The Construction Of Legal Supervision System On The Third-party Payment In Internet Finance

In the era of big data, a lot of new mode of business and companies arise in the field of Internet Finance taking advantage of the broad platform, retail customer resource and availability of big data. The fast development of financial product, like’Yu’EBao’, raise concern from the whole society about the the Third-party payment in Internet finance. The development of third-party payment industry in Internet finance meets the consumption requirement of the society and contribute the development of economy.However, what come together are risks in operation, fund management and credit, and these risks require regulation from law. The rules in third-party payment are not well-developed and are still exploring to complete themselves. This new industry and the risk associated bring new challenge to the legal regulation system. The main line of this paper is innovation, risk and legal regulation, and seek to construct a more comprehensive regulation system for third-party payment from the point of view of finance law. The aim of this paper is to promote the healthy development of Internet finance. This paper includes the following five parts:Introduction:Ⅰ introduce the background and meaning of this topic, and review the literatures in this field from China and abroad. The main point, innovation and weakness of this paper are also introduced.Chapter1:Introduction of third-party payment in Internet finance. The focus of this paper will be the third-party payment. I introduce the notion of Sleeping Funds, and present its several properties. The representative of Internet finance is ’ZhiFuBao’, who develops ’Yu’EBao’ to creatively manage the Sleeping Funds. The mode of ’Yu’EBao’ is analyzed in the third section.Chapter2:The necessity of legal regulation in third-party payment of Internet finance. I analyze the risk in third-party payment, including operation risk, which means the customer is not kept informed of the risk; Fund management risk, which means non-standard sleeping fund management; credit risk, which means inappropriate protection of customers’ personal information. These risks require legal regulation.Chapter3:Comparisons between different regulation systems. The first part summarizes the legal regulation system in China, and I conclude that the related laws do not have enough height of level, the content of these laws are still not complete and the responsibility arenot clear. The second part, I summarize the law-making, regulation system, and management of sleeping funds in U.S. and E.U. There are several things that we can learn.Chapter4:The construction of legal system in Internet finance. I give suggestions from five aspects, including:Be careful in regulation; Clarify the leader of regulation and construct co-operation mechanism; Construct appropriate entrance and exit mechanism; Introduce stronger regulation for sleeping fund.