The Construction Of China Securities Supportive Litigation

The revised draft Securities Law was submitted to the standing Committee of the National People's Congress for second reading in April 2017,more than two years after the first reading.Although the results of the first review have been changed by the second review greatly,the chapter "investor protection" has been retained.Under the background of the slow revision of the securities law,the judicial practice and exploration in perfecting the investor protection system in China has not been stopped.On May 19,2017,the first securities supportive lawsuit in China won in the first Intermediate People's Court of Shanghai,which means that China has taken another big step in the judicial practice of the protection of individual investors.Compared with other securities law enforcement mechanisms,the civil action of securities has not reached the expected state of scholars and investors.But this time,the securities supportive litigation,which takes the China Securities Investor Services Center(ISC)as one of the agents,is trying to break the deadlock in the securities civil litigation,and proves that the securities civil litigation,as an implementation mechanism of securities law,is promising in China.The entity supporting the lawsuit is the ISC,which was registered by the state administration for industry and commerce on December 5,2014.The establishment of ISC is an important measure taken by the China Securities Regulatory Commission to improve the regulatory policy,to enrich the investor protection system and strengthen the protection of the legitimate rights and interests of individual investors.From the perspective ofcomparative law,we can see that there are many similarities between the ISC in China and the Securities and Future Investors Protection Center(SFIPC)in Taiwan.Based on the above reasons,The first part of this paper takes the three implementation mechanisms of China's securities law as the background,and demonstrates that the securities administrative supervision needs to be combined with the securities civil lawsuit from the respective problems faced in the implementation of the three mechanisms,and the securities supportive litigation is the embodiment of this “combination”,thus proving that the securities supportive litigation has certain practical necessarity under the current capital market background in China.The second part of this paper aims to compare the advantages and disadvantages of group litigation,public interest litigation and support litigation in the settlement of securities disputes,and leads to the conclusion that security support litigation is a realistic and feasible choice for China.The third part of this article mainly talks about how to build up a relatively perfect subject of supportive litigation.First of all,by puting forward two different kinds of theories to support the correct of selection of the organizational form of ISC.Secondly,from the perspective of comparative law,ISC can draw lessons from the experience of SFIPC.Finally,based on the local situation of our country,it provides suggestions for ISC from the two aspects of “ standardization”and“flexibility”.As the supportive litigation still cannot fundamentally solve the " large number" problem in China's securities disputes at one time,this paper puts forward legislative proposals,suggesting that China must make special legislation in the field of " investor protection",detailing how to implement the representative litigation system in the securities field.