Research On The Advance Compensation System Of The Sponsors

The system of the advance compensation in the securities market means that,when there is a false statement or other fraud in the process of listing the securities,the relevant issuer,the sponsor,the sponsor representative and the issuer management,before the administrative and judicial relief,bear the joint and several liability,and then claim the compensation from the real subject of the liability.In the various securities issuance cases,the reason investors can hardly get full relief is that China's investor protection system is not perfect,so that investors can only passively accept the "settlement" type of solution way in the process of claiming the compensation.In addition,the ineffective participation of investors in the process of formulating a settlement scheme and payment method is not only contrary to the principle of full disclosure but also to the principle of fairness in the securities laws.Therefore,the system of the advance compensation should be applied in our country's securities market in order to improve the system of liability and make up the dilemma of investor protection and relief in the securities issuance,which has an important significance in the improvement of China's securities system and implementation of the"registration system".This paper starts from the sponsor system,and analyzes the function,the nature and the theoretical significance of the system of the advance compensation in the securities market.At the same time,the author pay attention to the application of the system in practice,and then analyzes the mode,function and deficiency of the system.On the basis of that analysis,combining with the practice foundation of our country,the author puts forward some reasonable and flexible solutions to solve the problems of the subject of compensation subject,the amount of compensation and the ways of compensation in the securities market,so as to resolve group disputes in time and properly safeguard the legitimate rights of the investor and keep the security market stability.