Two Sessions Capital Market "Keywords" Foresight: On Behalf Of Members Of The Multi-Dimensional Hot Investor Protection

On the eve of the two sessions, representatives of the bills and members' proposals were also released.

In twenty-first Century, comers and interviews with economic news reporters found that investor protection has become the focus of attention of Representatives and members.

As a matter of fact, investor protection has attracted more and more attention in the wake of the "financial fraud" of Rui Xing coffee.

In addition, with the new Securities Act coming into force in March 1st and the three mention of capital market fraud and investor protection in the month of the financial stability and Development Commission of the State Council, the discussion on investor protection has risen to a new high.

On the eve of the two sessions, the heavy paper "opinions on speeding up the improvement of the socialist market economic system in the new era" were released. It was also clear that we should improve the mandatory delisting and the initiative to withdraw the market system, improve the quality of listed companies and strengthen investor protection.

"The content of investor protection has reached a consensus at all levels this year. And Rui Xing coffee incident and the Bank of China's crude oil treasure incident added a fire to the discussion of investor protection. Under such circumstances, the relevant members of the NPC and CPPCC raised the issue of investor protection at the right time. A partner of Zhong Lun law firm told reporters.

Improving the punishment standard of criminal law

On the eve of the two sessions, the SFC clarified the penalties for Kangmei pharmaceutical fraud, and the top penalty was 600 thousand. The SFC also said that Kang Mei pharmaceutical and related personnel were suspected of committing crimes to judicial organs. Therefore, the market also hopes that the criminal law can punish the counterfeiters.

However, according to the provisions of the 160th, 180th and 182nd articles of the criminal law, the crime of fraudulent issuance of stocks and bonds, regardless of the amount of the crime, is punishable by five years' imprisonment. For the crime of insider trading, the disclosure of insider information and the manipulation of securities and Futures markets, even if the circumstances are especially serious, the maximum penalty is only ten years. He will be sentenced to fixed-term imprisonment.

It is generally believed that after the revision of the securities law, the criminal law should also update the related crimes of securities.

One of the motions brought forward by Zhu Lieyu, director of the National People's Congress and director of the Guangdong Guo Ding law firm, this year's two sessions is to propose amendments to the People's Republic of China criminal law and to measure the three crimes of Securities for five years. It is changed to more than ten years. 。

"The securities market is highly risky and high profit and loss". Under the temptation of huge profits, crimes such as fraudulent issuance and other securities crimes have been repeatedly banned, which has destroyed the market ecosystem. In this regard, we must protect the legitimate rights and interests of investors with heavy punishment, and the amendment of the criminal law should also keep pace with it. The former partner of Zhong Lun law firm said.

In his motion, Zhu Lieyu proposed that further improving the financial legal system, amending the criminal law, safeguarding the national financial management system, and comprehensively raising the cost of illegal and illegal securities are one of the objectives of the reform of the capital market. The new Securities Act, implemented in March 1st, has greatly improved the administrative responsibility for fraudulent issuance, manipulation of stock market and insider trading from multiple, proportions and amounts.

However, the provisions of the current criminal law can not fully reflect the social harmfulness of the crime of securities, the insufficient intensity of criminal punishment, nor the matching of the administrative penalties stipulated in the securities law, which restricts the marketization reform of the stock issuing system and the long-term, stable and healthy development of the capital market.

Zhu Lieyu also suggested that everyone should be equal before the law and should not severely punish grass-roots crime. If the ordinary theft and fraud are covered with the coat of the three crime of securities, the result of the penalty can be obtained, and the equality and impartiality of the law will be seriously damaged. Therefore, it is proposed to amend the criminal law and change the sentencing of securities three crimes from five years to less than ten years, so as to raise the criminal cost of securities offenders and further control the chaos in the securities market, so as to give full play to the adjustment function of legal norms.

Activating class action as soon as possible

One of the highlights of the revision of the new securities law is the further introduction and introduction of the representative litigation system in the protection of securities rights, which is also considered as an attempt of the Chinese version of the class action system.

However, the implementation of the upper law does not mean that the "class action" can be directly landed, because the ninety-fifth section of the new securities law provides only the principle provisions for the civil litigation system of securities, which is the starting point rather than the end point of the current civil Securities Litigation Reform.

The follow-up reform depends on the continuous promotion of the relevant regulations, judicial interpretations and enforcement rules by the SFC, the Supreme People's court and the investor protection agency. At the same time, in view of the difficulty and innovation of the reform, the relevant departments may choose specific cases and some courts will conduct pilot projects in advance. In practice, we should continue to refine, adjust and improve. This will be a necessary stage for Chinese characteristic class action system to take root and establish a stable future.

So when can class action be applied in practice so that investors can use these legal weapons to defend their rights?

The National People's Congress, Li Bingheng, Secretary of the Hubei Securities Regulatory Commission and the Secretary of the CPC Central Committee, proposed a motion to "activate" securities class action as soon as possible.

He pointed out that since the implementation of the new securities law, the concrete implementation of class action is still in the exploratory stage. It is suggested that judicial interpretations should be issued as soon as possible, so as to refine the key links in the litigation of securities representatives and transform the litigation system from "standing up" to "using up".

Product appropriateness management

Investor protection refers not only to investors who buy stocks, but also to investors who buy financial products. In recent days, the investor protection issue of the Bank of China has also been placed under the spotlight.

Among the CPPCC members, the Central Committee of the Central Committee of the league and the general manager of the Schroder bank fund, Xie Wei, one of the proposals is about the proper management of financial products sales.

    Xie Wei believes that the recent judicial practice for the tilt protection of financial consumers' rights presents a phenomenon of "heavy protection, weak education and light classification". The judicial adjudication has changed to the total loss / no loss polarization. The middle definition requires the financial institutions to have fully fulfilled their obligations from investors. The unreasonable expectations of investors and conflicts with the direction of prohibiting commitments will also lead to some problems that need to be solved.

"We can see that the standard of judicial adjudication has shifted significantly to the standard of" total compensation / no compensation ". Although this summary does not have legal effect, it can serve as a reference for case trials. If investors lose money, they have to go to the self certification process to fulfill their obligations. First, the efficiency of finance will be greatly reduced; second, it is not conducive to net value management and breaking the rigid exchange, because it may give investors the wrong expectation of full loss of investment losses. Xie Wei said.

As to how to improve the management of sales appropriateness, Xie Wei made three suggestions: first, we should balance the relationship between maintaining financial stability and financial transactions, properly handle the relationship between "steady" and "entering", further deepen financial reform and opening up, and achieve financial stability and development; secondly, we should unify the standard of operation of investors for all kinds of financial products. It is suggested that we should speed up the study and establish the appropriateness standard applicable to all kinds of financial products. Finally, we should make clear the direction of development and deepen the depth and breadth of investor education, including the suggestion that we should raise investor education to the strategic height of national financial development and formulate medium and long-term development planning of investor education.