Research On The Small And Medium-sized Investor Protection Mechanism Of China Securities Investor Services Center

On November 15,2013,the Central Committee of the Communist Party of China announced the "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reforms".Article13 proposes to improve the financial market system and improve the multi-level capital market system.Investors are important participants in the capital market,and a sound multi-level capital market system is built.The protection of investor rights is of paramount importance.In order to implement the spirit of the "Decision of the Central Committee of the Communist Party of China on Comprehensively Deepening the Reform of Some Major Issues",in 2013,the General Office of the State Council issued the "Opinions on Further Strengthening the Protection of the Legal Rights and Interests of Small and Medium-sized Investors in the Capital Market",from establishing a diversified dispute resolution mechanism.Nine aspects,such as strengthening the education of small and medium-sized investors and improving the investor protection organization system,highlight the specific requirements for the2 protection of small and medium-sized investors.As the leading institution for the protection of small and medium-sized investors in China's capital market,in 2014,the China Securities Regulatory Commission starting from the top-level design and the actual needs of small and medium investors protection,established China Securities Investor Services Center(ISC),a public welfare small and medium investor service and rights organization,leading small and medium-sized investment Legal protection of legal rights,according the requirement“completes the organizational system and explores the establishment of small and medium-sized investor self-regulatory organizations and public welfare organizations according to the “Opinions on Further Strengthening the Protection of the Legal Rights and Interests of Small and Medium-sized Investors in the Capital Market”.ISC has been in existence for more than four years,and its role in the protection of small and medium-sized investors has been highlighted,and the lack of its protection mechanism has also been exposed.In order to better play the role of the investment center and do a good job in the protection of small and medium-sized investors,it is necessary to discuss the existing deficiencies of the investment center and make suggestions for improvement.This paper chooses to take the " Securities and Futures Investors Protection Center "(SFIPC)in Taiwan as a reference,and analyzes the advantages and disadvantages of its investor protection as a perfect reference experience for the investor protection mechanism of ISC.This paper is divided into six parts.The first part is the introduction part.The second part is the definition of the concept of small and medium-sized investors in China.At present,there is no clear definition standard for small and medium investors in China.In practice,the definition criteria for small and medium investors are also inconsistent.The investment methods of securities investors have gradually become materialized as investment products,and there has also been a cross between securities investors and financial consumers.The boundary between small and medium investors and financial consumers has become increasingly blurred.The third part mainly introduces the background of the establishment of ISC and the protection measures of small and medium-sized investors.The fourth part analyzes theprotection mechanism of small and medium investors in ISC with the experience of investor protection in SFIPC.On the basis of the above,the fifth part puts forward suggestions on perfecting the protection mechanism of investors in ISC.The last part is the conclusion of this paper.While affirming the achievements of ISC in the protection of small and medium-sized investors,the introduction proposes that in order to better play the role of small and medium-sized investors in the investment center,it is necessary to learn from the experience of the operation of SFIPC.Improve the protection mechanism for small and medium-sized investors in the ISC.The second part defines the concept of small and medium-sized investors in China.At present,there is no clear definition standard for small and medium-sized investors in China.In practice,the definition criteria for small and medium-sized investors are also inconsistent.As the investment methods of securities investors gradually materialize into investment products,securities There has also been a cross between investors and financial consumers,and the line between small and medium investors and financial consumers has become increasingly blurred.With the investment amount of 500,000 yuan as the standard,China's small and medium-sized investors have many characteristics such as scattered and scattered professional knowledge and weak position in securities trading.The third part is mainly about the introduction and analysis of ISC.The first section briefly introduces the background of the establishment of ISC.The second section introduces the protection measures of small and medium investors in the ISC– the exercise of shareholding,mediation and support litigation,and preliminary results.The fourth part is the analysis of the current investor protection mechanism and its operation process in the ISC.Through the analysis of its operation effect and the comparison with the SFIPC in Taiwan,this paper believes that the current investor protection mechanism of ISC mainly has Four shortcomings.First,the legal support is insufficient.SFIPC is established under the "Securities Investors and Futures Traders Protection Law"(hereinafter referred to as the "Insured Law"),while ISC is4 established according to the "Opinions" promulgated by the General Office of the State Council,in addition,the "Insured Law" also clearly stipulates the specific operational problems of the fund management and investor protection measures of the insurance center,and has formulated some operational norms.However,the investor protection measures of ISC lack clear legal norms.Second,shareholder representative litigation is limited.the "Insured Law" amended in 2009 increased the regulations on representative litigation,while China mainland only briefly mentioned the exploration and disclosure through the "Pilot Work Plan for Holding Shares" and the "Pilot Program for Expanding Shareholding Exercises".The collection method was conducted for shareholder representative litigation.ISC was established more than four years ago,and no shareholder representative lawsuit has been filed.Since the ISC supports the listed company's first-hand(100 shares)stocks,it is far from meeting the shareholding requirements of the “Company Law”.Therefore,how to break the restrictions on shareholder representative litigation holding conditions has become a need to improve the investment protection mechanism of ISC.Third,Single source of funds.As a public service and an activist organization,ISC has no other sources of funding other than the shareholder's contribution.In contrast,SFIPC has multiple sources of funding.If the source of funds for the center is not clearly defined,then the funding problem will become a constraint for ISC to carry out investor protection work.Fourth,support the flaws of litigation.The current litigation mechanism cases are less efficient,the case processing period is long,and investors are paid too long.At the same time,because ISC's support litigation mechanism is still a case lawsuit,the judgment of one case will not have an effect on the expansion of his case.This aspect increases the processing time of the case,on the other hand,it may lead to different judgments caused by the same incident.Even contradictory.On the basis of the previous essays,the fifth part puts forward the suggestions for perfecting the protection mechanism of investors in ISC with reference to the experience of SFIPC and the German model litigation.First of all,this paper proposes to use the opportunity of the revision of the Securities Law to clarify the status and duties of ISC in the Securities Law.At the same time,through the authorization of theSecurities Law,the CSRC will formulate specific operational rules for ISC;Secondly,with reference to the "Guidelines for the Investor Appropriateness System of Securities Companies",combined with the relevant elements of investors,formulate the criteria for the classification of small and medium investors and ordinary investors,and make a clear distinction between small and medium investors and financial consumers.Thirdly,after comparing the shares of listed companies in the investment center,introducing public interest litigation in the capital market,and exempting the securities law,the article considers that the exemption through the Securities Law is the feasible solutions for shareholder's representative litigation restrictions;Then,regarding the source of funding for the investment center,since the China Investor Protection Fund operates independently,and considering the need to ensure the independence of the investment center,it is recommended to withdraw part of the funds from the securities market tax as the operating fund of the investment center;Finally,on the basis of the existing support litigation mechanism of ISC,the model litigation system is used to demonstrate the effectiveness of the model judgment expansion and overcome the shortcomings of the existing litigation mechanism.Finally,for the conclusion of this article,this paper is briefly combed and summarized.The protection of small and medium-sized investors in China has a long way to go.Through the improvement of the protection mechanism,ISC will have great potential in the protection of small and medium investors.