The Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the China Securities Regulatory Commission recently issued the "Opinions on Several Issues Concerning the Handling of Cases of Securities and Futures Violations and Crimes" to investigate and deal with cases of financial fraud, embezzlement of assets of listed companies, insider trading, market manipulation, and securities fraud in accordance with the law.
1. Strict supervision to protect market fairness
As an important part of the modern economic system, the healthy development of the securities market is inseparable from strict supervision. The four departments jointly issued a document clearly proposing a "zero tolerance" attitude towards illegal and criminal activities in securities and futures, which reflects the country's firm determination to maintain market order and protect the rights and interests of investors.
In the practice of supervision, we must adhere to the word "strict" and strictly investigate and deal with cases of financial fraud, embezzlement of assets of listed companies, insider trading, market manipulation, securities fraud, and other illegal and criminal cases. These behaviors not only harm the interests of investors, but also undermine the level playing field in the market. By intensifying investigation and punishment, strictly controlling the application of suspended sentences, and increasing the application and enforcement of property penalties, we can effectively curb the spread of these illegal and criminal acts and maintain the fairness and justice of the market.
Second, the power of the rule of law to build a line of defense
The rule of law is the fundamental guarantee for the healthy development of the market. The joint issuance of the document by the four departments not only reflects the severe crackdown on illegal and criminal activities in securities and futures, but also demonstrates the important role of the spirit of the rule of law in financial supervision.
In the process of enforcing the law, we must adhere to the administration according to law and ensure that every punishment has a clear legal basis. At the same time, we should also strengthen the connection between administrative law enforcement and criminal justice to form a joint work force. When securities and futures regulators discover cases of suspected crimes, they shall promptly transfer them to the public security organs; After receiving a transferred case, the public security organs should promptly file and investigate the case to ensure that the case is handled in a timely manner. This kind of close coordination mechanism can greatly improve the efficiency of cracking down on securities and futures crimes.
3. The wisdom of synergy and the cohesion of governance
In the process of cracking down on securities and futures crimes, coordination and cooperation between the people's courts, people's procuratorates, public security organs and securities and futures regulators are crucial. We must strengthen communication and coordination between departments to form a joint work force.
Specifically, we need to establish an information sharing mechanism to ensure that relevant information can be obtained in a timely manner between departments; We also need to strengthen personnel training and technical support to improve the professionalism and ability of law enforcement personnel; In addition, we need to strengthen international cooperation and exchanges to jointly crack down on cross-border securities and futures crimes. Through the implementation of these measures, we can gather a strong governance synergy and provide a strong guarantee for the healthy development of the securities market.
Fourth, the combination of leniency and severity shows the judicial temperature
In the process of cracking down on securities and futures crimes, we must adhere to the criminal policy of blending leniency and severity. For criminal suspects or defendants who actively cooperate with the investigation, truthfully confess the facts of the crime, voluntarily return stolen goods and make restitution, and sincerely admit guilt and repentance, we must give lenient punishments in accordance with law; Where the scope and conditions for leniency for those who admit guilt and accept punishment are met, we must handle it in accordance with the provisions of the Criminal Procedure Law.
At the same time, we must also strictly grasp the scale of blending leniency with severity, and we must severely punish criminal suspects or defendants who have heinous circumstances such as not truthfully confessing crimes or obstructing case-handling work in various ways. This kind of criminal policy, which blends leniency and severity, can not only reflect the fairness and warmth of the judiciary, but also effectively deter lawbreakers and criminals and maintain the stability and prosperity of the market.
Fifth, prevention first, build a strong line of defense against risks
While cracking down on securities and futures crimes, we should also pay attention to the importance of prevention. By strengthening investor education, improving market transparency, and improving the regulatory system, we can effectively reduce the risk of securities and futures violations and crimes, and provide a strong guarantee for the healthy development of the market.
Specifically, we can strengthen investor education to improve investors' risk awareness and self-protection capabilities; strengthen the construction of information disclosure system and improve the transparency of the market; Improve the regulatory system, strengthen supervision, and promptly discover and deal with violations of laws and regulations. The implementation of these preventive measures can build a strong line of defense against risks and provide a solid guarantee for the healthy development of the market.
VI. Looking to the future, jointly draw a blueprint for the rule of law
With the continuous development and innovation of the financial market, the supervision of the securities and futures market will also face new challenges and opportunities. We should take the joint document of the four departments as an opportunity to further strengthen supervision and improve the level of supervision, so as to provide a strong guarantee for the healthy development of the market.
Looking forward to the future, we must continue to adhere to the principle of supervision according to law, constantly improve the regulatory system, strengthen supervision, and ensure fair competition in the market and the legitimate rights and interests of investors. At the same time, we should also strengthen international cooperation and exchanges, jointly crack down on cross-border securities and futures crimes, and contribute to the stability and development of the global financial market.
【Document Introduction】
The Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the China Securities Regulatory Commission recently issued the "Opinions on Several Issues Concerning the Handling of Cases of Securities and Futures Violations and Crimes" to investigate and deal with cases of financial fraud, embezzlement of assets of listed companies, insider trading, market manipulation, and securities fraud in accordance with the law.
The "Opinions" call for adhering to zero tolerance and strictly cracking down on illegal and criminal activities in securities and futures in accordance with the law. Increase the force of investigation and punishment, persist in moving everything that should be removed, arresting when arrested, and prosecuting when it is prosecuted, strictly controlling the application of suspended sentences, increasing the force of application and enforcement of property punishments, maximizing the recovery of stolen goods and losses, and improving the system of full-chain crackdown and all-round accountability. Correctly implement the criminal policy of blending leniency with severity, adhere to the main tone of "strictness", lawfully determine leniency circumstances, and bring about the organic unity of political, legal, and social effects. The people's courts, people's procuratorates, public security organs, and securities and futures regulators should strengthen work coordination and form a joint work force.
The "Opinions" clarify the connection between administrative law enforcement and criminal justice, the jurisdiction of criminal cases, and the collection, review and use of evidence. If the securities and futures regulatory authority is required to discover a suspected crime and need to pursue criminal responsibility in accordance with the law, it shall promptly transfer it to the public security organ. If the public security organ finds that there are criminal facts that need to be investigated for criminal responsibility in a case transferred by the securities and futures regulatory authority, it shall promptly file the case. Where the public security organ decides not to file a case or withdraw the case, the people's procuratorate decides not to prosecute, or the people's court decides not guilty or exempts from criminal punishment, and there is evidence to prove the existence of securities and futures violations, and it is necessary to give administrative punishment, confiscation of illegal gains, market ban, etc., to the persons involved in the case in accordance with securities and futures laws and regulations, it shall submit an opinion within one month of making the decision or judgment, attach effective legal documents, evidentiary materials, and the basis for handling, and transfer it to the securities and futures regulatory authority for handling according to different circumstances.
In terms of jurisdiction, the intermediate people's court has jurisdiction over first-instance cases of securities and futures crimes, the people's procuratorate at the same level is responsible for initiating public prosecutions, and the public security organs at or above the prefectural (municipal) level are responsible for filing and investigating. The place where securities and futures crimes are committed includes the following circumstances: the place where the securities and futures account and margin account are opened; The place where the transaction declaration instruction is issued and the place where the transaction is matched into the place; the place where the transaction fund transfer instruction is issued; the location of the securities and futures trading venue and the location of the registration and clearing institution where the securities and futures varieties are listed; the place of sending and receiving trading orders and inside information; The place where the false information is compiled, the place where the documents are prepared and declared, and the place where the registration is reviewed, or where the concealment of information that is not disclosed in accordance with regulations occurs by concealing important facts or false issuance documents, financial accounting reports, and other information disclosure documents; the place where the proceeds of crime are actually obtained, hidden, transferred, used, or sold; The location where intermediary organizations that undertake the duties of asset appraisal, accounting, auditing, legal services, sponsorship, etc., provide intermediary services.
The "Opinions" emphasize that criminal suspects and defendants who have not truthfully confessed crimes or obstructed case-handling work in various ways, refused to return stolen money and goods, or used stolen money and goods for illegal activities, and made particularly huge illegal profits, and have repeatedly committed securities and futures violations and crimes, causing listed companies to be delisted, investors to suffer heavy losses, financial risks that may trigger financial risks, seriously endanger financial security, and other vile social impacts or serious harmful consequences, are generally not applicable. Exemption from criminal penalties and probation. In cases of financial fraud, embezzlement of assets of listed companies, insider trading, market manipulation and securities fraud, securities issuers, controlling shareholders, actual controllers, directors, supervisors, senior managers, financial practitioners, etc., who commit securities and futures violations and crimes, shall be severely punished in accordance with law. If a crime is constituted, criminal responsibility shall be pursued in accordance with law if the intermediary organizations and financial institutions that provide false supporting documents and financial bills for financial fraud, professional gangs that carry out cooperative acts such as capital allocation, trading and stock recommendation for the crime of insider trading and manipulation of the securities and futures market, and external personnel who collude with the listed company inside and outside the company to hollow out the company's assets, and constitute a crime.
Those who actively cooperate with the investigation, truthfully confess the facts of the crime, take the initiative to return stolen goods and make restitution, and sincerely admit guilt and repentance, may be given a lenient punishment in accordance with law; Where the scope and requirements for plea leniency are met, it is to be handled in accordance with the provisions of the Criminal Procedure Law. The standards for designation must not be lowered in accordance with law, such as voluntary surrender, meritorious service, accomplice, and other legally-prescribed lenient punishment circumstances. People's procuratorates and people's courts may submit a recommendation for a professional prohibition in accordance with law, and make a decision on a professional prohibition based on the circumstances of the criminal suspect's or defendant's crime and the need to prevent further crimes.
![Notice of the "Opinions on Several Issues Concerning the Handling of Cases of Securities and Futures Violations and Crimes".[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)