Category: Money Tips Date: 2006-04-17
Editor's Note
In 2005, the "Securities Investor Protection Fund Management method,". September 29, the China Securities Investor Protection Fund Co., Ltd. officially opened. A lot of attention of the Securities Investors Protection Fund has finally surfaced. Investor Protection Fund put into service, how will investors benefit? We invited professional analysts.
At present the main issues brokerage relief
"Securities Investors Protection Fund Regulations" for the purposes, so that in the liquidation of securities brokerage accounts at the interests of investors, to a certain degree of protection. "Securities Investors Protection Fund Regulations," Article XVII provides: "Funds were used for: ... ... Security companies have been revoked, the Commission closing and bankruptcy or administrative receivership, trusteeship management and other mandatory regulatory measures, in accordance with relevant state policy requires that creditors be paid. "of its Article VII provides:" The Fund's responsibilities are: ... ... Security companies have been revoked, the Commission closing and bankruptcy or administrative receivership, trusteeship management and other mandatory regulatory measures, in accordance with relevant state policy provides for creditors to be paid. " Thus, was established in September 29, 2005 of the China Securities Investor Protection Fund, a limited liability company, through the allocation of emergency assistance payments, both to fulfill their duties, also played a Fund.
Investor Protection Fund, how much money
Securities Investor Protection Fund, the size of the veil, not yet fully aside the. According to the latest report, as of the end of 2005, the Securities Investor Protection Fund, the size of total of 680 million yuan, including the Ministry of Finance allocated 6.3 billion one-time registered capital, as well as the People's Bank provided 61.7 billion line of credit. "Securities Investors Protection Fund Regulations," Article XIII: "fund was established, the Ministry of Finance over the years stored in a special account to subscribe for new shares carry the balance of the freezing of funds, one-time classified, as the fund company's registered capital; People's Bank of arrangements issuing special refinancing, advance funds initial capital. special re-lending the balance of the maximum amount approved by the State Department prevail. "estimates that 6.3 billion could be saved over the years the Ministry of Finance special account to subscribe for new shares carry the balance of the freezing of funds. 61.7 billion loan, whether it has reached the maximum amount approved by the State Council, no way of knowing.
Click "Securities Investors Protection Fund Regulations," provides, according to the actual situation of our country and drawing on international practice, China's Securities Investor Protection Fund, according to the "taking from the market, should be used on the market" the principle of raising. Its source mainly in the following areas: (1) Shanghai and Shenzhen Stock Exchange, respectively, in the Risk Fund under the cap, the transaction handling fee of 20% into the fund; (2) The registered domestic securities companies, their operating income 0.5 % ~ 5% have contributed funds; (3) issuance of stock, convertible bonds and other securities, purchase the freezing of funds, interest income; (4) according to the responsible party recovery proceeds and from the bankruptcy liquidation, repayment of the securities income; (5 ) domestic and foreign agencies, organizations and individuals to donate; (6) other legitimate income.
"Securities Investors Protection Fund Regulations," Article XIV also provides that: "If necessary, the approval by the State Council, the fund companies through the issuance of bonds, etc. to obtain special financing."
From the foregoing perspective, the PBOC issued a special re-lending arrangement, only a transitional measure. "Securities Investors Protection Fund Regulations" is July 1, 2005, put into effect. Since coming into force, a market does not re-issue shares, convertible bonds. Therefore, there is no formation of the freezing of funds purchase interest income. Other sources are persistent.
The size of the net assets of the Fund close to the scale of brokerage
Issuance of the China Securities Investor Protection Fund, can enhance the confidence of investors in securities. Reports from the current view, the scale of the Securities Investor Protection Fund, and the end of 2004 all of the net assets of 69.946 billion yuan brokerage size, relatively close. Thus, under normal circumstances, securities companies have been revoked, the Commission closing and bankruptcy or administrative receivership, trusteeship business, after the mandatory regulatory measures to address the aftermath of portfolio investors, there are more abundant funds. This can be a greater extent, solve the brokerage business due to poor investor worries caused.
Issuance of the China Securities Investor Protection Fund, you can strengthen the routine supervision of securities companies. In the past, securities companies have been revoked, China Securities Regulatory Commission shut down and bankruptcy or administrative receivership, trusteeship management and other mandatory regulatory measures are often more cautious. Among them, a very important reason is that being misappropriated client funds, lack of reimbursement mechanism. "Securities Investors Protection Fund Regulations," for the purposes, the China Securities Investor Protection Fund, set up a limited liability company and changed this pattern. This is also since 2005, securities companies have been revoked, China Securities Regulatory Commission shut down and bankruptcy or administrative receivership, trusteeship management mandatory regulatory measures such as the increase in cases of obvious reasons. With the securities firm in 2006 to further strengthen risk control, it is estimated there will be some securities companies to enter liquidation proceedings. In response, the China Securities Investor Protection Fund, there will be a new useless.
Investors will receive a limited compensation
According to "management approach", only when the securities firm is revoked, the Commission closing and bankruptcy or administrative receivership, trusteeship business regulatory measures such as mandatory only when the reimbursement may be involved.
At present, the "problem broker" misappropriation of client margin loss caused by investors generally able to receive full compensation, an individual's legitimate claims will have a choice limited access to payment, that is, September 30, 2004 the following took place 100 thousand yuan , the full payment, part of more than 10 million yuan, according to 9 off the price paid. However, for institutional investors, the legal claims, regardless of the three above-mentioned policies and regulations, or the "Management Measures" are not made to the relevant provisions, but also for September 30, 2004 occurred after the individual to decide whether or not claims for compensation and how it compensation.
Investment losses are not the scope of compensation
At this point, still have to once again remind the majority of investors, "Management Measures" after the introduction, is still not all of the securities investment activities generated losses can be compensated. "Management Measures" second paragraph of Article IV explicitly states that "investors in the securities investment activities due to stock market fluctuations and investment products caused by changes in the value of their losses borne by investors," so, investors do not thought that, with "management approach" This Road "protection", since you can sit back and relax. In fact, the funds can be the subject of compensation and scope of the current situation is still quite narrow, such as the stock market due to civil compensation arising from false statements is not beyond the scope of the Fund for compensation, investors will only receive compensation through the civil litigation process.
Fund plans to expand
The China Securities Investor Protection Fund is not primarily to add value through the use of funds, but by raising to increase their size. "Securities Investors Protection Fund Regulations" Diershitiao states: "The Fund's use of funds be limited to bank deposits, purchase of treasury bonds, central bank bonds (including central bank bills) and the central level financial institutions, issuance of financial bonds and other funds approved by the State Council, the use of form. "Thus, after deducting the costs of daily operations, the value range will be smaller. As the main channel for funds, with the 2006 recovery stocks, convertible bonds, the China Securities Investor Protection Fund, the scale should be more substantial growth. This is standard operation of the market, are all positive.
To pay a high percentage of high-risk brokerage
The China Securities Investor Protection Fund raising, brokerage in terms of higher risk, but also a test. "Securities Investors Protection Fund Regulations," Article XII states: "the management, operation level of poor, high-risk securities firms, it should be paid according to a higher proportion of the fund." The more high-risk securities firms, the more you want to extract to pay a high proportion of the fund, the more amount to the negative effects of performance. How to avoid this risk, these companies will become a new topic.
