Research On The Whistleblower System Of Securities Illegal Acts

The reform of registration system gives investors more rights to measure the value of companies,and to avoid the "lemon market" that may follow,it is necessary to further strengthen China’s securities supervision.Securities violations are concealed and professional,and it is often difficult to rely solely on government supervision.It is necessary to let the public participate in supervision through the whistleblower system.The whistleblower system can guide the cooperation between the government and the public,promote the securities regulatory agencies to obtain clues of illegal information in time,improve the regulatory efficiency and protect the interests of investors.The whistleblower system of securities violations in China has been initially established,but its effect is not good in implementation.Therefore,it is necessary to learn from the relatively mature foreign systems and use the means of law and economics to analyze the problems of China’s securities illegal whistleblower system and put forward suggestions for improvement.In order to study these problems,besides the introduction and conclusion,the main contents of this paper are as follows:The second chapter is an overview of the whistleblower system of securities violations.This part first defines the whistleblower system,and then combs the origin of the whistleblower system.Finally,it puts forward the significance of studying this system,which is to make up for regulatory loopholes and improve regulatory efficiency,on the other hand,it can improve market discipline.The third chapter evaluates the feasibility and necessity of constructing the whistleblower system of securities violations from the perspective of law and economics.Firstly,combined with information economics,this paper analyzes whether the whistleblower system can solve the information asymmetry problem of securities supervision;Then analyze the system cost and benefit of the whistleblower system to see if it is an effective system whose expected benefit is greater than the expected cost.Finally,a game model is established to analyze the relationship between the whistleblower and the market subject,and it is concluded that the whistleblower incentive and protection system should be improved to guide the whistleblower’s behavior.The fourth chapter analyzes the present situation of the whistleblower system of securities violations in China.At the legislative level,by reviewing and reflecting on the legislation of whistleblowers for securities violations,it is considered that the amount of rewards for whistleblowers in China is low and effective protection measures are lacking.On the practical level,the paper analyzes the current situation of China’s securities law enforcement,and finds that there are a large number of reporting clues,but the quality is not good,and there are too few whistleblowers who actually get rewards.From the reported cases,we can further see the role of whistleblower system in cracking down on securities violations.At the same time,there are still some problems in practice,such as not paying attention to internal reporting,too many invalid reports,etc.It is necessary to improve the existing whistleblower system norms to correctly guide and regulate the bad reporting phenomenon.The fifth chapter investigates the whistleblower system of securities violations in the United States and Britain,analyzes the relevant legal provisions of Sarbanes-Oxley Act and Dodd-Frank Act,and explains what can be used for reference by our country;And summed up the applicable scope and graded disclosure system in the legal provisions of the whistleblower system of securities violations in Britain,and analyzed the feasibility of reference for the whistleblower system of securities violations in China.The sixth chapter puts forward suggestions on perfecting the whistleblower system of securities violations in China,and provides reasonable suggestions on perfecting the whistleblower system of securities violations from four aspects: incentive measures,protection measures,internal reporting and information screening.