Alternative Dispute Resolution Of Securities Disputes

Securities industry plays a more and more important role in our national economy. Meanwhile, all kinds of securities disputes occur more frequently because of our incomplete securities industry system. Those disputes affect not only the legitimate interests of the investors but also the future of securities industry. Thus, to establish a diversified resolution mechanism of securities disputes in China becomes a key issue that we have to face and challenge.Alternative dispute resolution and litigation are both the effective methods to resolve the securities disputes. However, ADR fits the securities disputes better due to its features. US and UK realized this at a very early stage and have developed their own series of theories and mechanisms. As useful references, those theories and practice will undoubtedly help us to improve our ADR mechanism of securities disputes. So this thesis emphasizes and studies their distinctive ADR, Arbitration and FOS, and then makes some preliminary suggestions on how to improve our securities ADR accordingly .This thesis is composed of four chapters. The first chapter is an overview of securities ADR. It describes the definition, attributes and types of ADR, mainly discussing mediation, arbitration and ombudsman, and clears the advantage and value of ADR on resolving securities disputes. Thus, it proves the necessity and feasibility of establishing ADR mechanism of securities disputes.The second chapter mainly discusses the theories and practices of ADR in US. Most of securities disputes in US are now settled by FINRA's arbitration. Because of securities history and legislative consideration US choose arbitration as her primary method. Therefore, the thesis describes the background of the securities law and regulatory system and outlines the history of arbitration before introducing this mechanism in details.The third chapter briefly describes the theories and practice of ADR in UK. UK introduces FOS, which is now considered as the predominant ADR of securities disputes in UK, and creates a series of related systems to support its efficient operation,. So the thesis gives a panoramic view of securities disputes mechanism at first, and then concentrates on the details of this organization and its operation.The fourth chapter analyzes and compares the arbitration of US with FOS from the aspects of framework and the conception of fairness, and provides some specific recommendations to improve our ADR mechanism of securities disputes based on the state of the industry and law in our country.