Securities Association of China, Measures for the Administration of the Mediation of Securities Disputes (Trial Implementation)

中国证券业协会证券纠纷调解工作管理办法 (试行)

July 12, 2012 | BY

clpstaff &clp articles &

Mediation of securities disputes introduced.

Clp Reference: 3700/12.06.11 Promulgated: 2012-06-11

Issued: June 11 2012

Interpreting authority: the council of the Securities Association of China (the Association) (Article 24)

Applicability: For the purposes of these Measures, the term “Mediation of Securities Disputes” (Mediation) means the activity whereby, with the consent of the parties to a securities business dispute, the mediation organisation of the Association attempts to procure, through means such as persuasion, counsel and conciliation, the reaching by the parties of their own free will of a settlement agreement on the basis of negotiations conducted on an equal basis and thus resolve the securities business dispute (Article 2).

Main contents: The scope of acceptance of the mediation centre for securities disputes of the Association (the Mediation Centre) includes:

(1) securities business disputes that arise between members;

(2) securities business disputes that arise between members and investors; and

(3) securities business disputes that arise between members and other interested parties (Article 12).

The Mediation Centre will not accept a dispute if, for example:

(1) a party expressly refuses Mediation or fails, in accordance with provisions, to respond agreeing to Mediation in a timely manner;

(2) the dispute has been accepted by a court, arbitration institution or other institution or there is already an effective judgment, arbitration award or other handling result; or

(3) due to the complex facts of the case or the overly high amount involved, the Mediation Centre is of the opinion that Mediation is not appropriate (Article 13).

The funds for the Mediation work will be provided by the Association and other sources. Investors will not be charged anything for Mediation work (Article 14). If, following Mediation, the parties reach a consensus on resolution of the dispute, they shall execute a Settlement Agreement (Article 16). A settlement agreement that has provisions regarding civil rights and obligations shall have the nature of a civil contract once it is signed or stamped by the parties (Article 18). Once the mediator and the Mediation Centre sign and stamp a Settlement Agreement, the parties may apply to the competent people's court for confirmation of its validity (Article 19).

Related legislation: PRC People's Mediation Law, Aug 28 2010, CLP 2011 No.2 p.51

clp reference:3700/12.06.11promulgated:2012-06-11

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