Study On Leagal Issues Of Security Investor Compensation Fund

In mature capital markets overseas,the compensation to the investors is the core of market regulation as an important method to protect the investors.In order to provide relative perfect protection to the investors and punish illegal actors powerfully,They create a complete and well-established legal environment.While investor compensation schemes have only just begun in our securities market,the door to civil action is not completely open,what is worse,investors have to face endless lawsuit procedures and excruciating demonstration process in the limited actionable act in violation of securities regulations,which cost so much.The establishment of Securities Investor Protection Fund on July 1 ,2005 has set up a convenient way to get compensated for loses suffering from their security corporation being taken over or pronounced bankruptcy.While when investors get lost form false statement and insider trading that repeated orders to ban ,it is a real challenge to get compensated in today's circumstance. This paper intend to introduce the advantage of Securities Investor compensationg Fund through comparing and analysing the similar fund in America and Canada,furthermore,to put forward the suggestion on establishing the Securities Investor Compensationg Fund .Follow the guidance stated above,this paper can be classified into four parts.In the first part,the author demonstrate the significance of protection of medium-small investors, but speciality and invisibility of the violation against security law make it extremely hard to prove the causation between the investor's losses and unlawful act and the amount of losses.This situation calls for diverse ways to compensate the investors.In the second part,the author Introduce the concept of the Securities investor compensationg fund which stresses compensation after the invent through alternative dispute resolution way. This part display relevant legislation experience in USA and Canada,providing necessary material for the establishment of this system in China.The third part, as the core of this paper,analyse the necessity and feasibility of the establishment of Securities investor compensationg fund in our country. The protection of medium-small investors has special meaning in domestic stock market. Although we have set up investor protection system, it still cannot protect the medium-small investors completely. So it would be a good choice to establish the mainland investor compensationg fund ,since our capital market was built by government and still takes the burden of the reform of state enterprise. The establishment of Securities investor compensationg fund will benefit the investor,the supervisor and the offender.The fourth part,the author refer the successful experience of the USA and Canada as well as the running of Securities Investor Protection Fund in our market ,in hope to provide for positive implication to mainland China ,especially the relationship between Securities investor compensationg fund and civil action.