The Research Of Legal Issues Related To The Proprietary Rights And Risks Of The Customer's Money In Securities

At the end of twenty centuries, so many brokerage firms in crisis in China, which almost all embezzle customer's money, have gone bankrupt, making the interests of the customer in danger. Therefore, the issues of the proprietary rights of and the risks to customer's money are critical to securities brokering business. With so many scholars in our country has reached great achievements in the research of this issue, herein, the author tries to do some basic research on it.Chapter One prescribes the nature and functions of customer's money, on the basis of which the author analyzes comparably the customer's money in securities and other related concepts, so as to avoid confusion and to define the extension and limitation of customer's money.Chapter Two approaches the issue of proprietary rights of the customer's money in securities. With the two-level analysis of the exterior and interior legal relationship of the customer'money, it points out that the exterior legal relationship should be brokering while the interior legal relationship should be preserving, therefore the proprietary rights of the customer's money should be transferred to the brokerage firms. After the customer's money is deposited in the band independently, however, the legalized independent position of the customer's money is conflicted with contract of brokering and preserving, so trust arrangement should be introduced to deal with this conflict.Chapter Three explores the depositing risks and insolvent risks suffered by the customer's money. Since the misappropriation risks is the real source for the depositing risks of the customer'money, the author thoroughly explores the misappropriation issues from its means,causes and nature combining with the cases. Meanwhile, the settlement risks and insolvent risks are also approached simply.Chapter Four tries to establish the first legal protection system for the investor's interest. To improve the depositing system, this chapter analyzes the feasibility and necessity of the trust arrangement in the depositing system, and it also explores the depositing body,account and distribution of rights,obligation and responsibilities. Meanwhile, the author also proposes to improve the settlement system.Chapter Five explores the risks response system to the customer's money. Through the analysis of the defects of insolvent system for brokerage firms, this chapter proposes to improve the insolvent process system of the financial organizations and to authorize the priority right to customer. Lastly this chapter also suggests that legal issues related to the securities investors'compensation fund should be improved.