Study On Legal System Of Securities Investor Rotection Fund

Securities Investor Protection Fund has two aspects of the system characteristics: on one hand,it can provide financial compensation for securities investors, because of this, the investors’confidence could be strengthen in long-term investments in the capital market. on the other hand,itplays a significant role in continuous monitoring of the securities company’s operating condition,and it can prevent, resolve and deal with financial crisis, therefore, supervision authorities ofvarious countries attach great importance to it, especially developed country. Since theestablishment of Securities Investor Protection Act1970, British、Germany、Hong Kong andTaiwan Island also established their own system of securities investor protection fund insuccession, in order to unify the Securities Investor Protection Standard under the framework of theEuropean Union and protect small and medium-sized investors better, European Union enforcedInvestor Compensation Plan in1997. Based on better protection of small and medium-sizedinvestors, which can maintain their investment confidence and promote the development ofhealth practices in the securities market, in June2005, our country promulgated Security InvestorsProtection Regulation，which stipulate and establishment of securities investor protection fund.Since then, Securities investor protection fund of our country has appeared in the stage of capitalmarket in our country.However,it is a complex system engineering of establishing and improving of the SecuritiesInvestor Protection Fund. It is a big challenge to make sure that how to operate smoothly in theever-changing capital markets and play its due role fully for the legal system of China’s InvestorProtection Fund. With a view to the current securities legal regime of our country, design andpolicy arrangements of Investor Protection Fund are not yet clear, and the defects is endless.The first part of this article is an overview of the legal system of the Securities InvestorProtection Fund, which describes the meaning and function of the Securities Investor ProtectionFund, The part makes the pre-bedding of the following text.The second part of the article is written about the international legislative experience of theSecurities Investor Protection Fund, especially the key issues of the Securities Investor ProtectionFund system. Through the description of the system of norms, external supervision and internalgovernance and reimbursement mechanism exposition, this part sum up the experience of theinternational legislation to build the Securities Investor Protection Fund legal institutionalframework.In the third part, some deficiencies in the system of the Securities Investor Protection Fundshould be researched, it intends to analyze and review the operation of China’s current system, andthen,it points out the deficiencies in practice of the system of norms, regulatory approach, governance structure, Financing and Reimbursement mechanism in detail.In the last part of this article, basing on the previous article, it makes some optimizationproposal to the above-mentioned deficiencies in the system one by one, which combines with theextraterritorial excellent experience,failures and the reform trends.