Comparative Study on the Securities Arbitration System-Focusing on theProtection of Investors

• Main Authors: Yu-jing Chen, 陳育靖
• Other Authors: Yung-Cheng Chuang
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/20635482210556369608

碩士 === 東吳大學 === 法律學系 === 100 === The securities disputes could be solved by court, or solved through mediation,settlement or arbitration. Since year 2012, the government have supply another way tosolve the financial consumer disputes-The Financial Ombudsman Institution. The securities disputes between brokers and customers always solved by arbitration in America. Which is because the adhere contract with an arbitration clause. As we know, the arbitration is an efficient, cost saving, and much professional system. Can this model being used in our country? When we review the history of the securities arbitration system in America, found that there are three “key cases”. Which are “Wilko v. Swan ”, “McMahon v. Shearson / American Express, Inc” and “Rodriguez de Quijas V. Shearson /American Express,Inc”. The Supreme Court had changed his position to support the arbitration after the McMahon (1987). It is because the Securities and Exchange Commission (SEC) has does every efforts to set a good regulatory system of securities arbitration. However, the securities arbitration had been questioned for many years about the non-public arbitrator system, whether the mandatory arbitration breach the freedom of contract, and the transparency of the arbitration award. After the financial crisis of the WallStreet, America passed a bill of “Dodd-Frank Wall Street Reform and Consumer Protection Act”. Ask the SEC to review the arbitration clause in the account opening agreement. To answer the question of critics, FINRA had introduced several reforms recently.The reform of arbitrator panel, the customer has the right to choose “All public arbitrators” or “Optional public arbitrators”. FINRA Customer Code Rule 12904(g) allowed the two parties could request an explained decision. In this essay, in order to protect the investors in the securities, I recommend to adopt the model of America, and set some mechanism and gradually promote the securities arbitration system in our country.