On The Improvement Of The Mediation Mechanism For Securities Disputes In China

The establishment of the Beijing Stock Exchange marked a new stage in the development of our securities market.As the securities market becomes increasingly complex and diverse,securities disputes continue to occur.Traditional civil litigation no longer has advantages for the resolution of securities disputes and cannot meet the diverse needs of parties to securities disputes,and there is an urgent need to explore an efficient and convenient alternative resolution mechanism.The mediation mechanism has outstanding comparative advantages such as flexibility,professionalism and efficiency in securities dispute resolution.The addition of provisions on securities mediation in Article 94 of the new Securities Law in 2019 and the establishment of the CSI Capital Market Legal Service Centre in 2020 both reflect the necessity and importance of the mediation mechanism for securities dispute resolution,and also bring new opportunities and challenges for securities dispute mediation work.Under the new situation,it is the purpose of this paper to reorganize the legislative and practical experience of our securities dispute mediation mechanism,refer to the construction of achievements in overseas countries,and propose targeted ideas for improvement based on our national conditions and social patterns.The mediation mechanism of securities disputes includes industry mediation,investor protection agency mediation,administrative mediation,people mediation,arbitration mediation and judicial mediation,etc.As judicial mediation and arbitration mediation are mediation in litigation or arbitration,the relevant systems have been relatively well established,so this paper will not elaborate on them.Based on the special characteristics of securities disputes,this article will focus on the mediation mechanism of securities disputes other than judicial mediation and arbitration mediation,systematically integrate the existing mediation methods and subsequent dispute resolution systems,and study their procedural convergence issues.The article compares the legislative history and operation status of our securities dispute mediation mechanism,summarizes the specific procedures of our securities dispute mediation mechanism,and summarizes and analyzes the problems and causes faced at this stage.On this basis,the article conducts a comparative study of the relevant mechanisms in common law and civil law countries,and puts forward useful experiences from abroad in a targeted manner.Finally,the article identifies the principles and models of the mediation mechanism for securities disputes,starting from the fundamental attributes of the mediation mechanism.Led by the concept of principles and models,specific recommendations are made for the improvement of mediation mechanisms at both the legislative and operational levels: to implement the principle of efficiency and convenience,the functional positioning of each dispute resolution institution should be determined first,so as to lay the foundation for the subsequent definition of the scope of application of the mediation mechanism;to implement the principle of legality,specific procedural rules should be improved to ensure that the mediation mechanism is simple but not rudimentary;To implement the principle of protection of the weak,a series of measures should be taken from the initiation of the mediation mechanism to the end of the mediation mechanism The implementation of the principle of legality should improve the specific procedural rules to ensure that the mediation mechanism is simple but not rudimentary;the implementation of the principle of protecting small and medium-sized investors should take a series of measures from the initiation of the mediation mechanism to the end of the mediation mechanism;the implementation of the principle of linking mediation with litigation and arbitration should sort out the internal and external relations of the entire mediation mechanism for securities disputes,so that the procedures are linked and the functions are complementary;the implementation of the principle of confidentiality should be reflected in the micro design and actual operation of the entire mechanism.It is hoped that the improvement ideas proposed in this paper can provide powerful help for the soundness of securities dispute mediation mechanism,effectively improve investor protection and maintain a safe and stable capital market order.