Research On The Advance Compensation System Of Securities Market

Due to the drawbacks,long-time and low compensation ratio,of civil compensation measure of securities market,investors cannot get compensated in time.As a result,the advance compensation system,which is a major innovation in the investor protection mechanism,has emerged for the purpose of making up for a loss swiftly and efficiently.As the advance compensation system has got a better compensation result in practice,it was established at the legal level.However,the key elements of the system,such as compensation procedures and incentive mechanism,have not been clarified at the legal level,and the meaning of the system cuts no ice due to the poor specification.Therefore,only by scientifically designing the rules for the implementation can the advance compensation system exert its institutional function of safeguarding investors’ rights and interests,and thereby build a stable and efficient securities market.The system aims to protect the rights and interests of small and medium-sized investors,and the concept of protection of the weak also runs through the whole process of its application.It combs the context about the generation and development of the advance compensation system to recognize the effect of practical application which is conducive to promoting the stable development of the securities market and forcing practitioners to improve their business ability and reputation.Basically,the relevant features of the advance compensation system are concluded,through analyzing the content of institutional norms,and thus the essence of the advance compensation system is clarified as a settlement agreement.Besides,the existing domestic compensation cases are analyzed to sort out the operation mechanism of the advance compensation system and thus the applicable features of the system,such as high efficiency of compensation and low recovery rate,are summarized.It is clarified that the advance compensation system has problems such as narrow scope of compensation subjects,no distinction between types of compensation targets,unfair procedure of compensation plan formulation,lack of supporting incentive mechanism,insufficient enforcement of compensation agreements,and incomplete protection mechanism of recovery rights.All of these problems have a negative impact on the application of advance compensation.Based on the analysis of the causes of the above problems,this paper puts forward corresponding suggestions for the improvement of the system.In the future,the scope of payout subjects can be expanded,and the joint payout of multiple subjects is encouraged,and the mode of "voluntary payout" + "statutory payout" is adopted,and the types of payout subjects should be distinguished according to different payout modes;in terms of payout procedures,the public participation in advance payout should be improved;in terms of institutional incentives,the public participation in advance payout should be improved.In terms of system incentive,we can promote the combination of the commitment system of securities enforcement parties and the early payment system,and incorporate the payment agreement into the commitment agreement;in terms of recovery rights,we can protect the right to compensation from "giving the legal agency of the subject of compensation" and "applying the principle of priority of civil liability In terms of the right of recovery,the right of recovery can be guaranteed from two dimensions,namely," giving legal representation to the subject of compensation " and " applying the principle of priority of civil liability.