The China Securities Regulatory Commission is soliciting comments on Guiding
Opinions on Advance Compensation in the securities market. The draft designates
China Securities Investor Protection Fund Co., Ltd. as the primary provider of a
package of full-process services, including advance compensation plan drafting
and implementation guidance, investor loss calculation, a dedicated online
compensation column, and special fund management. The Fund will provide
professional support only on a voluntary, entrusted basis, free of charge, and
will not assume civil liability for responsible parties or exercise
recovery/recourse rights on behalf of the advance-compensation entity. The draft
establishes an entrusted-assessment mechanism and requires entrusted cases to
have clear facts, clearly defined investor-loss calculation elements, and an
advance-compensation entity with adequate capacity and effective authorization.
