Construction and Improvement of the “Criminal-Administrative-Civil” Coordinated Accountability Mechanism for Financial Fraud

Abstract

Financial fraud in the capital market has become increasingly chained and covert. Relying solely on a single accountability method of administrative, criminal, or civil liabilities can hardly simultaneously achieve the goals of punishing illegal acts and relieving investors’ losses. Constructing a three-dimensional coordinated accountability mechanism integrating administrative, criminal, and civil liabilities is a practical choice to improve capital market governance. China has now established a legal and policy system for the administrative, criminal, and civil accountability of financial fraud, but judicial practice still faces practical problems such as inconsistent standards for entity determination, blocking points in procedural connection, diluted cross-departmental coordination mechanisms, and insufficient rules for disposing of property involved in cases. Combined with judicial practice, this paper briefly sorts out the existing institutional foundations, focuses on analyzing the practical dilemmas of coordinated accountability, and proposes targeted improvement paths, so as to promote the formation of a closed loop among the three types of accountability mechanisms, implement the orientation of “pursuing the primary wrongdoers and punishing the accomplices”, and provide practical references for resolving securities disputes and protecting the rights and interests of small and medium investors.