Research On Securities Administrative Settlement

The Securities Law of China makes it clear straight away that its position is to protect the rights and interests of investors.The revision of the Securities Law strengthened the protection of investors’ rights and interests and further improved the settlement mechanism of securities investment disputes.The security market is built on the confidence of investors.Although China has opened a number of channels for investors to safeguard their legitimate interests,but in China is still based on administrative punishment.The essence of securities administrative settlement is that the applicant pays administrative settlement money and compensates the investors who suffer economic losses,so as to replace administrative punishment.In 2015,the China Securities Regulatory Commission formulated Pilot Measures of Securities Administrative Settlement,which began to break the ice and test the water for administrative settlement of securities.It is necessary to stimulate the vitality of this advantageous system and give full play to its characteristics of timeliness,low cost and high efficiency in order to ensure financial development and stability and strengthen the protection of investors’rights and interests.Apart from the introduction and epilogue,this paper is divided into four parts.The first part starts from the basic category of securities administrative reconciliation and explores its core value and characteristics.The core value of securities administrative reconciliation is to improve the efficiency of law enforcement,reduce the cost of law enforcement,resolve the contradiction between administrative resources and administrative efficiency,rather than weaken law enforcement through reconciliation.The essential feature of securities administrative settlement is the change of supervision concept,and it has the high efficiency of compensating investors’ losses in time and the comprehensive feature of being a means of law enforcement.Clarify the changes and progress of the securities reconciliation system in the process of revising the law.Then it analyzes the influence of securities reconciliation system on different subjects of securities market.The second part mainly defines the "investigation cycle" in the process of securities supervision and law enforcement in China,which is used as the standard to test the operating efficiency of securities administrative settlement.Next,this paper analyzes the only two applicable cases of securities administrative settlement in China,and compares securities administrative settlement,first compensation and securities civil litigation together to test whether the securities administrative settlement system reflects its characteristics of timely,efficient and low cost in the specific operation.Through analysis and research,it is found that there are some problems in the operation process of securities administrative reconciliation system,such as too strict conditions,low efficiency,insufficient connection with other mechanisms,overlapping with criminal sanctions,insufficient information disclosure,and lack of supervision and restriction.The third part mainly combines the pain points and problems of securities administrative reconciliation in the process of operation in China,and absorbs the mature experience of the system in the United States and Chinese Hong Kong.In the fourth part,suggestions are put forward to activate the efficient operation of China’s securities administrative reconciliation system,mainly from the aspects of relaxing the applicable conditions,strengthening the connection with first compensation and securities civil litigation,diverting from criminal sanctions,expanding the disclosure of reconciliation information,and strengthening supervision and restriction.