Research On The Improvement Of The Securities Dispute Mediation System In China

In recent years,with the rapid development of China’s capital market,there have been more and more securities disputes.Lawsuits such as insider trading,misrepresentations,manipulation of markets,and securities fraud have become increasingly prominent.It is the “big trouble” for China when protecting the legitimate rights and interests of investors.The author tried to put forward suggestions for improving the securities disputes mediation system in China by introducing and analyzing the development status,current issues,significance of perfection,and mature experience of foreign countries,from the dimensions of path selection,basic principles,and specific countermeasures.Under the current legal system in China,if investors want to resolve securities disputes through litigation or arbitration,they often have great difficulties.The characteristics of securities disputes are very different from those of ordinary civil disputes.However,in the current legal system of our country,there are no special provisions on securities disputes.The complexity and professionalism of securities disputes also make it difficult for courts or arbitral tribunals to lack sufficient professional competence to determine the legal relationships in securities disputes,the subjects of direct liability,the causal relationships between infringement and damage results,and the specific calculation of losses.In addition,"harmony" has always been our outstanding cultural tradition,and it is also the cultural fulcrum for the establishment and rapid development of China’s securities dispute mediation system.Nowadays,there are still many deficiencies in our current securities disputemediation system.First,there is a lack of systematization of the mediation system,and the division of jurisdiction between mediation agencies is not clear.Mediation The rules vary greatly and there is a lack of top-level design.Second,the scope of the case is not clear,and there are fewer types of securities disputes that can be accepted.Third,the mediation process is relatively simple and general,and it is lack of pertinence and operability.Fourth,the mediation agreement has only contractual validity and lacks institutional guarantees for enforcement.Finally,the concept of safeguarding the legitimate rights and interests of small and medium investors has not been truly implemented in the securities dispute mediation system.It is necessary and urgency to improve the securities dispute mediation mechanism in China.Securities disputes are different from ordinary civil disputes.They have the characteristics of large volume,complexity,professionalism,and wide range of influence.Securities dispute mediation system has advantages such as efficiency,flexibility,confidentiality,professionalism,and economy over litigation,arbitration,reconciliation,letters and other relief channels.In addition,the securities mediation mechanism has efficiency value,free value,order value and justice value,which is of great significance for safeguarding the legitimate rights and interests of investors and promoting the healthy and stable development of the capital market.The advanced experience of foreign countries is undoubtedly of great theoretical and practical value in solving the above problems of the securities dispute mediation system in China.Through the search and analysis of relevant experience abroad,the author believes that the overseas financial ombudsman system represented by the United Kingdom,Japan,and the Taiwan region of China can be referred to.The author introduces and analyzes the three countries’ FOS systems from the three perspectives of system overview,dispute handling procedures,and system value review.In general,the foreign FOS system mainly adopts the “internal agency processing and mediation and adjudication” model,which procedurally guarantees the initiation and implementation of the mediation mechanism.Japan and China’s Taiwan region have drawn on the UK’s FOS system after the global economic crisis in 2008,and developed their own financial ombudsman system in conjunction with their ownnational conditions.The establishment and development of the financial ombudsman system in these countries has important reference significance for the improvement of the securities dispute mediation system in China.Based on the experience of the foreign FOS system,the author puts forward some suggestions on the current stage of the securities dispute mediation system from three aspects: path selection,basic principles and specific countermeasures.In terms of path selection,it is difficult to establish a unified financial ombudsman system directly in the entire financial sector,but it’s possible to introduce the FOS system in the securities industry in stages and in steps,specifically for financial ombudsman agencies.In terms of selection,the author believes that the investment service center has certain potential.At this stage,the securities ombudsman system with China Securities Investor Services Center as a specialized institution can be constructed.At the same time,it can take advantage of the opportunity to amend the "Securities Law" to conduct top-level design of the Securities Ombudsman system,improve the legislative hierarchy,and provide institutional guarantees for the systemization of the securities dispute mediation system.In addition,the development and improvement of China’s securities dispute mediation system should follow two basic principles,namely,focusing on protecting the legitimate rights and interests of small and medium-sized investors,and insisting on giving priority to efficiency.In view of the specific problems in the aforementioned securities dispute mediation system in China,the author proposes four concrete perfect measures,including:constructing a securities dispute mediation system to clarify the system attributes,improving the scope of securities mediation acceptance,specifying the amount standards,and improving the mediation process,establishing the "internal processing and mediation and adjudication" dispute resolution model,improving the docking mechanism and strengthening the implementation of the mediation agreement.Finally,improving the mediation mechanism for securities disputes will help promote the healthy and sustainable development of the capital market,and it will also help maintain social harmony and stability.The author believes that through the continuous improvement of the system and the accumulation of practical experience,China’s securities dispute mediation mechanism will gradually mature.