Boundary Of The Internet Financial Innovation And Financial Regulatory

Financial innovation and financial regula tion is not only suf fering from the co-existence of a couple of academic concepts,but in practice is also a game between two kinds of behaviors.W ith the rapid de velopment of Internet financial innovation,not only impact th e existing pattern of financial business and financial institutions,and cause a deep chan ge of the financia l market risk,and puts forward the new proposition of financial consum er rights and interests prot ection.However,the traditional financial regulatory rules financial innovation is difficult to adapt to th e Internet,how to define the boundary of the regulation and innovation,prom ote the benign interaction,rather than a negative escape regulation or inhibit innovation,need to introduce the concept of financial consumer protection.The first chapter in troduces the tradition al theory of fina ncial regulation,th e traditional financial supervision is the power source of the f inancial markets of macro-prudential demand,excessive financia l innovation led to the increase of systemic risk,financial market instability due to the homogeneity of financial markets,pro-cyclical intensified the vola tility of the financial system,the expansion of the shadow banking system and supervision vacuum and regulatory fragm entation induced regulatory arbitrage constitute the legal basis f or the m acro-prudential regulation.Traditional financial regulation theory including the co st-benefit theory,boundary effectiveness theory and functional regulation theory,etc.The second chapter introduces the Internet financial has po sitive impact on the traditional financial form s,induced th e financial democra tization,reversed transmission financial institutions to channel,weaken the function of financial intermediaries.But financial innovation traditional regulatory response to the Internet,macro-prudential regulation in response to small loans credit risk and control risk,middle account inform ation,financial inform ation disclosure risk,fraud,breach of contract and defective perfor mance of the plight of th e respect su ch as;And lay particular stress on accountability for later cause regulatory inefficiencies,such as the regulation is the advance in P2 P network credit platform run frequent events;Simple rigid regulation ignored the financial liberalization and democratization requirements,does not conform to the financial concept;La y particular stress on crim inal disposal ignore the business rules,l ead to criminal law regulation such as pure through the crime of illegal fund-raising wall not only thin is hard to tak e temporary solution and effect a permanent cure;And supervised re spectively leads to m arket fragmentation,form long regulation mess.As a result,the third chapter explains the Internet under the background of the financial regulatory boundary theory of re factoring,should pay attention to the change of the Internet in the financial market main body determines the change of the regulatory boundary,the change of market and government relations determines the change of the regulatory boundary,such as expansion of the Internet financial investors concept category,consumer financial theory d etermines the regula tory boundary extension is put forward.At the sa me time,reconstruct the frontiers of regulation theory can overcom e the tradi tional law regulation,is the financial law protection of hysteresis and not adapt to solve the path of consum ers’ rights and interests protection law.On this basis,introduce the concept of financial consum er protection to the proposition that financial innovation and regulation,Internet explore an extension of the Interne t financial consumer rights protect ion in the field of interpretation is of great significance.At this time,should focus on the identity of the Internet financial sector consumers defining financial consumers’ rights consciousness and the Internet financial era.Both parties status and power imbalances,the severe information asymmetry,the format contract both parties need to ec onomic intervention,the Internet financial institutions of social respons ibility constitutes the theore tical basis of the Interne t financial consumer protection.From the pe rspective of protection of the object,the connotation of Internet financial consumer rights including security rights,the right to know and options,and from the pe rspective of path selection,choose the United States,Britain and th e European Union paper summarizes financial consumer protection rules.Specific to the Internet in the financial sector,consumer protection rules right as the core,through the financial institutions of demonstrative obligation and rights of consumer advice and implement consumer financial products or services provided by the financial institutions of information obtaining,knowledge and understanding.Information disclosure is the precondition of maintaining the right,the disclosure of information shall f ollow the continu ity and integrity rules,and information disclosure rules of sustainability of information disclosure shall throughout the financial transaction contract concluded before,during and after the three stages.Financial institutions in the financial consumers to purchase before,when,after both shall perform the corresponding obligations,so as to guarantee the financial consumers in the investment before,during and after the whole process can be learned from the purchase of financial products in formation.And disclosure of infor mation integrity rules that inf ormation disclosure shall at leas t include the content of the product structure,attributes,operating ru les,investment,risk,income and fe e standards,not only to adverse favorable fina ncial disclosure of consumer information and not to disclose information.In particular is a r isk disclosure rules,including specific risk disclo sure of financial products or services by Internet fina ncial institutions by consum ers to register account login netw ork provide em ail address and contact num ber,the purchase of the specific risk of financial products or servic es targeted to explain the ahead of tim e.While general risk disc losure through the form of platform announcement,will be universally applicable market risk,policy risk and so on to the entire financial consumers.Suitability Rule(Suita bility Rule)is the requirement for consumers in th e judgement ability of risk identification and risk tolerance,and assesses the risk of financial products,on the basis of their m atching,in order to realize the appropriat e product sales to the appropriate consumers.In addition,Internet financial consum er protection should be and prudential regulation phase separation,independent implementation at the micro level of fairness and justice value;At th e same time,stre ngthen consumer financial education and effective competition b y promoting Internet financial markets to b etter protect consumers’ rights and interests.Thus,we a ccording to the functional ar eas are divided into financing for the Internet sector and consumer,the corresponding financial consumers are divided into special financial consumers and the genera l financial,which include all th e raise equity and P2 P network cred it platform(also called the chips)niche financial consumers,the latter includes third-part y online paym ent services and balance the treasure and other network platform to se ll the m onetary fund of public financial consumers.Based on this,the fourth chapter discu sses the financial consum er protection proposition,P2 P network credit platform through the platfor m of historical origin,advantages and current situation of the de velopment of the comb,typed analysis was carried out on the P2 P network credit plat form,and it can be divided into three categories,the first is pure inform ation matching platform,the second category is the principal or interest guarantee responsibility of platform,the third c lass is creditor’s rights transfer platform.P2 P network credit platform exists not only a total of risk;three models are still in the liquidity,Ponzi scheme,illegal fund-raising,as well as their special legal risks.P2 P network credit platform has seven kinds of guarantee mode,but the basic classified into two categories,one is the risk margin,the second is the institutional guarantee guarantee and third-party guarantee(including the platform itself).In the platform to guarantee the path to explore,collateral and credit guarantee insurance,storage regulation ri sk slow-release tool is a feasible alternative.Through the review of U.S.circuit for P2 P loans securitization and the bottom line reingistic supervision regulation mode and South Korea,for the purpose of financial consumer protection discussed P2 P network supervision of the credit platform: the bottom line regulation,platform for positioning inform ation intermediary,independent escrow,perfecting the inform ation disclosure system,access m echanism,living wills an d industry self-discipline rules.Internet financial consumer protection ru les right as the core,pay attention to information security and security funds.So,first of all,need to make clear definition in the P2 P network credit platform,and to clarify its legal status.Second,through independent third-party escrow,prevent consumers money be diverted or with other project funding or financing.Third,on this basis,through the detailed and com plete information disclosure,the consum ers right to know.First,to ensure that consum ers aware of th e risk of project financing and the borrower credit before investm ent,financing,project purpose;Second,the invest ment can fully understand the term s of the agreement of m eaning,understand the product operating rules,standards and guarantee mechanism;Thirdly,after the investment can continue to get the track ing information with the b orrower credit financing project le vel,in th e event of late payment or project losses,timely access to inf ormation from the platform,and will take a collection property preservation m easures such as guarantee reimbursem ent ability.Simple information disclosure,of course,it is difficult to ensure th e maintenance of right to know,you also need to through the financial consum er education to strengthen the ego to protect consciousne ss.America is through P2 P network credit platform for inform ation disclosure,to help consum ers to know their investment and the degree of risk,and carries on the risk to bear ability appraisal,implementation in real consumption education and enha ncing protection consciousness.At this point,and then through admini strative regulatory bottom line regulation,pay attention to the mastery of barriers to entry,at the same time with the aid of the self-discipline management of trade a ssociation and realize a healthy m arket competition and financial innovation.In conclusion,financial innovation has a criterion of four,is the typical P2 P network credit: first,to the vu lnerable party in a f inancial transaction-f inancial consumer rights and interests protection;Second,in favor of financial functional-the ascent of the availability of financial services;Third,in favor of uncontrollable factors in the trading of lower-financial market risk control;Fourth,to reveal the essence of financial,improve the ef ficiency of inve stment and financing of both inform ation collection and matching.The fifth chapter discusses th e equity and the raise of financial consum er protection issues,based on the typed and equity of the raise of advantage for the raise,found that equity and the raise,asymmetric information,lack of professional investors risk of default,so the consum ers of dr aw lessons from Anglo-American countries rules and regulation of shareholders’ rights and interests safeguard m echanism can effectively set boundaries,protection of equity and the raise of the rights and interests of consumers.There is competing relationship between innovation and regulation,innovation is the breakthrough of of r egulatory rules,so will bring the risk of regulatory rules,for example,at this point,in the judgment of innovation is good or bad,not only focus on "rigidity" regulation,need through the regulatory boundary of the set,m ore fundamental constraints to achieve the m ain regulation and be havior regulation,among them,the main regulation is regulation of financial institutions on the Internet,focused on the mechanism of the assurance of risk assessment,control degree of wind,while behavior regulation on Internet financial institutions in the process of providing financial products or services,design,marketing,and the subsequent management.The sixth chapter discusses the issue of financial consumers’ rights and interests protection in third-party e-payment service.Third-party online payment platform,and there is a p rincipal-agent relationship consumers,takes care of the legal relationship and the relationship between credit guarantee.Third-party online payment of financial legal basis for the protection of the rights a nd interests of consumers is to balance the platform and the legal status of im balance between consumers and maintain financial capital security,privacy,and consumers’ right to know.Thus puts forward the funds management system and consumer rights protection mechanism.Treasure and balance as a third party online paym ent tool de rived network monetary fund,risk and consumers’ rights and interests protection problems.Financial risk is a "resource" through th e financial regulation to risk allocation,implementation constraints of potential crisis,good risk c onfiguration can realize the maximization of the interests of financia l innovation,at this point,the benign interaction between financ ial innovation and financia l regulation.The width and depth of the financial innovation depends on the risk allocation of market maturity.Financial regulation through external intervention to constraint the market main body behavior,reduce the transaction risks and co sts,safeguard the financial consum ers’ rights and interests,also promoted consumer confidence in the financial markets,thus promote the healthy mature financial markets and financial innovation.For our country,due to the inherent probl ems of the financial system,leading to a serious shortage of financ ial innovation,financial regu lation pattern is relatively rigid,innovative products are re latively drab.Therefore in the context of the history of deleveraging,at the sam e time promote the development of financial innovation,rely on to the financial consum ers’ rights and interests protection for the purpose of financial regulation.And deregulation not restrain the financia l innovation,and financial transactions via the Internet and financial product i nnovation,foster dom estic market risk allocation,gradually achieve self-discipline management and adm inistrative supervision of seamless,as far as possible in order to market constraints to maximize risk allocation and incom e,but also im proved the structure and pattern of financial products and services,and promote the di rect financing,to balance the high proportion of indirect financing.In conclusion,it should pay attention to the particularity of the Internet financial consumer protection mechanism.First of all,the Internet financial market flexibility and virtual,decided to c ontinue to avail him self of the traditional technology of financial industries m anaged and supervised respectively have been dif ficult to achieve dynamic protection of consum er rights and interests,so throu gh self-discipline management and flexible regulation of administrative areas,strengthen the product registration,fund custody and disclosure rules,can effectively control the pace of financial innovation in notice to m aintain the financial consumers’ rights and interests.Second,the regulatory rules s hould adapt to technol ogical innovation,in order to reveal financial consum ers protection mechanism of advancing with The Times of Internet.