Research On The System Of Advance Compensation In The Securities Market

Investors are the foundation of the development of the securities market,however,for a long time,investor protection has not been paid due attention,especially in the securities civil compensation litigation,the way for investors to protect their rights is difficult.In 2013,the first compensation rule was first applied in the Wanfushengke case and provided a new idea for the securities civil compensation system.After that,the advance compensation rule played an important role in the Hailianxun case and Xintai Electric case and achieved good social results.Article 93 of the new Securities Law of 2020 officially determines the advance compensation system of China’s securities market,enriches the securities civil compensation system of China from the institutional level,and not only meets the needs of investor protection,but also plays a vital role in strengthening the information disclosure of the securities market and improving the development level of the securities market.It has been nine years since the first practice of Wanfu Shengke case,However,according to the official website of China Securities Investor Protection Fund Corporation Limited(as of March 2022),in only three cases,the advance compensation completed the civil compensation to investors.The deep reasons for this phenomenon are worth pondering.Based on judicial practice,this paper tries to explore the reasons for the difficult promotion of the first compensation system in the securities market through combing relevant cases,and puts forward its own opinions on improving the first compensation system in the securities market.This paper first takes the basic theory as the breakthrough point to the securities market first compensation preliminary introduction,after the empirical case combing the problems existing in the current securities market first compensation system: compensation subject scope is too narrow,the sponsor responsibility,compensation object defined fuzzy,compensation agreement program fairness and authority,first compensation right to carry out the difficulties,etc.For the existing problems existing in these practices,targeted opinions are put forward.First of all,expand the scope of the subject of advance compensation,and encourage the persons responsible for false statements to actively participate in the securities market in advance compensation.Secondly,expand the source of the advance compensation fund,for which we can learn from the relevant investor protection system outside the region,and establish the investor compensation fund system in China.Make a reasonable advance compensation agreement again.Listen to the opinions of all parties,improve the fairness and authority of the compensation agreement,and fully realize the function of the compensation system.Finally,the enforcement force of the advance compensation agreement is given to ensure the realization of the right of the advance compensation.