Study On Advance Compensation System In Securities Market

In recent years,there have been three cases of false statements in China's securities market,which seriously damped the confidence and enthusiasm of securities investors in the securities market,thus affecting the development of the securities market.Therefore,the regulatory authorities have proposed to establish an advance compensation system for the securities market,that is,for investors' loses due to illegal acts such as false statements in the securities market,investors can ask one of the many responsible parties to bear responsibility before the court decision or administrative penalty decision.The party who pays the advance payment can recover the compensation from other responsible parties after fulfilling the compensation obligation.In the case of the Wanfushengke,the Hailianxun and the Xintaidianqi,which were related to the advance payment system,the relevant responsible party took the initiative to pay the investor's losses before the CSRC's administrative penalties and the court's civil judgment,having a positive impact on stabilizing the securities market and protecting the interests of investors.This paper takes the above three cases as the starting point to study the specific establishment and implementation of the securities market advance compensation system.The structure of this paper is mainly composed of three parts: introduction,body and conclusion.The introductory part describes the theme of the text-based securities market advance compensation as the research content.The system is in the stage of preliminary exploration in China not only in theory but also in practice.At the same time,the introduction expounds the value and significance of the text subject research.The preemptive payment system plays an irreplaceable role in protecting small investors in the securities market and stabilizing the securities market.In addition,this part also contains a literature review of previous research on the results of prior claims and the research methods used in this study.Among them,the research methods are mainly literature research method,comparative research method and case study method.The final part of the introduction summarizes the structure and main innovations and deficiencies of this paper.The innovation of this paper lies in the novelty of this paper,the research of the predecessors is less,and it is closely related to the major cases in the securities market.Therefore,the research on this topic has profound practical significance.Specifically,this paper starts from the problems of the existing system operation,such as the lack of soliciting investors' opinions and the approval of fund managers,and proposes to increase the program publicity and solicit investors.The suggestion of the opinion,at the same time,should be passed to the fund manager through the law to approve the payment plan.In addition,in order to ensure that the advance payment system can be implemented,the author proposes that the division of responsibilities between the securities market intermediaries should be clarified,so as to ensure the smooth flow of the compensation process for the advance compensation entity.At the same time,in order to alleviate the pressure of advance payment,it is necessary to establish and improve the liability insurance system of market intermediaries.Finally,because the securities market advance compensation system has been studied less,the shortcoming of this paper is that the research foundation is weak,the theoretical part is obviously insufficient,and the breadth and depth of research need to be improved.The main part includes four chapters.The first chapter is an overview of the advance payment system.Specifically,it includes the origin and connotation of the advance compensation.Combined with the case in practice,the advance compensation system is developed from scratch in the securities market.process.The formation of the first-line payment system in the securities market was independently promoted by market entities,which gradually gained approval from the regulatory authorities and was trying to make it a law.Therefore,it can be said that the formation of the advance compensation system in the securities market is a bottom-up institutional change process.Before the emergence of the advance payment system in the official documents,it has experienced two cases related to the system,namely the Wanfushengke case in 2012 and the Hailianxun case in 2013.The China Securities Regulatory Commission announced in 2015 that it contained Af ter the advance compensation of the rules of the law,the Xintaidianqi case appeared in the same year.The first chapter also introduces the use of advance payments in other areas.Before being applied to the securities market,the advance compensation is mainly used in the fields of consumer protection,insurance,environmental pollution disputes,animal damage disputes and medical disputes.Through comparison,it is concluded that the first point of payment is the common point in different fields: the advance compensation is to reduce the cost of accountability,while the compensation entity often has stronger economic strength than other responsible subjects,and the reputation is a Very important wealth.In addition to the above,the first chapter also elaborates on the current type of illegal behavior that is mainly used for false statements in the securities market,and makes an analysis of the meaning of “advance”.The second chapter expounds the necessity of the advance payment system,that is,why the securities market advance compensation system should be constructed.The primary purpose of building a first-rate claims system is to protect investors.Protecting the legitimate rights and interests of small and medium-sized investors is not only an inherent requirement for the stable operation of the capital city,but also an effective way to maintain social equity.At the same time,it cannot be denied that the system may bring about the side effect of cost transfer,that is,the institutional cost of the advance compensation may ultimately be borne by the investors themselves.The content of the third chapter is the methodology part,that is,how to construct the advance compensation system of China's securities market.It focuses on the major problems that may be encountered in the process of constructing the first-rate claims system,and how to deal with them in theory and practice.Specifically,it includes the choice of the advance compensation entity,whether the compensation entity needs to be mandatory and the formulation of the compensation plan.Among them,the formulation of the compensation plan includes how to determine the procedural issues of the eligible investors,the compensation plan,and how to avoid the moral hazard of the double claim of the eligible investors.This part also introduces the similar system fair fund and investor protection fund at home and abroad,and expounds the place where the fair fund and investor protection fund need to be borrowed in the process of constructing the advance compensation system.The fourth chapter is the continuation of the content of the third chapter.In the process of constructing the first-rate compensation system,it is not only necessary to construct the system itself,but also to ensure that the corresponding allocation system is in place.In the supporting system,the author believes that it is clear that the division of the respective responsibilities between the compensation entities and the risk transfer through insurance will be the key to ensuring the effective implementation of the advance compensation.Among them,the issue of the division of liability of the main body of compensation,and the author believes that the intermediary agencies are required to be comprehensive,but may reduce the quality of their services in their own professional fields.Moreover,the increased cost of work is ultimately passed on to investors.If the standard of recognition of the judgment is finally confirmed,the efficiency of the operation of the securities market will be reduced in the future,and the operating cost will rise sharply,which is unfavorable for the development of the entire capital market.The final part of the conclusion is a brief summary and summary of the whole paper,and the author's research results are briefly explained on the topic of advance compensation.