Study On The Improvement Of Special Representative Action System From The Perspective Of Investor Protection

The capital market ecosystem is comprised of investors,who are the most fundamental components and one of the most vital elements of life,and in recent years,the securities market has seen a swift expansion,with investment market space now surpassing billions of dollars.The securities market’s stability and health can be bolstered by the safeguarding of investors.The reform of registration system,with its continual progress,has enabled the market mechanism to supplant administrative examination and approval in its role,making it more critical to avert securities infringement disputes.Group securities disputes are characterized by a large number of investors,wide distribution,complex and changeable cases,and long periodicity,which makes individual investors lack enough professional knowledge and enough motivation to file civil lawsuits.Therefore,the investment risk of Chinese securities market and the civil rights of investors are not well protected fora long time.In order to provide fair legal protection and timely and effective legal remedies to investors,our country has been actively exploring and perfecting various securities litigation modes which meet the market demand.Legislation has long barred the representative action system from securities infringement,despite its long-standing presence in the legal arena.The traditional litigation mode’s shackles remain unyielding,and the model judgment mechanism persists in its "one to one" litigation structure.The collective action’s inability to stimulate investor litigation,solve the issues of complex litigation,high litigation cost,and inadequate motivation of investors,renders it ineffective.The Securities Law’s newly amended Article 95(3)of 2020 has,for the first time,innovatively established the litigation system of special securities representative in securities litigation.Insurance institutions may be granted special authorization by investors to act as special representatives of securities,allowing them to file lawsuits.This concept of "implied accession and express withdrawal" means that those investors who do not explicitly withdraw from the securities litigation within the specified period are included in the proceedings.This can lead to a considerable decrease in litigation costs,a balanced litigation strength,and a heightened market deterrence,all while providing exclusive institutional advantages for securities security.However,the system of special representative action in securities has not been established for a long time in judicial practice,so there are still many further development and improvement in this system,both in theoretical research and judicial practice.Drawing from the experience and lessons of the securities group dispute settlement system in the main legal regions,this paper offers insight into investor protection.Proposing improvements to the existing standard system of special representative action,as well as addressing the difficulties in judicial implementation,is what this proposal does.This paper is broken into five sections.Investor protection theory’s correlation to multi-level capital markets is explored in the initial chapter,providing evidence from the investor protection viewpoint.From an investor reporting point of view,The necessity of selecting special representative action means in securities governance is clear,and the importance of establishing a special representative action system to protect investors’ rights and interests is made evident in our nation.The second chapter delves into the special representative litigation system,which is based on the notion of a representative litigation system.We shall elucidate the categorization of the preeminent type of representative litiga.and incomplete notification mode-all these are examples.Secondly,it analyzes the unclear rights and responsibilities of the special representative litigation subject and the role positioning of lawyers.Finally,the supervision mechanism of the special representative action system and the inadequate provisions of the mediation procedure at the present stage are further explored.Our country’s mirror was discovered through the fourth chapter,which explored the experience of the special representative action system in major legal regions.In the fifth chapter,based on the summation of the preceding four chapters,proposals are made to enhance the special representative litigation system,namely,elucidating the current case selection criteria.Enhancing the regulations of "general" to "special",refining the method of notification and announcement,and elucidating the litigation rights and obligations of the investment service center-these are all steps to be taken.Enhancing the part and placement of attorneys in litigation,elucidating.