The Positioning and Reform of Insurance Institutions in Securities Group Litigation

Abstract

The resolution of securities group disputes is a common problem faced by all securities markets in the world. Article 95 (3) of the new Securities Law provides a Chinese version of the solution to this problem. As a natural spokesperson for the interests of small and medium-sized investors, investor protection institutions are at the core of securities group litigation. In order to truly activate this system, we should do a good job in the top-level design of the rule system, clarify the substantive conditions and corresponding procedures for the initiation of litigation, accept cases with both group and public welfare, establish an efficient supervision mechanism for group members by establishing a representative committee of group members, and further reform the investor protection institutions, and open up the competition of investor protection institutions to better meet the actual needs.