"The Capital Market and Financial Investment Service Act" (hereinafter "the Act") was enacted as of 3 July 2007, which adopts an "all-inclusive system" for defining investment instrument in order to strengthen the competitiveness of the capital markets industry and to protect investors. Moreover, the Act sets down rules and regulations for protecting investors, such as "know-your-customer rule," "the principle of suitability," etc. and a series of "Chinese Wall." On the one hand, most of these newly adopted systems look desirable, and they are designed to better protect investors and enhance the competitiveness of the industry. On the other, the Act has problems with its application as follows. First, since the definition of investment instrument has very abstract wordings, it would cause unnecessary costs to the investors and industry. For instances, the concepts, such as "the possibility of loss of the principal," "the obligation of additional payment," etc. would make the investors and the industry put more money in the pockets of lawyers to figure out what they actually mean. Second, newly adopted regulation on investment solicitation seems to have many difficulties especially in its practical application. In a word, while the new system is very ideal in theory, its applicability stays away from the reality. Since the supervisory authorities seem to have been stuck to only improving old regulations, it would ignore the reality and capacity of the industry. Thus, I am tempted to expect that the industry would pick customers for its own interest, trying to get around the new regulation for investor protection. Finally, the Act puts emphasis on the investment companies` duty of compliance, which is to solve the problems of conflicts of interests as the prohibition of multi-business in a house is put to an end. The industry, however, seems not to be aware of the importance of compliance. It appears that the supervisory authorities don`t have intentions for making regulations or guidelines on this point. I shall claim that the industry can be more profitable through proper compliance in far-sighted strategies. In short, although there are many desirable aspects in the Act, many problems have yet to be solved. Luckily enough, we can have the chance to get some of these problems fixed or corrected by the sub-provisions or administrative regulations before the Act takes effect on 4 Feb. 2009. In this regard, I hope that this review will be helpful for the government and the industry when they try to put efforts into making the more applicable and complete Act.