Strengthening communication and liaison between financial trials and financial supervision

2023-08-30

Adhering to the system concept is one of the "Six Musts" proposed in the report of the 20th National Congress of the Communist Party of China. To comprehensively and coordinately promote the construction of Chinese path to modernization, the people's courts should strengthen forward-looking thinking, overall planning, strategic layout, and overall promotion, give full play to the regional polarity of all parties, focus on preventing and resolving systemic financial risks, maintain financial order, safeguard national financial security, and achieve the unity of development quality, efficiency, and security. Accurately grasping the relationship between financial adjudication and financial regulation also requires adhering to a systematic concept, strengthening communication and liaison between financial adjudication departments and financial regulatory departments, and promoting the high-quality development of China's financial industry. Unify values and maintain financial order. Finance, as the core of modern economy, not only involves economic individuals, but also involves resource allocation and the balance of the industrial structure of the national economy. Financial security is an important component of national security and an important foundation for stable and healthy economic development. Maintaining financial order requires the formation of a unified value concept between financial adjudication and financial regulation. For example, as an important deployment of the Central Committee of the Communist Party of China, preventing and resolving systemic risks requires strict adherence to financial trials and regulation in specific judicial and law enforcement processes. In addition, improving and enhancing the business environment is also a common value concept of financial adjudication and financial regulation, and it is also a necessary meaning for financial services to serve the real economy. By unifying values, financial adjudication and financial regulation can form a synergy in maintaining financial order. Following the concept of organic unity, properly handle civil, administrative, and criminal cases. The trial of financial cases is complex. In addition to civil disputes, financial regulatory enforcement may also trigger opposition and administrative litigation from administrative counterparts. In extreme cases, it may also trigger public prosecution and criminal trial of financial crimes, which may involve cross disciplinary situations between criminal and civil law, such as the crime of illegal loan issuance and guarantee contract disputes, the crime of fundraising fraud and deposit contract disputes. For such cases where multiple procedures intersect and compound, the people's court should follow the concept of organic and unified system judgment, strengthen the coordination of civil, administrative, and criminal case trials, ensure consistent processing logic, coordinate trial results, and allocate administrative responsibility, criminal responsibility consequences, and civil responsibility in an orderly and smooth manner, to avoid conflicts in judgment results between different procedures. Play a stabilizing role and serve the construction of a business environment. For transactions conducted by commercial entities based on genuine transaction intentions and without violating laws, regulations, public order, and good customs, it is necessary to provide them with deterministic business expectations and interest protection to create a good business environment. For any financial transaction, facilitating the signing of a contract requires the parties to invest time and cost. However, if the effectiveness of the contract is uncertain, it will bring many drawbacks: firstly, it will suppress the parties' reasonable trading needs; Secondly, it will increase transaction costs. For example, parties may try to avoid the consequences of contract invalidity by signing drawer agreements, designing complex transaction structures, and elongating transaction chains, which not only complicates the originally clear and simple legal relationship, but also increases transaction costs for parties; Thirdly, it will amplify the speculative motives of the parties involved and the uncertainty risk of contract performance, such as the risk of continuing to perform the contract to oneself

Edit:Ying Ying    Responsible editor:Shen Chen

Source:rmfyb.chinacourt.org

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