Improvement Suggestions For The Securities Investor Protection Fund In China

The securities investor protection funds system is a new system our country introductied in 2005.the system has been played an important role in the course of securities company disposal problems in China,it also has made great contribution in the the protection of benefit of investors, and the stability of the securities market. But for China, its, after all, is a new system, in the introduction and practical operation, there is inevitable existing some issues that if cannot be handled in time will seriously affect the protection fund system's functions. It is also based on this, the paper is aims to find out the issues by analyzing provisions in the current system and the actual operation situation, then try to give some improvement Suggestions accord with the actual situation in our country relying on relevant theories of protection fund system and the successful experience of mature securities market.As the content Of securities investor protection funds system is more, and there are consistent opinions for some topics at present, and need not wordy. Therefore this paper is only fitting of securities investor protection funds from the fund raising, management subject, compensation, three key points which directly affect the protection fund operation analysis problems of securities investor protection of our country and make perfect recommend da -tionns. And in the preface of instructions are reasons of why selects these three aspects. After the introduction, this paper will be divided into four parts, carefully discusses problems in the system of securities investor protection funds in our country of and makes perfect recommendations.The first part from the connotation, the legal nature, background, set up purpose, operation mechanism and so on several aspects over-indulgence of securities investor protection funds of the fund system.The second part introduces and analyses mature securities market of securities investor protection funds system from fund raising system, administrative subject system, compensation system. Of course, since there has been a lot of articles about mature securities market protection fund system comparison and introduction, this article will not carry on the comprehensive detailed introduction, only briefly introduces its mature and practice for us to reference innovative points.The third part analyzes the existing problems.in reference system of securities investor protection funds in China from fund raising, management subject, compensation, based on the experience of combining the actual situation of securities investor protection funds in our country and mature securities market countries or regions in these three respects.Through the analysis,this paper argues that the raising system of securities investor protection funds in our country existes problems such as provisions lack of specificity, systematic and capital structure and scale is not reasonable, raise channel imperfect. To the management subject system of securities investor protection funds in our country, this paper analysis from supervision, management, duty, problems on the supervision of the fund management subject in our country are currently regulatory model defects, need timely change, problems In protecting fund management of subject govemanceis that mainly protection fund company board members are government officials, go against the investor benefit protection. In the responsibilities, current protection fund company for conservation fund issued without binding, of the securities firm supervision and risk disposal process participation right also not fully, these problems can seriously affect the protection fund functions. Then, to problems on compensation of securities investor protection funds in our country, this paper analyzes from compensation condition, compensation object, compensation standard.The fourth part makes perfect recommendations aiming at the issues of securities investor protection funds in China. For fund raising system, because there have been many previous articles discusses its law concreteness, systemic problems, this article does not discuss in detail; In raising channels in the problem, this paper argues that except the incomes from fines and confiscations of violate compasses should be subject to the pool of the protective capital fund, still can charge a fee to some potential subject outside securities company, In view of protection fund is non-profit,also should draw lessons from other countries and regions' common practices gives protection fund moderate tax breaks. In addition, still should according to China's development of financial market circumstance timely introduction insurance way, in the problem of capital size and composition, this paper argues that we should raise the proportion of marketization funds, especially investment income's proportion in protection fund in our country. Also should consider establish a regulating mechanism of capital size. For management subject system, the author argues that in the problem of supervision, the current bull supervision model has its'reasons, it's difficult to change for a while, we can only change responsibility of various departments to make more specific provision to minimize the harm this kind of supervision model for protection funds, but ultimately should according to China's conservation fund development situation, execute one person supervision mode; In the internal management, the most important is to increase the proportion public representatives and securities industry representatives in protecting fund company's board of directors, In the responsibilities, should be strengthened the role of protection fund company in securities company liquidation and advance supervision. For compensation system, this paper argues that, China's relevant protection fund compensation defined condition should be used more rigorous expression, and increase exclude protection situations; In protecting objects, our country protection funds for personal creditor excessively "tolerance" while for institution investors are excessively "stingy", we should use for reference from the successful experience of other countries or regions make some sensitive creditor's rights included into the scope of protection, and make some personal creditor's rights ruled out.