Research On The Legal Issues Of Investor Protection In Equity-based Crow Funding

Equity-based Crowd funding is a new mode of financing that refers to the issuer through platforms to release the information,investors to acquire the future proceeds of the financing project,and the raised platform in equity trading.It's bring wealth to the public and solve the difficulties of start-ups in financing in our country.Because of the lack of professional financial knowledge,investor can not determine the size of the investment risk,pricing ability is small,it is difficult to bear the risk of failure of financing projects,under asymmetric information,resulting in fraudulent distribution.It's advantage the healthy development of the stock raising,the stability of the financial market and the important goals to improve and perfect Equity raising legal system to protect investor.This paper analyzes the risks faced by investors in Equity-based Crowd funding,consider the investors face many risks in addition to its own disadvantages.In our country,Equity-based Crowd funding shall comply with the Company law and Securities law,are encouraged to create a new schema to avoid the illegal securities.There is a problem that the actual number of shareholders of Equity-based Crowd funding is not in conformity with the law It is not possible to reduce the risk even if the shares are held on behalf of others or set up a platform to hold shares.In the mode of corporate governance of the LLC,the investor can not have working of corporate governance.It's difficult to trade in the market,stock dividends are not guaranteed,and shareholders how to exit the company is not clear.Compared with the US,Korea,UK and others country have enacted laws,raise the stakes in the legal status,applicable conditions,and the rights and obligations to protect investor.In addition,the investors suitability system applies to Equity-based Crowd funding to ensure that the risk borne by investors and investors' personal assets,the expected value of investment income,requirements,knowledge background and other conditions match,make sure provide products and services that meet the needs of investors.To protection of investors should allow Equity-based Crowd funding to raise public offering of shares and ensure the platform neutral and Independent,set the platform to raise public equity,determine the minimum obligation of information disclosure standards,and the degree of financing the public to raise equity in strengthening investor risk education,establish a sound legal system for investor protection.