Research On Legal Regulation Of Equity Crowdfunding

As a financial innovation,Equity Crowdfunding is an important part of Internet financial,which has great significance for the development of small and micro enterprises and start-ups.This financial model risen in the United States and other developed countries,and then swept the world,it also shine in Chinese market where the Internet financial is hot.Our country has serious financial repression,The reality of the financial demand is strong,especially small and medium micro-enterprise financing has been troubled by one of the main factors in its development.In recent years,China is also actively promoting the supply of finance to address this issue,but with little success.The birth of equity crowdfunding provides a new possibility to solve this problem,and equity crowdfunding can provide a direct financing platform for small and medium micro enterprises and start-ups.Relative to the traditional capital markets,it’s more simple and convenient,and can compensate for the lack of supply in the secondary market of financial problems.Thus,equity crowdfunding is helpful to the development of small and medium micro-enterprise and start-up,which has been accepted by the community,and the Prime Minister Li Keqiang are vigorously promoting the development of equity crowdfunding.When equity Crowdfunding,as popular financial innovation,is fashionable,it also brings a lot of problems,especially the problem of investor protection.European and American countries have carried this legislation or regulations amending the law,but our system construction has been lagging behind,and the actual development of unrest also hidden a large number of threatening,the judiciary began to the front to face the disputes this new thing brought.That is the case,passive participation of the judiciary can not hide the lack of institutional and solve the problems,even the administration of justice lack the appropriate legal basis.The development of equity Crowdfunding without the support of the face more risks and challenges,especially the deformation of development model,in the name of private equity is the reality of the public offering,which has greatly restricted its own development and also affect the possibility for small and medium micro enterprises by offering financing.Our regulators have noticed the embarrassment of equity crowdfunding’sdevelopment,and are also actively promoting the construction of the system,but the years are not the appropriate substantive progress.Coincided with the substantially modified of China’s "Securities Act",equity crowdfunding as a new securities issuance is expected to be included within the scope of its regulation.However,the "Securities Law" is facing some uncertainty and slow pace,even if successful amending the law,it can only be a basic framework of the regulation,not be completely covered by equity crowdfunding specific problems,to build our equity crowdfunding Regulation System is a an important issue to real need.In this regard,this paper based the regulation experience in comparison extraterritorial countries and regions,and according to the reality of our situation to build our equity crowdfunding regulation system.The study integrated use of the Interpretation Act,Economic Analysis of Law,Comparative study,various research methods to expand the empirical analysis.There are 7 chapters in this dissertation except the part of foreword:Chapter Ⅰ is the "object category of equity Crowdfunding’s regulation",which is a comprehensive introduction to the equity Crowdfunding,including the connotation of the concept,legal attributes,the generation of interpretation and the functions.The interpretation of the basic situation of equity Crowdfunding is the basis for the development of this article,especially the legal attribute that it is the public issue of securities,which is the logical starting point of this article.Chapter Ⅱis the realistic picture of equity Crowdfunding,which is summarized by the present situation of the development of Crowdfunding equity,including the macro trend,the reality operation and the future trend.Then it finds out the practice alienation in the development of China’s equity,it is public offering in the name of the private placement,which is contrary to the intention of Crowdfunding.The reason is largely due to the current legal framework,especially the securities law for public offering restrictions.The alienation is the starting point of this paper.Chapter Ⅲ is the theoretical support of the legal regulation of the equity Crowdfunding.With the help of the theory of economics and jurisprudence,the author makes a theoretical interpretation of the legal regulation of the allies.It focuses on theoretically answering the question of why the Crowdfunding is regulated,which includes the theory of market failure of regulation economics,information economics theory of information economics,behavioral economics of investors irrational theory and economic law on the double failure theory,securities law investor protection theory,and it is the theoretical support of the whole study.Chapter Ⅳ is the basic framework of the legal regulation of equity Crowdfunding,which is a direction of the regulation of equity ownership,and systematically expounded the regulation idea,regulation mode and dimension structure.Regulation idea is to introduce a modest regulatory concept in a clarification of the traditional regulatory concept that requires a trade-off between facilitating financing and protecting investors.The regulatory model focuses on the legislative and regulatory priorities of equity,and the American experience is worthy of our reference.Regulatory dimension is an introduction to the contents of the regulation,and the distribution system of the equity is divided into three parts: preventive regulation,real-time supervision and special protection.Chapter Ⅴ prepared to start building equity crowdfunding legal regulation of specific systems in the basic framework of the third chapter,this part is " the access regulation of equity crowdfunding." This section focuses on access issues on equity crowdfunding three body(including equity crowdfunding platform,issuers,investors).It fully draw on outside experience,combined with China’s actual to build an equity crowdfunding barriers to entry in order to reduce the risk of equity crowdfunding through this design.Chapter Ⅵ is followed by Chapter Ⅴ of the system construction,it’s called " the operations regulation of crowdfunding equity." Combining the basic concept of traditional securities laws and the actual development of equity crowdfunding,the issuance regulation system and trading regulation system of equity crowdfunding have been built.Issuance system focused on the issue exemption system,which is reflected in the moderately idea.Trading system is a major bottleneck restricting the development of equity crowdfunding in the global,we explored the trading system of equity crowdfunding on the basis of multi-level basic market.Chapter Ⅶ is " the special protection of equity crowdfunding." It is a concentrated expression of appropriate regulatory philosophy for equity crowdfunding.Information disclosure is the core of the investor protection,the equity crowdfunding as a special type of securities,the information required to be disclosed in the balance between cost and risk warning.Furthermore,in view of the special nature of equity crowdfunding,the cooling-off period,the amount of investment content control,managed funds and other systems were designed to be investor protection system,and we build a complete investor rights protection system entire in the equity crowdfunding legal regulation system.