A Study On Legal Mechanism Of Preventing Internet Illegal Fund-raisingrisk

The Internet illegal fund-raising risk refers great adverse consequences to investors and financial order which bought by a new forms of illegal fund-raising.The emerging Internet technology and traditional illegal fund-raising combine to this new forms of illegal fund-raising.Internet Finance turned out no doubt for bring new ideas for the active private capital market and solving the financing difficulties.It injects substantial liquidity into the real economy.It enriches the private capital investment channels.However,the information asymmetry between the main parties makes it contains a great deal of illegal fund-raising risk."The East venture" "The Days of The Loan" "The Gold Loan " "The Allah Loan" emerge in an endless stream,which not only make many investors cause property losses,but also using scarce resources of integrity,triggering a crisis of confidence in the Internet,bringing a major threat to the current financial management order.How to effectively prevent the risk of illegal fund-raising on the Internet has become an urgent problem to be solved.The information asymmetry between the parties is one of the important reasons leading to frequent Internet illegal fund-raising.There is an inherent logic relationship between the Internet and illegal fund-raising risk can not be ignored.Most of the information asymmetry can not get the proper solution in the framework of the market,so the intervention of public power becomes necessary.According to the advanced experience of foreign countries and combining with the actual situation of our country becomes an effective way for the prevention of Internet illegal fund-raising risk.Along this line of thought,this paper is divided into four parts besides the introduction and conclusion:The first part is an overview of the legal system of risk prevention and control of illegal fund-raising.The inherent logic between the Internet should not be underestimated the risk of illegal fund-raising and asymmetric information.The Internet information overload increases the cost of information screening.The weak exclusiveness of Internet information induces collective irrationality.The breaking of repeated game mechanism reduces the cost of default.The breakthrough of acquaintance society and the credit function of interpersonal network.We should through the re allocation of rights and obligations as well as the optimal design of the specific system to prevention and control of specific Internet illegal fund-raising risk such as the loss of property investors,Internet trust crisis and the disrupting financial order and so on.The second part is the introduction of the legal problems of the legal system of risk prevention and control of illegal fund-raising.The dominant party has limited disclosure obligations: lacking of mandatory standards for information disclosure,and the weakening of supervision function of information disclosure.The Inferior party information support is weak:low efficiency of legal system and rigid legal system of credit rating.The third party information incentive fails:the system leads to the inversion of public opinion;The incentive settings lack incentive effectiveness;The attention to the cost of behavior is Inadequate.The third part is the international experience of risk prevention and control of illegal fund-raising.The United States,Britain,Italy and France provide us with the appropriate disclosure,hierarchical disclosure,investor risk education and other information disclosure experience.The United States,the European Union and Japan have a wealth of practical experience in the supervision of credit institutions and market access.The United States,Japan and Taiwan in the whistleblower protection,reward and other aspects of the report also provides a useful reference for the improvement of China's reward system provides a useful reference.The forth part is mainly aimed at the problems existing in the legal mechanism of Internet illegal fund-raising risk prevention and control in our country.We can improve the current information disclosure system by strengthening the information disclosure standards and information supervision system.By innovating the legal system of credit checking and amending the legal system of credit rating,the credit system of our country is more complete.We can stimulate the government reward reporting system through the positive performance of the reporting system,achieving the rigidity of reporting incentives and encouraging a variety of forms of reporting incentives.So as to effectively solve the problem of asymmetric information between the main body of the Internet to achieve effective prevention and control of illegal fund-raising.