Research On The System Of Civil Compensation Litigation Prosecuted By China Securities Investor Services Center

Modern securities dispute has the typical characteristics of "small amount of claims but large amount of victims",affecting many investors' rights and interests,and the status of the infringer and investors is seriously unequal.The traditional civil dispute settlement method is difficult to meet the efficiency needs of the modern securities dispute settlement,so various countries in the world have designed a variety of different group disputes solution system aimed at the modern dispute.The characteristic of the modern securities civil compensation system lies in the wide application of the settlement mechanism of group disputes,the protection to the market participants by judicial activism,which have restrained the occurrence of the illegal behavior to some extent.At the same time,the dispute settlement system also has problems such as long time consuming and unbalance of responsibility.In China,the securities civil compensation litigation system has problems,for example,it mainly depends on the administrative means while the regulations about civil liability are blur,the utilization rate of the representative litigation is low,the joint litigation is partitioned,the existing litigation mode consumes much resources,and the rate of the claim of compensation is low.Facing the urgent need of China civil compensation and the shortage of existing dispute settlement mechanism,the China Securities Investor Services Center(SISC),as a public welfare institution which has been set up and directly managed by the China Securities Regulatory Commission,carry out support litigations.Due to the existence restrictions on the qualifications of the plaintiff in the traditional law theory and the existing legal provisions,SISC chooses to provide the litigation support to investors according to the fifteenth article of the Civil Procedure Law.By relying on the joint litigation system,the main offenders are held responsible and the listed companies undertake joint liability.It helps investors to protect their rights.This model helps to balance the position of the litigation parties to a certain extent,promotes the fairness burden of the responsibility,breaks through the plight of the investor's rights protection,plays the role of filling the loss and deterring the illegal behavior,and constitutes a beneficial supplement to the Securities Law.However,there are still some problems in the supporting litigation,for example,it does not break through the traditional two party litigation model,the degree of supporting exists dispute,the judgment is not expansionary and demonstrative,and the compensation may be unfair.Regarding the development direction of the civil compensation litigation of SISC,we should learn from the corresponding system abroad to carry out the localization transformation.The dispute settlement mechanisms in different countries are different.There are four models: American class action,German group action,Taiwan group litigation and German test action.There is a great difference in concept between the American class action and the existing litigation system in China.China does not have the supporting mechanism to promote the class action as in the United States,and the corresponding problems brought about by the introduction of the class action are also lack of corresponding response.German group action is mainly applied to the protection of consumers' rights and interests,unfair competition and environmental group litigation cases,which more emphasis on deterrence function,and China also lack its long history of Germany group litigation.There are special legislations guarantee the operation of group litigation in Taiwan.But China does not exist special investor protection legislation.The German test action mainly aimed at the securities market illegal behavior,relying on procedural safeguards for investors,expanding theeffectiveness of the test action judgments.This model can solve a large number of similar disputes effectively,and is feasible and necessary in China.Compared with other models,the test action can satisfies the urgent needs of investor protection in China.As the main body to protecting rights in the securities market,SISC has the practice and theoretical justification foundation to do the test case,so its future development direction should be the test case system.The concrete system structure of the SISC test action involving three stages.Before the trial,it includes SISC applying for test action,choosing the typical case and the plaintiffs,the centralized jurisdiction of the Shanghai Financial Court,the interruption effect of announcement and the validity of the registration.In the trial,it includes litigation claims focusing on damages,procedural rights protecting of non-test action litigants,and giving priority to test action trial.After the trial,it mainly includes the explicit expansion effect of the judgments and the apportionment of the cost of litigation.In addition,to make sure the SISC test case model be truly ground,it also needs to solve the funds support of SISC,establish the independent image of the protection organization,and perfect the information disclosure and supervision mechanism.