The Foundations for Establishment and Juridical Personality of the Compensation Fund for Damages Caused by Crimes and Violations in Iran's Capital Market; Guidance from American Law

Document Type : Original Article

Author

Assistant Professor, Department of Private Law, Faculty of Law, University of Science and Culture, Tehran, Iran.

Abstract

The "Fair Fund" is a mechanism provided for within the American legal system to compensate for damages arising from crimes and violations in the capital market. In our country's legal literature, the challenges of establishing a similar fund in Iran have previously been raised, and appropriate responses to address these challenges have been proposed. Now, the pertinent questions regarding such a fund in the Iranian legal system are: first, what are the foundational bases for establishing such a fund? Second, assuming the establishment of this fund in Iran, is it possible to foresee a juridical personality for it or not? This article, prepared using a descriptive-analytical method and by referring to library resources, attempts to answer these questions by considering the similar experience of the Fair Fund in the United States. In conclusion, firstly, the "full compensation" principle, "horizontal equity," and the "expediency" principle can be introduced as the foundational bases for establishing a compensation fund for damages arising from crimes and violations in Iran's capital market. Secondly, the foreseeability of juridical personality for the bodily injury compensation fund with a similar function compared to the fund subject of this paper, as well as the granting of juridical personality to Funds "A" and "B" of the Bankruptcy Affairs Administration, the necessity of avoiding undue preference, and the existence of logical and rational conditions for granting juridical personality in the case at hand, all strengthen the argument in favor of foreseeing a juridical personality for the compensation fund for damages arising from crimes and violations in Iran's capital market.

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History

  • Receive Date: 22 January 2026
  • Revise Date: 10 March 2026
  • Accept Date: 19 April 2026

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