Securities Investor Protection Fund Legal Issues Studied

Since the establishment of "Securities Investor Protection Act of 1970 "in USA, Britain, Japan, our country's Taiwan area as well as HongKong Special Administration Zone all one after another stipulate the System of Securities Investor Protection Fund(hereafter refers to as "SIPF System"), EU also formulates and implements "European Parliament and Council Directive 97/9/EC of 3 March 1997 on Investor-Compensation Schemes". Securities Investor Protection Fund (hereafter refers to as "Fund") itself has the fixed connotation, its basic characteristics performance for the suitable standard customer, the suitable standard member, strict compensating pays, limited compensating pays and so on.. According to the demonstration research, regarding to protecting the investor, maintaining the investor confidence, then promoting the normative development of negotiable securities market, the SIPF System displays practical significance. In fact, as one important part of the financial safety net, the Fund is already used by more and more countries. Therefore, profited from the overseas system construction experience, our country had the earnest attention to establish the SIPF System in order to protect securities investor, and started a series of legislations diligently, revised "the People's Republic of China securities law" in the end of 2005.However, the SIPF System construction is one huge system engineering, the establishment of Chinese Securities Investor Protection Fund Company is only stride one decisive step. It is still extremely complicated that how the Fund operates and works as protecting fund in a such changefully risky capital market. Genenally speaking, the rationality, the function, the concrete operation mechanism of the Fund, is controversial in the fulfillment and the theories researches in and out of China, and the public and the Securities Supervizing Authority send the thriving expectation to the establishment of the Fund and set the...