On Compensation System Of Securities Investor Protection Fund

The Securities Investor Protection Fund System aims to compensate the investors for the loss due to securities company bankruptcy and otherwise. The system have comparatively successful practicable experiment in many countries and regions. Furthermore, it has turned into the important part of finance safety net, and plays an important role in protecting investor, maintaining the confidence of investor, and promoting the supervising system of negotiable securities company. Profited from the overseas system legislation experience, our country enacted the "The management way of securities investor protection fund" in 2005, and established an independently operational Investor Protection Fund Company on the basis of the way.However, it isn't practical in these documents about Investor Protection Fund which were established hurriedly. To handle the problems about the aspects of compensation system still need refer to the documents before the establishing the Protection Fund System. While these Protection Fund Systems in light of the documents which is the outcome of administration intervening is an obvious transition. The Protection Fund is difficult to play its condign role under such system, just plays a role of "re-providing loans person" So, this article, combining the present actuality of our country's securities legal system, discussed the concrete Compensation System of Protection Fund in deep, on the basis of comparing the difference of many countries' Protection Fund Compensation System and probing into the system forming-causes, and aimed to pave a load for setting up the rationalization, systematization Protection Fund Compensation System in our country.In general, Protection Fund Compensation System includes the coverage, object, standard, and procedure of compensation. Through analysing in deep, there are some conclusion in this articley.Firstly, the coverage of compensation should expand to the investors' loss due to securities companies' illegal action.Secondly, compensation objects shouldn't include the investor who is deliberate to attend the illegal investing action. And we should bring the institution investors into the list of compensation objects, whose character belongs to social welfare, and whose ultimate client belongs to "individual investor".Thirdly, confirming the standard of compensation, the investors' compensation shouldn't blindly refer to the foreign limitation proportion, which can refer to the sum of the individual investors' average investing, adopt the highest amount limitation and constitute the criterion of compensation independently for the institution investors synchronously.Fouthly, When we discuss the relative problems about the compensation procedure, in order to assure the justice of compensation treatment, the following should be pointed out in particular, keeping the specialty and independence of handleing institution, and the reasonable arrangement of compensation time limit should consider whether the investors' profit have been protected indeed.