Research On The Influence Of Representative Litigation System On Intermediary Institutions

The cases of false statement occur frequently in China’s securities market.The main reasons for this phenomenon are the lack of legal remedies and the intermediary agencies’ not fulfilling their duties.Since 2020,China’s securities market has ushered in the reform of registration system,and regulatory agencies have also ushered in the functional transformation.How to overcome the traditional malady of false statement has become an urgent problem to be solved.With the enactment and implementation of the new securities law,representative litigation system has entered the field of securities,bringing two new research directions: one is the impact of representative litigation system on false statement cases,and the other is the impact of representative litigation system on intermediary institutions.This thesis combed the evolution,functions and problems of our country representative lawsuit system,with WUYANG debt default case as an example,analyzes the applicable methods and features of representative lawsuit system,WUYANG debt case facts,the focus of dispute,the court ruled,as well as the specific data of China’s securities misrepresentation cases,found such cases dropped ratio,low successful ratio,the protection of investors was relatively low,and the intermediaries involved were not held responsible.However,the WUYANG debt case,which applied the representative lawsuit system,changed the situation by reconstructing the liability boundary of intermediaries,and four conclusions were drawn.First,the representative lawsuit system increased the illegal cost of intermediaries;Second,the system improves the accountability efficiency of intermediary agencies;Thirdly,the system expands the responsibility boundary of intermediary agencies;Fourth,the system has released the signal of strong supervision over intermediary agencies.Based on the causes of the problem and the results of the research,this thesis puts forward six suggestions: first,promote the judicial practice of the special representative litigation system;Secondly,the responsibility boundary of each intermediary agency should be fully clarified and the role orientation of intermediary agency should be determined.Third,to explore the small team of accounting firms and law firms from the firm moderate way;Fourthly,improve the incentive mechanism of representative litigation system;Fifth,improve the construction of reputation control mechanism of intermediary institutions;Sixth,explore multi-channel solutions.