The Advance Payment System In Securities Litigation

Since 2002,when the court of China began to accept the Securities Misrepresentation cases,the actual litigation rate of such cases is far lower than the expected level.And because the securities industry misrepresentation case has the particularity,such as market factors,administrative punishment procedural prerequisite,victim special subjects and so on,resulting in the case of prosecution and litigation process is very long and difficult to reach the goal of litigation timely and fully protect the legitimate rights and interests of the parties.In order to promote the establishment of a diversified dispute settlement mechanism and to safeguard the legitimate rights and interests of the victims,the first payment system as a viable alternative compensation mechanism,there are many advantages of the proceedings do not have.The introduction of the document indicates that the establishment of the first payment system has entered the agenda.The establishment of the securities industry Advance payment system,not only in the protection of investor's point of view,is an important institutional innovation,solving mechanism in terms of the securities industry in civil disputes in China,is also a major breakthrough and reform.However,due to lack of case practice for reference and academic research has not yet mature theoretical results,the implementation details of the system has not yet introduced.Although the system is considered to be the major institutional innovation,the Commission also explicitly introduced the relevant institutional rules,but because the system is essentially a lawsuit in alternative dispute resolution mechanism,so must respond from the litigation perspective of legal nature of this system,the effectiveness and value of law.In the first chapter of this article,we will analyze the legal nature of the system and the legal effect of the relevant dispute resolution.In the second chapter,this paper will analyze the value basis of advance payment system.