Study On System Of Sponsor's Antecedent Compensation

In China's securities market,individual investors are in a disadvantageous position in rights protection.For a long time,it has been difficult for them to obtain effective remedies through civil lawsuits.The system of sponsor's antecedent compensation is the measure taken by the CSRC to protect individual investors.This system is conducive to safeguarding the legitimate rights and interests of investors.However,the existing provisions of the system do not balance the interests of all parties,so it need to be improved.This article starts with introspecting the regulations of the China Securities Regulatory Commission(CSRC)on the system and the cases of the practice and discovers the current problems of the system.And last the article concludes with suggestions for improving the system.This article includes three chapters.The first chapter analyzes the weak position of individual investors in securities market and relief.Considering the difficulties in protecting rights,it is proposed that China's investor relief system should give individual investors an inclination to protect.This chapter also analyzes the controversy over the system and the practical significance of the system.The second chapter first analyzes the civil liability of sponsors in false statements,and the legal nature of sponsor's antecedent compensation,and proposes that the faulty sponsor institution bears joint and several liability in the false statement and proposes that the nature of this liability is tort liability.The sponsor's prior commitment is a unilateral promise.Under the current legal system of our country,this commitment cannot directly generate creditor-debtor relations.This commitment is essentially an offer from a sponsor to unspecified investors.In addition,this chapter proposes that since the payment is often made before the judicial decision,many problems such as the scope of the damaged investor and the amount of compensation have not yet been determined.In order to solve the difficulties caused by the above problems,in practice,the sponsor institution adopts a reconciliation method to complete the payment.This chapter also introduces the regulations of the CSRC on the system and the latest revisions of the Securities Law.Through case studies,it finds that the current system lacks the rules of the superior regulation and implementation rules,resulting in the lack of fairness in the procedure and the fact that the claimant's right to recovery has not been effectively protected.This chapter also believes that the current regulations do not balance the interests of related parties,and there are defects such as the violation of the principle of freedom of contract and the principle of responsibility.The third chapter gives suggestions for perfecting the system from the aspects of institutional positioning,the subject of compensation,the convergence with other systems,and the implementation of settlement agreements.