Research On The Legal Issues Of Advance Compensation In The Securities Market

The securities Law amended in 2019 summarized scattered investor protection provisions into a unified special chapter,and included advance compensation arising from practice,which promoted investor protection in China’s securities market,which is a great thing for investors in a vulnerable position.Although the "securities law" will advance payments into larger positive significance of the law,but under the current legal system,the first compensation system still face the shortage of laws that are ambiguous and practice application of the dual dilemma.In the current legal provisions,advance payment is only a brief principle provision,vague provisions on the application of advance payment,subject and object,and can not give guidance to the application of advance payment and investor protection;In practice,due to the lack of specific operating rules and practical guidance cases,advance payment is faced with practical problems such as insufficient investor participation,improper payment standards and capital sources.These two dilemmas not only fundamentally restrict the extensive application of advance payment,but also make it worse for the weak position of investors,so it is particularly important to re-discuss the advance payment in this case.Based on the difficulties of advance payment,combined with the multiple settlement mechanism of securities and futures disputes and the Fair fund system of the United States,this paper proposes that the implementation rules of advance payment should be improved,the advance payment should be connected with the multiple settlement mechanism of disputes,and the judicial confirmation system of advance payment agreement should be established.In order to make a contribution to the improvement of the advance payment and improve the investor protection in China’s securities market,we should combine the advance payment with demonstration lawsuit,broaden the source of the advance payment fund,and implement the bottom protection mechanism of the investor protection agency.