Research On Legal Issues Of Risk Prevention On P2P Lending

P2P lending refers to direct lending between borrowers and lenders via legitimate P2P lending platform. P2P lending features in easily accessible, public transparent, small amount and high yield which makes it as an important supplement to traditional finance market. Not only it opens up a new investment channels for investors holding idle cash in China to meeting their financial demand, but also it provides means for financing for low-income earners including small and medium-sized enterprises or individual, and alleviates their difficulty of financing.However, the lack of special laws and regulations resulting in P2P lending’ business boundaries is not yet clear, has caused a lot of P2P lending platforms break through its nature of intermediary platform. Among lenders and borrowers as well as P2P lending platform, other than borrowing and lending contractual legal relationship and brokerage contractual legal relationship, there may be also exist security contractual legal relationship, and even the assignment of debts legal relationship. Among these complex legal relations, relevant parties in P2P lending can induce or face various risks.In the United States and United Kingdom where P2P lending industry started early and developed rapidly, there is a wealth of experience relating to P2P lending industry regulation. The United States adopted the separate regulation pattern including securities regulation, e-commerce regulation and consumer protection supervision, whereas United Kingdom adopted the mode which combines government regulation and industry self-regulation supervision. United States and United Kingdom provide the beneficial references for regulatory model of P2P lending in China.At present, the nature of the P2P lending platform in China is not yet clear, regulators and their responsibilities are not clearly defined, credit legal system is not perfect and self-regulation organization P2P lending industry is weak. Facing such industry’current situation, the special laws for P2P lending industry should be enacted, specific regulatory framework should be well-defined, a reasonable credit legal system should be built and P2P online lending platform industry self-regulation should be strengthened. Through a complete set of regulation, P2P lending industry will be guided into the healthy and orderly development.