Research On The System Of Advance Compensation In The Securities Market

Securities holders are an important part of the securities market,investor protection has been the focus of the securities market.At the same time of the rapid development of the securities market,it is also faced with various kinds of securities illegal acts,which not only seriously damage the legitimate rights and interests of investors,but also bring challenges to the stability and unity of the securities market.At present,damaged investor litigation claims are still facing a series of difficult ies,securities litigation time-consuming,high cost,low odds for investors coupled with difficult to obtain evidence,complex focus of disputes,the protection of investors is not strong,it is difficult to efficiently realize the civil relief function.In order to effectively curb securities violations,create a fair,orderly and healthy competition in the securities environment,strengthen the protection of investors,the Securities Regulatory Commission is actively exploring new directions,and gradually set up a multi-channel securities dispute resolution mechanism.The successful practice of Wanfushengke Branch case,Hailianxun case and Xintai Electric case advance compensation system has opened a new path of investor protection,providing convenient and efficient channels for securities investors.The exploration and application of the advance compensation system in the field of securities is a new development in securities law,which has changed the inherent pattern of heavy criminal and administrative punishment and light civil compensation in the past,and puts investors in a more prominent position.As an alternative system design,the system of advance compensation provides a new model for the civil subject of securities to set the interest rate.The introduction of the advance compensation system not only conforms to the law of the development of the securities market,but also conforms to the needs of investors' rights protection,regulates the securities behavior while fully protecting the legitimate rights and interests of securities investors,maintains the smooth operation of the securities market,and urges the securities service institutions to perform their duties prudently and in good faith.The reason why the advance compensation system is favored byinvestors is because the system of compensation takes a short time and the amount of compensation is high,can play the function of private law relief and accelerate the realization of civil liability.The application of the advance compensation system in practice ahead of the theoretical development,which also led to the system in the legal level lack of specific rules,system design is lacking,the existing legislative provisions remain on the surface is not yet able to provide a complete theoretical basis for practice,the system must be further refined and perfected,give full play to the advantages of the system.Therefore,the study of the system of advance compensation has important theoretical and practical value.This article analyzes and interprets the advanced compensation system using literature research methods,case analysis methods,and comparative analysis methods,the content of the article includes five parts.The first part of the securities market advance compensation system is described in detail,including the definition concept of the system,characteristics of nature,compensation procedures,significance,the legal relations involved and the basic principles of compensation.The second part mainly combs the three cases of the use of the advance compensation system,through combing the case to understand the details of advance payment,sum up the characteristics of the existing practice of advance compensation.The third part briefly introduces the three extraterritorial investor protection mechanisms,draws on the successful experience from the fair fund system,the order edited share repurchase system and the securities group litigation system,and draws the enlightenment from the extraterritorial experience to construct the advance compensation system.The fourth part discusses the defects and deficiencies of the securities market's advance compensation system,which mainly starts from four aspects: imperfect rules of the advance compensation system,no enforceability of the settlement agreement,the lack of effective supervision of the advance compensation procedure,and the lack of follow-up exercise procedures for the right of recovery.The fifth part of the problems and shortcomings of the advance compensation system to put forward suggestions for perfection,countermeasures are: broaden the source of funds,enhance the ability to pay,reasonably determine the rules of loss calculation and compensation scope;Theestablishment of exceptions provides for the full exercise of the right of recourse.