On The Construction Of Legal Supervision System Of Equity Crowdfunding In China

Equity Crowdfunding,accompanied by the development of modern Internet finance as a new investment and financing tool,which can be regarded as a way of inclusive financial derivative in some way.Equity Crowdfunding mainly involved or focus on the rights and obligations from the financing of the project side,investors,as well as the Internet financial platform.In recent years,Equity Crowdfunding develops rapidly,which not only become a new path for small and medium-sized enterprises to solve financing problems,but also become a new financial management for investors.However,Equity Crowdfunding is running at the periphery of crime under the existing legal system and ineffective supervision,and cohabitation of platform and opaque information issues make the investors lost money.Thus,let me introduce a failing case of Equity Crowdfunding in the preamble,which will bring forward the theme of how to construct the legal supervision system of Equity Crowdfunding.In the first chapter,I will summarize its definition firstly,and then address its character and transactional model briefly,which will bring us an intuitive understanding.The legitimacy of Equity Crowdfunding is a prerequisite for the study of the construction of regulatory system of Equity Crowdfunding.While,the legitimacy of Equity Crowdfunding is only confirmed by regulations from theministries and commissions of the state,existing conflicts with the laws and regulations from Standing Committee of the National People’s Congress,which makes Equity Crowdfunding in the awkward position between crime and non-crime.Lack of standardization of platform and asymmetric information will make the investors party being the risk for the fraud,the risk of fundraising and capital tubing,as well as the risk for investors exercising their stockholder’s rights.In addition,this part will introduce the laws and regulations of Equity Crowdfunding at abroad,such as JOBS Act and rules of SEC,and then analyze the similarities and differences of the legislation about Equity Crowdfunding,which will help us construct the supervision system of Equity Crowdfunding.In the second part,this thesis will discuss the regulation system of the platform of Equity Crowdfunding.In other words,this article will elaborate the recent legislations and legislative proposals on the supervision of the Equity Crowdfunding platform,and discuss the shortcomings of the platform.Then,the article will expound the relevant provisions on the Equity Crowdfunding platform on abroad,such as JOBS Act,rules of SEC and the FCA’s regulations in England.We can understand and clarify the legal logic of the regulation system of the platform by studying how to supervise the Equity Crowdfunding platform in foreign countries.I take the viewpoint to construct a small amount of public offering exemption system,strengthen the obligations of the auditing and disclosing information of platform and set up capital custody and investment insurance,which will should be an important part of the regulatory system of Equity Crowdfunding in China.In the third verse,this dissertation illustrates the regulation system of Equity Crowdfunding from the angle of the issuer party.Firstly,this article will analyze the recent legislations and legislative proposals on the supervision of the issuer party of the Equity Crowdfunding.The issuer party has the duty to disclose relevant information truly,accurately,completely and timely,however,the present legislation does not specify the specific content,disclosure period and the responsibility from false statements or untrue information or omissions on the issuer party of the Equity Crowdfunding.This article will expound how to supervise the issuer party of theEquity Crowdfunding in JOBS Act and SEC Crowdfunding proposed rules of America,which will bring us to think of the construction of the supervision of the issuer party of the Equity Crowdfunding.The chapter will describe how to construct the regulatory system of the issuer party of the Equity Crowdfunding from the angle of the standard of information disclosure and obligation of information disclosure,which is the most important of the whole article.In the fourth part,this treatise will explore how to construct the guarantee mechanism of investors’ related rights from the perspective of maximizing the protection of investors’ interests.How to design the regulation system of accredited investors is the most important of this chapter,which will make its invest adapt to its investment level and risking bearing capacity.Recently,the draft of provisions of Equity Crowdfunding management,referring to the regulation of Interim measures for supervision and administration of private equity funds,to construct the system of the triple standards of accredited investors from minimum investment,scale of financial assets and the level of income.To judge a investor being an accredited investor or not is more important,according the ability of identification and responsibility of invest risk or not.Moreover,we mainly examine its subjective aspect from investor experiences,the knowledge,the capacity of undertaking and the objective aspect from property amount or cash flow and other comprehensive considerations.In all,the fourth chapter describes the construction of supervision of Equity Crowdfunding mainly according to the right to gain information,the regulation of cooling-off period and withdrawal mechanism,hoping to protect the investor’s legitimate rights and interests effectively.Equity Crowdfunding is one kind of Internet baking with a strong life and innovation.Equity Crowdfunding is still thriving in the gray area under the environment of non-provisions from higher order in the early stages of development,and it’s time to construct a benignant regulatory system of Equity Crowdfunding in China.This article discuss the regulatory system of Equity Crowdfunding from the angle of the issuer party,platform party and investor party,draw lessons from theregulatory system of Equity Crowdfunding in foreign countries,and construct the regulatory system of Equity Crowdfunding with emphasis on access mechanism of platform,information disclosure system and investor rights protection mechanism.In all,I hope this article will help the government to construct a favorable regulatory system of Equity Crowdfunding.