On Legal System Of Security Investment Protection Fund

The legal system of Securities Investor Protection Fund is an important component of the investor protection system, and has a significant role in protecting investors and maintaining financial stability. China promulgated the "Measure for Securities Investor Protection Fund" in 2005, and formally established the Securities Investor Protection Fund legal system. However, there are still a lot of problems of the specific design of the system. This paper bases on the basic Provisions of the system, analyzes the successful experience of the securities investor protection fund system in the developed countries (regions), proposed to improve the system from the fund corporation functions, sources of fund, the use of Fund and so on.The following five parts are included in this paper:The first part briefly introduces the concept of the Securities Investor Protection Fund and its legal nature and effect. Securities Investor Protection Fund is a non-investment fund, also is a kind of policy insurance. Securities Investor Protection Fund can protect investors, maintain their confidence and avoid risks of the financial system .it also may have some negative effects such as adverse selection, moral hazard.The second part analyzes the situation of China's securities investor protection fund system. This part analyzes the background of the establishment of China Securities Investor Protection Fund; introduce its legal system and specific content.The third part analyzes the problems of the China Securities Investor Protection Fund legal system. Now , the current investor protection fund corporation's functions can not achieve in practice; it's difficult to determine payment rates; the scope of compensation is blurred; the compensation target provisions are inconsistent; the compensation standard is unreasonable; compensation procedure is complicated ,and the coordination mechanism is lack between the investor protection fund corporation and related organizations.The fourth part introduces the legal system of some developed countries(regions). This part mainly introduces the legal framework, mode of operation, funds raised, the scope of compensation and compensation targets, the compensation standards, compensation procedures, coordination between fund corporations and other organizations in these countries (regions). This part also introduces commercial insurance system and investor education system that established on the basis of the Securities Investor Protection Fund.The fifth Part bases on the reference of successful experience of securities investor protection fund system in developed countries (regions), in light of China's actual situation of the capital market, gives some recommendations to improve China Securities Investor Protection Fund legal system.The author considers that China should fully learn legislative experience from the developed countries (regions), with the current situation of China's capital market; further improve China's Securities Investor Protection Fund system. Firstly, "the Securities Investor Protection Act" should be enacted as soon as possible. Secondly, we should improve the legal system of the Securities Investor Protection Fund, including authorizes corresponding regulatory powers to the investors protection fund Corporation; determine reunification, thinning and highly workable securities companies pay standards; unified compensation object called " investors " and do not distinguish between individual and institutional investors and exclude the relevance of the crisis, clearly determine the scope of compensation and compensation standards; simplify compensation procedures and make sure that the protection of investors protection fund corporation playing a leading role in the process ;and strengthen the coordination between participating organizations. At the same time, we should establish or improve the third-party regime system of customer transactions funds, the bond repurchase system, commercial insurance system, investor education system, and strengthen the supervision of the securities companies, thereby protect the interests of investors better and better.