Design On Settlement System Of The Securities Regulation

Securities regulatory settlement mechanism is an excellent system design, a new enforcement approach in emerging way of securities regulatory development, which mainly consists of legal authorization, reconciliation principles, startup, negotiation, decision-making, publicly, supervision, legal validity and several major components. What the most important aim of our securities regulatory settlement mechanism is how to find a best way to integrate an effective system with part and domesticate it.Chinese securities market has been to a relatively mature step with the influence of international capital market, it’s time to do migrate settlement to China. What the key point is that Administrative Procedure Act (not issued) and Securities Regulation will provide considerable space for settlement system’s authorization, collectively or on them own. And these legal principles of reconciliation system should be directly used (to the extent of rules) in a comprehensive way. For example, people charged can use the "neither admit nor deny" word when approve themselves. Without prejudice principle, not only ensure the admission and commitment in process of settlement not to be claimed, but also ensure that the results of settlement are not recorded in credit information system as illegal and criminal activities.First of all, settlement is not merely an ex officio behavior, both two sides of the administrative legal nexus have the right to start proceedings as initiator, which can propose at any stage as long as the behavior not be final evaluated (administrative punishment or sentencing). Start could pay attention to the positive conditions of evidence exhausting and payment without seeking any third party’s compensation while the negative conditions are more inclined to considering the public welfare. Negotiation focuses on the essence of the contract and ensures both sides to discuss and bargain on the content of multi-party with each other in practice. In order to implement principle of without prejudice, decision-making should make sure staff and institutions wholly separate of administrative penalties and negotiation. Written decision of settlement includes all processing information as well as payment and other measures, the decision would be known to the public with an open mode, but still limited by business secrets. There would be an independent decision-making before written decision are carry out; the following supervision are complicated, especially they certainly reject the written decision, and it is frivolous to request enforce of court. The special relationship between the securities laws often lead to third-party damage, hearing procedures to protect their right to know and participate.