Study On The Chinese Securities Investor Protection Fund Legal System

The Chinese Securities Investor Protection Fund is to build on the basis drawing abroad experience. Comparing with developed bond market abroad, the bond market of our country does not form rational effective operating mechanism. Impingement of investor is extremely easy to receive the bond market risk. And the risk frequently sends out a meeting which leads to investor confidence losing and makes bond market become water without a source. Founding the Securities Investor Protection Fund has important meaning to protect an investor's benefit. We can not copy abroad experience blindly in process of designing system. We ought to make adaptable adjustment with a few of reality of our country. Although our country in legislation has already made very big effort, we should discover defects as far as possible, and make every effort to give a repair.The first chapter has discussed the necessity of setting up the Securities Investor Protection Fund, including two aspects mainly from the basis of rationale and reality. First, the Securities Investor Protection Fund being to choose social departmentalism as value seeks the maximum benefit, the lifting attaching importance to the balance of the social entire development, ensuring social overall efficiency. Moreover, there are a lot of private investors in our country in the bond market whom are facing high risk bond market, once "the jail is covered with" in a single day they may have to go bankrupt, becoming a social instability factor right away. Having protected the benefit of the small and medium investor is just to ensure society economy safety. Finally, Chinese bond market does not attach importance to investor benefit right away on idea. The main way that the institutional investor gains a profit in Chinese bond market is "a pattern being the banker". The investor who makes use of a private investor going after the mentality going up battle falling cashes in on. In this process, the private investor is always in a hobble. The small and medium investor is become the gravest group in the disaster. A great quantity of the problem ticket merchant springs up, which is the same as to "add to the misfortunes of a man who is already unfortunate". A lot of small and medium investors cannot get reparation by "the cover jail", whose confidence has been accepted a heavy blow. This is very disadvantageous to development of bond market.Facing sustained fan state of low bond market, now the government treatment way is administrative intervention, being given out by centre bank reloan to make up the fund leak .Though reloan of the centre is capable, having relieved a security company's crisis to a certain extent, the administrative intervention way also exist abuse, a line to reloan which is not market-oriented operation way, dealing with the problem resolving a security company, exists a lot of abuse. Chinese Securities Management Congress gathers together multiple role single person, both market place person calls , leader ,marketplace inspection person ,referee game regulation working out person , facing the administration target may conflict mutually much, intensity of law enforcement goes beyond the limit in the field of some , intensity of law enforcement is insufficient in the field of another a few. Be necessary therefore setting up the Chinese Securities Investor Protection Fund.The second chapter has introduced the Securities Investor Protection Fund in the entity content and procedure of payments. The recourse of the fund is the important content of the Securities Investor Protection Fund. Unlike the administration of rescuing markets by"reloan"provided by the central bank in the past, the fund reparation adopts the principle "What is used for the market is from the market". The Securities Investor Protection Fund reparation makes some loss to investors due to the unsystematic risk in securities market. The time condition of fund reparation is when security companies are adopts mandatory inspection measures, such as rescission, being closed down, go bankrupt or put administration into practice, being taken over, trusteeship manage and so on. The object of fund reparation is the small and medium investor. Judging from the patterns of abroad investor reparation fund, which can be divided into two kinds patterns, one is the independent pattern, the other one is the subsidiary pattern. The standard of the division is whether the fund operates independently. Although independent pattern is in the name of independence, in fact, that operation of bond investor reparation fund company is superintended close by the bond superintending administration. This kind of division mixes up the fund operation pattern and oversee pattern, the independent and subsidiary standard is uncertain, is independent security overseeing organization or self-discipline organization of securities. The fund operation pattern explains that is the fund is raised, used and administrated by which subject, whether is operated by independent fund corporation. Certainly, the fund operation accepts certain supervision and management. Generally, all the countries in the world adopts the independent operation pattern. The fund has independent personality.On reparation procedure, there is no ceiling regulation about the reparation of our country Securities Investor Protection Fund. The time of complaining is short .But the bond investor's number is large. The region disperses comparatively. So the time of appealing is limited in 90 days. It is not impartial to some investors. We ought to prolong a fund rationally appealing against a time limit, and stipulate it concretely in law and regulation of the fund. Moreover the protection fund reparation procedure should be tied in wedlock with security company liquidation procedure. The Securities Investor Protection Fund Company getting involved in security company liquidation process realizes the protection to customer assets benefit from the bond.The third chapter has discussed bond investor the deficiency and perfect measure of the protection fund. The deficiency mainly includes: The fund source is limited, the range is limited .It is easy to lead to the problem of reversing choose for the security company and the investor in the exchanged process and it is difficult to ascertain the loss of the investor. In addition, there are some absences of system, such as the investor protection and education hiatus, the upper hiatus of system and so on.Specifically for existential problem, the author has brought forward superficial idea, about those how to improve and perfect, suggesting that the fund source channel of the protection of investors should be broaden. This is only one aspect of problem, impartial problem is the another aspect of the collection of fund , that is , high grade ticket merchant needs to pay for the loss of the poor quality ticket merchants "buries Shan " , responding not to give equal treatment to high grade ticket merchants and poor quality ticket merchants. The Securities Investor Protection Fund and Stock Exchange risk fund, and the bond settle risk fund all are system to resolve bond market risk. Stock Exchange risk fund, the bond settles risk fund and the Securities Investor Protection Fund, as the mechanism of keeping watch and resolving the risk, have the different function. But they link up on effect the front and back. The securities investor protection fund looks like a final "relief valve" more. Therefore, the triple ought to, in the process of operation, perform its own functions and mutual coordination. Perfecting civil liability mechanism in bond law and regulation and realizing mechanism makes an investor have the law basis clear and definite when he carry out a lawsuit.Make a long story short, after the Securities Investor Protection Fund from "bringing a bond here" abroad, we need to think deeply and probe calmly. We should discover deficiency, then improve and perfect bring the maximal efficacy owing an item system into play.