Research On The Suitability Of Equity-based Crowdfunding Investors

In recent years,equity-based crowdfunding has gradually developed into a symbol of financial innovation.Many countries in the world are struggling to seek legal measures to standardize equity-based crowdfunding.However,judging from the current state of legislation,it is inevitable that the laws will tilt towards the platform and financiers,which goes against the protection toward the investors.The eligibility system is a mature system in the stock market and plays a very good role in investor protection.The author believes that combining the investor eligibility system with equity-based crowdfunding can be the best feasible way to protect the investors.This system is to set appropriate obligations for crowdfunding platforms so that they can protect the interests of investors according to the different circumstances of different clients,including property conditions,investment experience,age,etc..In this way,this system can provide matching services to protect the interests of the investors,such as the classification of customers,disclosure of discrepancies,limited amount of investment,and the establishment of the lead investment system.China still lacks legislation on equity-based crowdfunding in its current law system.The public knows little about the connotation of this system.Therefore,this paper seeks to profoundly analyze the core of the system and build a complete structure of this system through theoretical researches.The preface of this paper expounds the background,significance,status of researches at home and abroad,as well as innovation points,and clarifies the research ideas of the paper.The second part elaborates on the concept definition and basic theories of the system.First,introduce the connotation of this system,and differentiate it from the Qualified Domestic Institutional Investors(QDII)system.Through the fulfillment of appropriate obligations of the crowdfunding platforms,the investor eligibility system of equity-based crowdfunding allows all levels of investors to enter and provides different matching services accordingly to different customers,which is different from the QDII system.QDII system issimply a restricted access threshold for investors and excludes ordinary investors.After all,the investor eligibility system is a relatively mature system in the stock industry.Yet in the face of the newly-emerged financing model of equity-based crowdfunding,its particularity makes some parts of this traditional system not very consistent with it,for which it requires theoretical breakthroughs and improvement in the system itself.In that case,it can only be fully applied.The broad connotation of the fiduciary obligation is exactly theoretical breakthrough.The appropriate obligation of crowdfunding platform is the embodiment of the wide connotation of fiduciary obligation,and it cannot be explained by a traditional trust protection theory.Then,in the last part of the second part,this paper analyzes the particularity of equity-based crowdfunding and the inadaptability of traditional theories,and concludes that the traditional system cannot fully cover the equity-based crowdfunding market.Therefore a conclusion of its exclusive theory and connotation is needed.The third part elaborates on the necessity and feasibility of applying this system and lays the foundation for the following system construction.With the development of equity-based crowdfunding,investors are an important subject.The demand for investment directly leads to the realization of the goals of the platforms and the financiers.Existing problems will directly or indirectly affect the interests of investors,and are not only detrimental to the protection of their own interests,but also to the rapid development of equity-based crowdfunding.And the investor eligibility system can play a role in protecting investors through the matching service after the platforms have analyzed and matched their investors.It is undoubtedly the most appropriate solution to the current situation.But only the idea is not enough.How can the system be implemented in practice? There is no doubt that we need to learn from the experience of other countries.For the use of this system in the equity-based crowdfunding market,although other countries have not formed a unified system,they have specific provisions,such as the provisions on the classification of investors and the difference in the amount of investment.The specific provisions of this the investor eligibility system provide reference for China to construct its own system on it.Not only that,in China's stock market,there has been a concrete application of the investor eligibility system,which to a certain extent has shown our country's affirmation on the use of this system.The fourth part elaborates the assumption of the construction of this system from subject obligations of the platforms and other subject auxiliary obligations.The key to determine an institutional content is feasible or not depends on whether or not the maker can accurately understand the core connotation of the system.Through the foregoing analysis,it's learned that the core connotation of the investor eligibility system for equity-based crowdfunding investors is the matching services.The subject for providing services is the crowdfunding platform.Therefore,the appropriate obligation of the platform becomes the core content of the system,including the understanding of different customers,differentiated management,etc.This system design not only conforms to the original intention of equity-based crowdfunding,but also protects the interests of all investors and promotes the long-term healthy development of equity-based crowdfunding.Of course,the fulfillment of the obligations of the platform also needs the cooperation of other entities,such as offering truthful information,etc.Only on the basis of authentic information can the platform classify and integrate the information,which is also the basic obligation of other entities.