Study On Advance Compensation System Of Security Market

Advance compensation system of security market is a system with characteristics of our country during the development of our security market.the Securities and Futures Commission spokesman Xiaojun Zhang said,"the advance compensation system is conducive to the effective implementation of the responsibility of intermediaries,to curb fraudulent behavior,and to strengthen the protection of investors.Advance compensation system of security market is when the fraudulent behavior happened during the listing,the subject who commit to compensate advanced shall bear the responsibility of the securities fraud civil compensation of the investor's loss before the lawsuit of the securities fraud civil compensation,while maintaining securities market stability and help to curb the occurrence of fraud,so it is worth pursuing.But from the current practice of advance compensation system of security market,there still exposed a lot of problems.This paper attempts to study the practice of the advance compensation system of security market and analyze the shortcomings of this system,and then put forward some suggestions on perfecting this system.The main content of this paper is as follows:The first chapter is mainly describe the advance compensation system of security market.This chapter first lists the definition of advance compensation system of security market of the securities market,and then summarizes the concept of the advance compensation system of security market on the basis of the comprehensive analysis of the connotation of this system.Secondly,it analyzes its characteristics on the basis of clear conception,including the scope of application,the basis of liability,the time of compensation and the right to recover,so as to better grasp the connotation of the securities market.Finally,the paper expounds the significance of the advance compensation system of security market in protecting the investors,and also clarifies its role in stabilizing the market and improving the business level of the securities market,and emphasizing the positive significance of the existence of the system.The second chapter mainly studies the advance compensation system of security market based on the analysis of the practical practice cases of this system.First of all,a brief introduction to the three cases of this system: the current practice in China has completed two case,the other one is only a notice will be the advance compensation,but its first compensation agreement is still in the draft stage,did not enter the real implementation phase.Secondly,combined with the case analysis,clear the nature of the advance compensation agreement.Thirdly,on the basis of the case study,analysis the content of the payment in practice,including the scope,the calculation of the amount of compensation.Finally,a special compensation fund was discussed.The special compensation fund is set up by the subject of the advance compensation which is specially designed to compensate the loss.The discussion here includes the operation of the special compensation fund and the payment of the compensation.The third chapter analyzes the shortcomings of the securities investment system in the securities market on the basis of the above summary and case analysis.First of all,there's no introduction of securities market with the advance compensation system related to the law,resulting in the lack of a clear legal basis for the system,the legal status of the lack of.Second,from the current attitude of the Commission,tend to be the advance compensation system of the main body of the payment system is limited to the sponsor,but it is unreasonable.Because in the legal provisions of the sponsor institutions should not be more than other market stakeholders to assume more responsibility,and so it's very easy to produce the cost of passing the problem.Again,although the foregoing claims that the payment agreement is a settlement agreement,although it is realistic,there are still many problems that need to be addressed.Such as: the lack of coercion of the settlement agreement,any party will not comply with the previous efforts will result in the torch;another settlement agreement is limited by the principle of relativity of the contract,the effectiveness of the third person is also flawed.In the process of development,the lack of investor and third party independent institutions involved in the process,there are some flaws in their procedures.Finally,the advance compensation system is currently on the advance compensation of the main body of the protection also shows its shortcomings.At present,the SFC encourages the establishment of the system,so in the IPO process will have priority through the promulgation of the commitment to the issuer,which in fact caused the "kidnapping" of the subject.And how to recover after compensation did not further stipulations,if the advance compensation of the main agent can't recover its compensation back,then the subject who commitment to advance compensation will more cautious,which not good to the establishment of the system.The fourth chapter is mainly for the above-mentioned pre-payment system exposed the problems raised by some of the recommendations.First,in general,we should strengthen the construction of the legal system of the advance compensation system,clarify its legal status,and adhere to the principle and the specific combination to enhance its operability.Second,improve the entity system of the advance compensation system.Including the expansion of the scope of the main payment of the main,further clarify the scope and amount of compensation calculation,clear the effectiveness of the advance compensation agreement.Third,in the process should also be improved.Including the signing of the link to the obligation and increase the payment agreement system in the process of hearing the link.Fourth,we must strengthen the protection of the main payment of the main,in order to balance the interests of all parties to promote the development of the system.