The new Securities Law innovatively establishes the institution of undertakings made by the parties to securities administrative law enforcement to promote the orderly improvement of enforcement efficiency and solve the problem of rigid law en-forcement.It has the institutional functions of promoting public-private cooperative enforcement,avoiding the administrative coun-terparties getting into insolvency and protecting investors.From the perspective of cost-benefit analysis,the main incentive for se-curities regulatory authorities to enter into commitment agreements with counterparts is to save enforcement costs,but they will face the questioning negatively impacting their reputational capital;while administrative counterparties will lower their non-monetary ad-ministrative penalties,civil litigation costs,and the risk of criminal liabilities,but they need to pay the compensation for investors in advance.To improve the effectiveness of the institution of undertakings made by the parties to securities administrative law en-forcement,it should institute reform measures to increase the incentives for relevant parties,create a compliance monitoring system and strengthen the coordination of different institutions.
administrative enforcementinstitution of undertakings made by the partiescost-benefit analysisfunctional analysisinvestor protection
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