Improvement Of The System Of Indemnity In Advance By Sponsor Institutions

To urge intermediaries to perform their duties actively as an important basis for the orderly development of the securities market over the years,with the demand for multi-level development of the securities market,the securities market registration system is fully implemented,higher performance requirements are put forward for intermediaries,and the advance payment system is stipulated and perfected in the revised draft of the securities law and the latest edition of the securities law.The existing practice of compensating the damaged investors through the establishment of the special fund for investor benefit compensation in China mainly includes the Wanfu Shengke case in 2013,the Hirisun case in 2014,and the Xintai Electric case in2016.Although the advance payment can effectively guarantee the compensation of investors' losses,achieve the function of similar reconciliation from the institutional level,urge the sponsor institutions to perform the duties of sponsor and recommendation,and promote the stability of the securities market,These deficiencies,if not better defined and refined,will affect the effect of the payment.There are still the problems of the sponsor organization's lack of start-up time,insufficient legal effect,imperfect compensation procedure and the difficulty of recovery after the sponsor organization.If the start-up time of the advance payment is not uniform,it can not be determined whether it should be before and after the administrative punishment and the litigation procedure,whether the advance paymentshould be given mandatory to be discussed,and how to determine the scope of liability in the recovery of compensation related to the vital interests of investors or even the effectiveness of the advance payment,In particular,the provisions of the minutes of the nine people's meeting on the disclosure date of false statements have also aroused constant controversy among scholars,and the newly revised securities law has not been specified in the new securities law on how to determine the subject of advance payment in the disclosure content and format guidelines of publicly issued securities companies No.1--prospectus and 69 articles of the original securities law,second and third reviews of the securities law,Especially when the amount of compensation exceeds the amount confirmed by the judicial division how to recover,whether the issuer should give priority to the right of recovery in bankruptcy reorganization and cause the academic circles to discuss continuously.At present,there are mainly securities investor protection fund and special compensation fund set up by sponsor to carry on the relief,but the application of both is mainly for the bankruptcy liquidation of the company and does not include the false statement in the scope of compensation,whether it is necessary to include the forfeiture in the source of the fund to achieve the purpose of fund security is also the key to be discussed in this paper.This paper makes it clear that the advance payment should "precede the administrative punishment and the administrative lawsuit" to realize the determination of the starting time of the indemnity procedure,link the advance payment agreement with the professional subject of the litigation and mediation mechanism under the premise of affirming the advance payment to ensure that the agreement obtains the mandatory legal effect,and solve the risk of the second indemnity payment by the sponsor institution.And by making clear the object of advance payment,the amount of compensation and the responsibility between the subject of each responsibility through internal agreement,giving the agency right,referring to the liability of each party identified by the securities investor protection fund as the standard of over-scope recovery,finally by giving the sponsor institution the priority of post-recovery,to ensure the realization of the right of recourse of the sponsorinstitution.The liability transfer is carried out through the sponsor agency's first indemnity liability insurance,and the fine is included in the scope of the fund source to ensure the sufficient source of the indemnity fund.