resources towards productive activities. As the activity of such intermediaries can be considered as the factor of stability in any Stock Market, exact investigation of their performance seems of great importance: For this reason, in this research legal frame of activity, obligations, and responsibilities have been discussed in comparison to English law. Regarding the attained results it seems that the Iranian brokers have been formed ideally from point of structural and organizational arrangement view and there is no so much difference between their performance and that of English brokers in Stock Exchange and they have relatively similar obligations and responsibilities. The only difference pertains to their legal nature of performance which is Removable according to comparisons conducted in this research and by acceptance of Agency Theory for them in Iran.

Keywords:

Broker , Legal Nature , Agency Theory , Obligations and Responsibilities