The Protection Of The Rights Of The Third Party In The Securities Administrative Reconciliation

Securities administrative reconciliation is a new flexible enforcement approach introduced in recent years in our country,which helps to efficiently solve the regulatory problems of increasingly hidden illegal activities in the securities market.However,in the practice of securities administrative reconciliation,it often only pays attention to the interests of administrative agencies and administrative counterparts,while ignoring the interests of third parties.Considering the potential erosion of the authority of administrative agencies and the harm to public and third-party interests caused by the high flexibility of the securities administrative settlement system,this article focuses on the problem of the lack of a third-party interest protection system.Through an analysis of China’s securities administrative settlement system and its practice,the article summarizes the issues in third-party interest protection,including the lack of protection for the right to be informed of third-party subjects,the narrow avenues for relief available to third-party subjects,and the imbalance in punitive measures imposed by securities administrative settlements on various parties.To address these issues,this article examines securities enforcement and settlement cases involving the China Securities Regulatory Commission,the Securities and Futures Commission of Chinese Hong Kong,and the U.S.Securities and Exchange Commission to summarize valuable experiences in protecting the interests of third parties in cross-border securities enforcement and settlement.The article puts forward suggestions for improving the protection of third-party interests in China’s securities administrative settlement system,including optimizing the participation of third parties in securities administrative settlements and ensuring their right to be informed.It also suggests expanding the remedies available to third-party stakeholders and clarifying the evidentiary effect of administrative settlement documents in judicial remedies.Additionally,the article proposes establishing discretion criteria for punitive measures in securities administrative settlements to protect the interests of minority shareholders in listed companies.