The experts interviewed said that it is necessary to strengthen the protection system to encourage insiders to report.

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, 22, has increased the reward system for reporting securities violations in China and raised the reward system to the legal level.

on April 2, 221, the CSRC indicated that it planned to reward informants for five cases, namely, Sihuan Bio and Luke Ping, Tianbao Food Trust, Jiyao Holding Trust, Dehua Hengyi Trust and Sendong Power Trust. On the same day, China Securities Investor Protection Fund Co., Ltd. issued a description of the reward process and reward application. This is the first batch of "whistleblowers" in the capital market to be rewarded since the implementation of the new securities law.

Market participants believe that the whistle-blower 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.

insiders provide clues

The maximum reward is 6, yuan

From the practical point of view, in August, 219, the CSRC gave rewards to informants for three cases: Liao Yingqiang manipulated the market, Yabaite believed that it was illegal and Ren Zixing believed that it was illegal. Market participants believe that the matching degree between the bonus of whistleblower and the risk brought by the report will directly affect the enthusiasm of whistleblower. Historically, the amount of rewards for reporting securities violations in China has been increasing.

the construction of the whistle-blower 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 (hereinafter referred to as the Notice) issued by the CSRC in 21. The "Notice" shows that for reports involving a large amount, a wide range of personnel or great influence, a one-time bonus is not higher than 2, yuan; Those who report major clues or make special contributions can be rewarded handsomely.

In June, 214, the CSRC issued the Interim Provisions on Reporting Illegal Acts of Securities and Futures, and awarded no more than 1, yuan to general reports that meet the reward conditions; If the report has a significant impact on the whole country or the amount of fines is particularly huge, the reward amount is not subject to the above restrictions, but the maximum is not more than 3, yuan.

On January 14th, 22, the CSRC issued the revised Interim Provisions on Reporting Illegal Acts of Securities and Futures (referred to as the Interim Provisions), and the Interim Provisions added that "the insider provided clues about major illegal cases, and the maximum reward amount shall not exceed 6, yuan after investigation."

According to the Interim Provisions, the reward for reporting is limited to the real-name reporting of five types of illegal acts, that is, fraudulent issuance of securities; Information disclosure is illegal; Manipulating the securities and futures markets; Insider trading or trading with undisclosed information; Other major securities and futures violations.

Experts suggest

Strengthening the construction of whistleblower protection system

From the perspective of the protection mechanism for whistleblowers, the Interim Provisions strengthen the confidentiality measures for reporting in many ways to prevent the disclosure of identity information of real-name whistleblowers.

"First of all, the Reporting Center of the CSRC implements coding management on the name (name), certificate number, contact information, work unit, address and identity information of network informants, and uses coding in the investigation, punishment and reporting reward evaluation stages. Secondly, if it is necessary to inquire about the identity information of informants due to investigation, punishment or reward for reporting, registration procedures shall be performed. In addition, the Interim Provisions also clarify the system that staff responsible for handling reports and other relevant personnel should strictly abide by. " Zhu Xi explained.

The Interim Provisions clearly stipulate that the reported person shall not take revenge on the informer. That is, "the whistleblower shall not take violence, coercion, slander, disclosure of personal privacy or other illegal means to retaliate against the whistleblower. The whistleblower shall not retaliate against the internal whistleblower of 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 whistle-blower system in China's capital market, Tang Xin believes that on the one hand, it is the most basic to affirm and encourage legal reports, and the reward strength needs to correspond to the current amount of administrative fines. On the other hand, it is also very important to improve the relevant protection system for whistleblowers, and its significance 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 the protection of whistleblowers. One is the confidentiality of identity information, which needs legislative protection; Second, it is necessary to establish a system that prohibits the whistleblower from taking revenge and punishes the 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 management of listed companies will be introduced, and the relevant systems will be further supplemented at the legal level and even at the criminal law level in the future. " Tang Xin further explained.

Zhu Yiyi 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 its steady development.