A Study Of The Construction Of The Compensation Fund System For Insider Trading

This thesis focuses on the construction of the compensation fund system for insider trading,which is divided into three parts:the first part is the overview of the compensation fund for insider trading;the second part is the necessity and feasibility analysis of the construction of the compensation fund system for insider trading;the third part is the concrete design of the compensation fund system for insider trading.This article focuses on the third part.At the beginning,this thesis puts forward the specific concept of insider trading compensation fund,and analyses the legislation and practice of similar system abroad(Federal Account for Investor Restitution Fund,FAIR Fund).This thesis holds the belief that the compensation mechanism for the major illegal acts of insider trading is quite deficient to some extent.It is not only inherently insufficient in the system,but also inadequate in judicial remedies.The Securities Law only stipulates in general that civil liability should be borne without operational judicial interpretation,and there are no other remedies except litigation.The phenomena of insider trading---focusing on "not only the penalty rather than the compensation but also administrative liability and criminal liability rather than civil liability" are prominent.Even the litigation channels are facing such prominent contradictions as difficult filing,trial and compensation,which make it difficult to protect the small and medium-sized investors in the securities market.Therefore,this thesis argues that other remedies need to be explored,and insider trading compensation fund is one of these useful explorations.This thesis argues that the insider trading compensation fund system can expand the path of diversified dispute resolution mechanism,resolve the practical contradictions of strong professionalism and high threshold of compensation in the securities market.This thesis further clarifies the characteristics of compensation fund,such as high efficiency and low cost,and has obvious advantages in compensation mechanism of outside litigation.In order to carry out comparative study,this thesis summarizes and analyses the practice and operation effect of similar false statement compensation fund in practice.This thesis elaborates on the compensation subject,compensation object,compensation content,compensation standard,fund manager and fund source of the compensation fund for insider trading,and clarifies that the compensation subject in general should be the SFC or its subordinate organizations in the appearance of rights;puts forward three characteristics of the eligible compensation object,and puts forward the concept of "insider trading influence period" during which period traders are also qualified to accept compensation,refutes the idea that China only compensates the actual counterparty;defining the compensation content is the investor's difference loss;putting forward the concept of fund compensability,the compensation standard should be consistent with the court's judgment;defining that the fund's manager is "China Securities Investor Protection Fund Corportation Limited";analyzing illegal income,administrative fines and penalties.Several possible sources of funds,such as fines and reconciliation funds,are analyzed,and the special case that the investor is the administrative counterpart when the reconciliation fund is used as the source of funds is put forward.This thesis also analyses and discusses the relationship between the Insider Trading Compensation Fund System and the Insider Trading Inspection and Punishment Mechanism in China,the relationship between the Insider Trading Compensation Fund System and the administrative litigation,criminal litigation and civil compensation litigation,and points out that the Insider Trading Compensation Fund system is not closely related to mediation and arbitration,and summarizes four reasonable starting conditions of the Insider Trading Compensation Fund.Referring to the operation of false statement compensation fund and American fair fund,this thesis puts forward the general operation mode of insider trading compensation fund,and puts forward five specific procedures of application,distribution,hearing,objection and supervision for its details,it also puts forward the manners of the combination with Investor Protection Fund.