How do fund investors protect their own interests

How do fund investors protect their own interests

How to protect the interests of small and medium investors has always been a hot topic in the securities market in recent years. Recently, Tu Guangshao, Secretary-General of China Securities Regulatory Commission, pointed out that besides legal protection and administrative supervision, establishing self-discipline protection and compensation mechanism is an important means to protect investors' rights and interests. He also proposed that the establishment of an investor rights protection fund will be studied as soon as possible. This shows that with the continuous development of China's capital market, it is just around the corner for all parties in the market to establish a relatively perfect investor rights protection mechanism.

In the past two years, with the stock market downturn, fund industry scandals frequently occur, full of loopholes. Since then, individual fund managers have been forced to leave classes because of the "rat warehouse" scandal; Individual bond funds "hold bonds on their behalf", performance fraud, interest transfer and other events; Coupled with the large-scale losses of stock funds, money market funds suffered collective redemption, and the majority of the people earned less and lost more, which made the fund industry encounter an unprecedented crisis of trust.

How to protect the fundamental interests of fund investors and restore investors' confidence has once again become a fundamental problem that must be solved in the development of China's fund industry.

Justice will never be self-fulfilling. On the one hand, the protection of investors' rights and interests depends on the strengthening of supervision and law enforcement by the regulatory authorities; On the other hand, investors also need to protect their rights and interests consciously, actively and actively.

The newly revised Fund Law gives fund investors a variety of ways to safeguard their rights. The fund share holders' meeting is the highest authority of the fund. According to the fund contract, the fund share holders' meeting may set up a daily organization to convene the holders' meeting. Fund share holders representing more than 10% of the fund share request a fund share holders' meeting on the same matter. If it is believed that the fund manager and custodian have serious violations of laws and regulations or serious dereliction of duty, the fund investor may replace them by holding a resolution of the holders' meeting.

At the same time, the new Fund Law makes full use of various administrative licenses, administrative guidance, administrative investigations, administrative compulsory measures and administrative penalties, which strengthens administrative supervision and aggravates administrative penalties for illegal acts. Investors can make full use of the right to report and complain given by law, and report the illegal and infringing acts of fund managers, fund custodians and other subjects to the competent authorities such as fund industry associations, so as to solve them reasonably.

After all, administrative supervision resources are limited, and it is impossible and should not be comprehensive. The protection of investors' rights and interests should first be through market means, self-negotiation, or requesting the assistance of industry self-regulatory organizations or effective law enforcement by regulatory authorities. However, when the above-mentioned methods can't completely make up for investors' economic losses, investors can consider claiming their rights and interests through judicial procedures. If there are problems in fund sales, such as insufficient notification, illegal prediction, and capital preservation commitment. , investors can claim that there is fraud or major misunderstanding of the fund sales staff and request to change or cancel the contract; If the fund manager commits serious dereliction of duty or maliciously infringes on the fund property during the investor's holding of the fund, the holder may claim the fund manager's breach of contract or directly sue the fund manager for infringement.

What investors need to pay special attention to is that compared with other means of safeguarding rights, the litigation cost of judicial channels such as manpower, time and money is higher, and sometimes the same or class action is needed. If possible, it is best to use the game wisdom of lawyers from both sides and the mediation mechanism of the court to achieve the goal of substantive rights protection through reconciliation as much as possible. In addition, investors can objectively reflect their interests to professional financial media with influence and credibility, and seek the support and attention of public opinion resources. Investors can also consider using social networking platforms such as Weibo and WeChat to have an open dialogue with fund managers. Sunlight is the best insecticide!

In China's Securities Law, Company Law, Guidelines for the Articles of Association of Listed Companies and other laws and regulations, it is clearly stipulated that the company manager who causes damage to the company due to illegal acts should bear corresponding responsibilities. However, after the first case of small and medium investors suing Hong Guang Company in the securities market was rejected by the court, some professionals think that this result may be related to the inadequate preparation of the judicial organs to some extent. Therefore, in addition to legal protection, it has become the consensus of all parties to establish relevant supporting mechanisms with strong operability as soon as possible to effectively protect the interests of investors.