Discussion Of The Security Investment Protection System

With the promulgation of the"Measure for Security Investors Protection Fund"in our country in 2005 and this system has been definite by "Security Law" in 2006 , Security Investors Protection System has been formally established in China. The meaning of it is to convert the insurance which was provided by the government into the insurance which is provided by the security companies. This can decrease the moral hazard and is helpful to the establishment of the precaution against and disposition of the risk of security company, preparing a foundation for the security companies' retreat from the market.However, the Security Investors Protection Fund System is not perfect and its defect, which is the moral hazard and adverse select, will result in a great risk of the maintenance of the fund. There exist some defects of the current system and policy, which will enlarge the adverse effect of this system. How to protect the "Investor Protection Fund" is the starting point of this article.Before the promulgation of this measure, there have been some experts brought some idea for the establishment of this fund, however, their articles mostly focus on the legislative mode and application of other countries, rarely discuss its defect and how to control it on legal. Therefore, author thinks it's necessary to research the Security Investors Protection Fund. Based on the research of the theory, legal nature and legal control on the defect, find the way of improving Chinese Security Investors Protection Fund System.Chapter I discusses the theoretic basis of the Security Investors Protection Fund and its legal nature, putting forward it is a kind of credit insurance and a kind of policy insurance. Furthermore, the differences between the Security Investors Protection Fund System and Deposit Insurance System are discussed.Chapter II introduces the origin of the Security Investors Protection Fund System and the main features of the American Security Investors Protection Fund system.Chapter III sets forth the positive and negative function of the Security Investors Protection Fund System, consulting the regulation of SIPA, putting forward legal control on the negative side.The chapter IV describes the legal environment of Chinese Security Investors Protection Fund system from the angle of the security companies' present situation .Pointing out that there exists some defect in basic systematic arrangement and policy, needing deep going discussion and definition.