The whistleblower system, that is, the insider reporting system, is one of the important mechanisms to crack down on illegal activities in mature capital markets. The new Securities Law, implemented on March 1 2020, increased the reward system for reporting securities violations in China and raised the reward system to the legal level.
On April 2nd, 20021year, CSRC indicated that it planned to reward whistleblowers who violated laws and regulations, such as Sihuan Bio, Luke Equality, Tianbao Food Trust, Yao Ji Holding Trust, Dehua Hengyi Trust and Sendong Power Trust. On the same day, China Securities Investor Protection Fund Co., Ltd. issued an explanation on the reward process and application. This is the first batch of "whistleblowers" who have been rewarded in the capital market since the implementation of the new Securities Law.
Market participants believe that the "whistleblower" system will help reduce the cost of securities supervision and law enforcement and effectively crack down on illegal activities in the capital market. Encouraging insiders to report, reward and protection are two key points, and the construction of relevant protection system for informants can be further strengthened in the future.
The insider provides clues.
The highest reward is 600,000 yuan.
From the practical point of view, from 2065438 to August 2009, the CSRC rewarded the whistleblowers in three cases: Liao Yingqiang's market manipulation case, Yabaite's illegal case and Ren Zixing's illegal case. Market participants believe that the matching degree between the whistleblower's bonus and the risk brought by the report will directly affect the enthusiasm of the whistleblower. Historically, the amount of rewards for reporting securities violations in China has been increasing.
The establishment of the whistleblower system in China's capital market can be traced back to the Notice on Rewarding Securities and Futures Fraud and Illegal Securities and Futures Trading issued by China Securities Regulatory Commission 200 1. The "Notice" shows that the one-time bonus is not higher than 20,000 yuan for reports involving a large amount, a wide range of personnel or a great impact; Those who report important clues or make special contributions can be rewarded.
2065438+ In June, 2004, the CSRC issued the Interim Provisions on Reporting Illegal Acts of Securities and Futures, and rewarded general reports that meet the reward conditions with no more than 65438+10,000 yuan. If the report has a significant impact in the whole country or the amount of fine is extremely large, the reward amount is not subject to the above restrictions, but the maximum amount is not more than 300,000 yuan.
On June 5438+1October 65438+April 4, 2020, the CSRC issued the revised Interim Provisions on Reporting Violations of Securities and Futures (hereinafter referred to as the Interim Provisions), which added that "the insider provides clues about major illegal cases, and the maximum reward amount does not exceed 600,000 yuan after investigation."
According to the "Interim Provisions", the reward for reporting is limited to reporting five types of illegal acts with real names, that is, fraudulently issuing securities; Information disclosure is illegal; Manipulating the securities and futures markets; Insider trading or trading with undisclosed information; Other major securities and futures violations.
expert opinion/advice
Strengthen the construction of whistleblower protection system
From the perspective of the protection mechanism for informants, the Interim Provisions strengthen the confidentiality measures for reporting in many ways to prevent the disclosure of identity information of real-name informants.
"First of all, the CSRC Reporting Center implements coding management for the name (name), ID number, contact information, work unit, address and identity information of the network whistleblower, and uses coding in the stages of investigation, punishment and reporting reward evaluation. Secondly, if it is necessary to inquire about the identity information of informants due to investigation, punishment or reward for reporting, the registration procedures shall be fulfilled. In addition, the Interim Provisions also clarify the system that staff responsible for handling reports and other relevant personnel should strictly abide by. " Zhu explained.
The "Interim Provisions" make it clear that the reported person shall not take revenge on the informer. That is, "the reporter shall not take violence, coercion, slander, disclosure of personal privacy or other illegal means to retaliate against the reporter. The whistleblower shall not take revenge on the whistleblower within the unit by dissolving or changing the labor contract or by other means. In violation of the provisions, in accordance with the relevant provisions; If it is suspected of constituting a crime, it shall be transferred to judicial organs for criminal responsibility according to law. "
To further improve the whistleblower system in China's capital market, Tang Xin believes that, on the one hand, it is the most basic to affirm and encourage legal reporting, and the reward intensity needs to correspond to the current amount of administrative fines. On the other hand, it is also very important to improve the whistle-blower protection system, which is not lower than the reward itself, so it is necessary to strengthen the system construction in this area in the future.
"There are two aspects to protecting whistleblowers. First, the confidentiality of identity information needs legislative protection; Second, it is necessary to establish a system that prohibits whistleblowers from taking revenge and punishes retaliation itself. Securities regulatory authorities mainly reward informants, but the protection of informants can not be achieved by a single department. I hope that the upcoming Regulations on the Supervision and Administration of Listed Companies can be promulgated, and relevant systems can be further supplemented at the legal level and even the criminal law level in the future. " Tang Xin further explained.
Zhu Yiwei said that for the capital market, the establishment and continuous improvement of the "whistleblower" system is conducive to strengthening the supervision of the capital market and escorting the steady development of the capital market.