Study On Legal Issues Of Securities Investor Protection Fund

The investor protection is an important issue in global securities market. Many theories and empirical research demonstrate: the better investors in a region or country are protected, the more developed the capital market is, the stronger the market is able to resist financial risks, and more promoted the economy will be. In our stock market whose principal part is dispersive customers,large numbers of medium-small investors is the puny colony. As the weakest investor group of a largest number, the medium-small investors emergently need a set of complete system to protect their profit. The article analyze the background and reason on the loss of medium-small investors, furthermore, to put forward the suggestion on establishing the Investor Protection Fund and the perfection of relevant regulation.This article can be classified into four parts.In the first part, the author explain the meaning of medium-small investor. After reviewing the actuality of investor, then analyze the four reasons on the loss of medium-small investors, respectively, faultiness in disclosure, faultiness in legislation, faultiness in quitting mechanism, misalignment of government supervision and get the conclusion that the Investor Protection Fund should be established.In the second part, the author make a brief presentation to the history of legal protection on medium-small investors in China. The newly amended Securities Law stipulate that the Securities Investor Protection Fund should be established in China. Taking the international experience on investor protection as a reference, Investor Protection Fund can protect medium-small investors'interest well. Finally, the author illustrate the background and importance of the establishment Investor protection Fund in China.Investor protection, and medium-small investors, in particular, is the core of securities market supervision and the key to its sound development. In the third part , the author take an comparative study on Investor Protection Fund.The forth part of this thesis bring in proposals on the improvement of China's existing investor protection system as enlightened by a comparison of the experience of the developed countries and areas.