| Summary: | 碩士 === 東吳大學 === 法律學系 === 93 === Existing protection provided by the securities and futures market for investors is insufficient to eliminate misappropriation perpetrated by securities or futures brokers, as well as the risks of brokers that are unable to fulfill their contractual obligations to investors in case of financial difficulty. Thus, in order to protect investor rights and promote investor confidence in the market, it is necessary to legislate related organizations to advance funds to ensure that securities or futures brokers have the ability to meet their obligations. Taiwan utilizes such a system, which fills the gap in the protection of investors in market trading.
The investor compensation system, when applied along with liquidation funds and bankruptcy proceedings, may have compatibility issues. As for the contribution and advancement of the investor protection fund, the Securities and Futures Investors Protection Act affords special duties available in public laws to related securities and futures agencies. The compensation scheme of the investor protection fund serves the public interest and policy purpose. Moreover, the fund enjoys quasi-administrative status, and related disputes should be resolved through administrative measures.
Both the investor protection fund and deposit insurance system are mechanisms that undertake policy risks, with risk-control and moral risk being important aspects. Under the current system, the investor protection fund may increase the communication and coordination of related securities and futures agencies, in order to improve overall risk control. The government may mandate the contribution percentage contributed by different securities or futures firms to the protection fund, as well as the upper limit of compensation in any given incident to manage moral risk. In the long term, a system of risk awareness should be established among investors to strengthen the market mechanism.
This paper is divided into five chapters. Using Taiwan’s investor protection fund compensation system as the research core, the paper compares legislative examples of other countries and critiques Taiwan’s system. The topics of each chapter are as follows:
Chapter 1: Describes the research motive, purpose, area, and methods.
Chapter 2: From the viewpoint of comparative law, introduces different investor protection funds in other countries, especially the United States Securities Investor Protection Corporation.
Chapter 3: Introduces the origin and development of Taiwan’s investor protection fund; discusses regulations, related administrative orders, operating rules, and their operation; discusses Taiwan’s compensation system, comparing it with the U.S. system, their differences and similarities, as well as strengths and weaknesses.
Chapter 4: Evaluates systematically, starting with discussion on the function and status of the compensation system from its structure, then explains the applicability of the investor protection compensation system and other related systems, then evaluates the contribution, donation, and compensation nature of the investor protection fund, comparing it with the deposit insurance system.
Chapter 5: Summarizes the findings and suggestions.
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