Research On Legal System Of Advance Compensation In Securities Market

The newly passed securities law establishes the advance compensation system in article 93.As a diversified dispute resolution mechanism,the prepayment system has formed some replicating and popularizing experience in practice,which is of great significance for severely cracking down on securities violations,greatly enhancing investors’ confidence,improving investors’ passive situation and safeguarding their rights.However,there are still deficiencies in the practice of the advance compensation system in the securities market,such as the lack of specific system design,the implementation rules of the protection of the rights and interests of the s advance compensation are not in place,the connection between the advance compensation and the litigation procedure needs to be improved and a series of problems,which need to be gradually improved in legislation and practice.In this paper,based on the basic theory of securities market leading compensation system,in reference to other areas leading compensation system and outside related compensation system on the basis of the practice case analysis,through to our country first claims under the concept of investor protection,combined with China’s national conditions,put forward the suggestion that a sound system of our country securities market leading compensation,in which to deal with the relation between compensation and litigation first,can be included in the v.the docking mechanism and improve the system of collective action;For the initiative of the subject of first compensation liability,positive incentive and negative incentive can be adopted.For the "problem of excessive defense" raised by other subjects of liability,the provisions on recovery from other subjects of joint and several liability by the guarantor can be used for reference and agreed in the intermediary contract in advance.This paper is divided into two parts: introduction and body: The first part is the introduction part,which includes the research background and significance of the legal system of first compensation in the securities market,the literature review at home and abroad,the research content and methods,the main work and innovation,the layout structure of the paper and so on.The main body first discusses the basic theory of the first compensation system in the securities market,which includes the application of the preemptive compensation system in other fields,the connotationand characteristics of the preemptive compensation system of the securities market,the internal and external legal relations of the preemptive compensation system of the securities market and the value of the preemptive compensation system.Then analyzes the general situation and existing problems of China’s securities market prepayment system.This part includes the legislative situation of China’s securities market prepayment system in the basic law and other normative documents,three practical cases of applying the prepayment system and the analysis of existing problems.Once again is the analysis of the advance compensation system of foreign securities markets to draw experience and enlightenment.This part includes the legislative overview of the relevant compensation system in the United States and the United Kingdom,as well as the enlightenment in improving the legal system of investor protection and drawing lessons from the application rules of investor protection fund.Then is to put forward the suggestion of perfecting the first compensation system of China’s securities market.Including determining the qualified subject of liability and the subject of compensation;To specify the compensation scope of the advance compensation;Design fair prepayment development procedures;To clarify the role of investor protection fund,expand the capital source of advance compensation fund,and improve the supervision system of advance compensation fund;Clarifying the effectiveness of the advance compensation and settlement agreement;First compensation system into the litigation docking mechanism and improve the class action system;The incentive problem and the follow-up recovery problem.The last part of the article is the conclusion by combing while leading compensation system in the concrete system design and subsequent problems in the rights and interests safeguard,also need to gradually perfect in the legislation and practice,form a standardized,systematic institutional arrangement,can greatly enhance investor confidence,build health equity securities market under the rule of law environment.