Research On Legal Risk Supervision Of Balance

The development of the internet finance is the largest change and developing trend, while it can hardly do without the promotion of financial innovative products.“The Yuebao business”, launched by Alipay Company in 2013, has dramatically developed into a financial product with the largest users in China, and also forms into a kind of “Yuebao Effect”, under which some commercial banks and fund companies has also successively launched a series of financial products as Yuebao to compete the internet financial market. With this, internet financial has become to the public focus.While after the launching of Yuebao, financial and legal expertise has soon questioned the supervision and legal risks of these internet financial products, and some even claims that Yuebao should be substituted. Although Securities and Futures Commission proclaims that the internet financial products like Yuebao are still under effective supervision; while relevant problems gradually turn up in accompaniment with its growing increase and the appearance of new innovative products.The financial order has been brought a hidden risk by the prosperity of internet finance, the loss of relevant systems, and the slack regulation and precaution. There are some problems that we must encounter: how to perceive the legal risk of internet financial products represented by Yuebao in a right way, how to deduce adequate precaution towards legal risks, how to set up relevant legal system. Based on the economic management theory, combined earning data with news events, this article attempts to explore the problems may occurring in the legal risks, regulation and precaution of internet financial products represented by Yuebao.This article consists of six chapters; in first chapter the author gives a main elaboration of the development of Yuebao and the topic background, a statement of the practical and theoretical significance of studying the legal risk precaution of Yuebao. In second chapter, the author will summarize the operating model of Yuebao,analyze its legal relation, and propose a thought about its essence. In third chapter, the author give an elaborate analysis of the regulatory model, regulatory authority and regulatory principles under Chinese current regulation systems, a brief statement of the shortcomings that existed in the Yuebao supervision. In fourth chapter, from hidden operator of Yuedbao, the Alipay Company and its users, the author summarizes various legal risks of Yuebao operation. In fifth chapter, comparing the American and Japanese regulation of the similar internet financial products, the author summarizes some revelation from their supervisory experiences. In sixth chapter,from the processing of mechanism establishment and handling of realistic risks,the author proposes some practical resolving methods to the legal risk supervision of Yuebao and establishes a large deposit of risk control mechanism.Given my limited theoretical knowledge and practical experience, there are many problems in my article, which needs to be rectified by honorable experts.