Research On Legal Issues Of P2P Lending Investors Protection

The benefits of P2 P lending investors is the primary motivation of P2 P lending markets.After2012,P2 P lending industry began to flourish.More and more investors stepped into this area because its high profits and “no supervision,no standard and no threshold” of this industry.P2 P model has developed in many fields of financial industry rapidly for more high quality capital fund.From the simple debit and credit to supply chain finance,factoring business,bill finance,and consumer finance,because P2 P lending business got innovated on the capital side,adding lots of decoration to the more professional and more complex capital operating model,the investors could only see the simple numbers like the expected annualized returns,time limitation and etc.The unbalanced information is the obvious disadvantage of P2 P lending business.The investors lacked information access,right risk perception,investing experience and professional financial knowledge.But they encountered the P2 P lending business which has defective information disclosing system,diseased credit system,incomplete supervision system and crazy innovation,which caused frequent extreme cases like running away with money,Ponzi scheme,fraud etc.This threaded the property security and some other rights of the investors,and highlighted their weak position day after day.Therefore,this article analyses from the standpoint of concept that P2 P lending investors belong to financial consumer.It also determines that general investors as the protected people from the standpoint of denotation,and determines its weak position.Then the second part selectively explains the necessity of protecting P2 P lending investors from three aspects including information asymmetry theory,the irrational acts off the investors,and the limitation of “caveat emptor” principle.Next the third part analyses what rights they have at present,especially the current status of these rights and the causes of their problems,which explains again the importance of protecting P2 P lending investors.Meanwhile,concerning the problems and the causes,the forth and fifth parts offer suggestions on the ideas and models of supervision,system to resolve the disputes and etc.The supervision to this industry and the protection to the investors should accord with ensuring the normal function of market mechanism.The investors will benefitif the tripartite sides are in a virtuous circle.Therefore,in 2014,the government issued the “Four Rules”,and set the “Negative List” model,which gave market room to adjust freely.In 2016,special rectification and the supervision policy was started formally.During 2014 to 2016,the different measures to different plant-forms showed flexibility of supervision and respect to marketing regularities.Accordingly,the government should carry out gradually the supervision policies like improving information disclosing system and aim at ensuring the normal function of market mechanism.Meanwhile,to ensure the rights of investors practically,the government should build up a pluralistic system to resolve the disputes which accords with the features of P2 P lending business and bases on the traditional solution ways,and also should prepare to build up the financial ombudsman system in P2 P lending field.