Research On The Legal System Improvement Of P2P Network Lending

Peer-to-Peer Lending is a combination of folk Lending and the internet.Such a platform breaks through the limitation of geographic and international relationships,and has advantages in the fields of easy review process,flexible trading,quick bank lending and low transaction cost,The platform turn out to be developing rapidly.The platform is of great importance to the development of our finance system,It is beneficial to financial innovation,It is good for meeting the shortfall of the traditional financial institutions,It helps realizing the inclusive Finance.Compared to the rapid development of the platform,the regulatory system is imperfect.It has brought a lot of risk to Lending platforms,lender and financial market.In order to cope with the financial risks,China's regulatory authorities have issued a series of rules and regulations to regulate the development of the online lending industry since 2016 and the effect was remarkable.However,compared with the mature legal system abroad,There are many deficiencies in our current legal rules.This paper analyses the legal system of P2 P Lending,especially for“Interim Procedures for the Business Management of Online Lending Information Intermediary Agencies”(hereafter referred to as “Interim Procedures”).It is found that the following problems exist in the present legal system:Firstly,The Information disclosure rules lack specific standards.The contents of disclosure are disorganized and there is no uniform format.The information that the platform discloses lacks certification system,making it hard to distinguish between the truth and the false.The low cost of fake information is difficult to promote the proper disclosure of information.Secondly,The online lending industry lacks the admittance threshold.The current legislation does not set the standard of network technology,the network security of the platform is worrying.There are no hard-and-fast rules for the minimum registered capital in the establishment of the online lending platform and the shell companies are bad for the interests of investors.The employees of online lending platform is lack of the uniform standards,which can easily lead to man-made risks.Thirdly,The construction of credit system is seriously lagging behind.It is difficult to effectively protect the information security because the laws on credit collection are insufficient.The data collection standards are not unified,and there are obstacles in connection with the central bank credit system.The data collection method is conservative and single,and the credit system of central bank can not cover the underdeveloped areas of credit records.Fourthly,The withdrawal channel of the platform is single.The current legislation lacks civil liability,which is adverse to the interests of investors.The role of the regulatory authorities is not clear when the platform withdraw from the market.The exit channel of the platform is too single to effectively deal with the complex situation.This paper puts forward the following measures to improve the regulatory system through the study of foreign supervision system:Firstly,Specific rules for information disclosure.Supplementary provisions shall be made to increase the cost of fake information disclosure.Formulate unified standards for disclosure forms and standardize the presentation methods of content disclosure.Establish a certification system for information disclosure to help investors pick true information.Secondly,Set admittance criterion for P2 P platforms.Set the minimum capital for the platform and remove the inferior platform.Clarify the basic standards of practitioners and let professional people do professional work.Formulate the technical standard of the platform and maintain the network security of the platform.Thirdly,Build a platform of credit reporting on the network finance.Quicken the pace of legislation on the credit investigation of online lending and use the system to protect the information security.The establishment of information sharing platform unify the technical standard for the online lending platform that will be access to the central bank credit system.Fourthly,Establish the exit mechanism for online lending platforms.Clarify the civil liability of the subjects and provide the system basis for the investor's recovery.Clarify the takeover conditions and the role of the regulator in the exit mechanism.The establishment of the living will system,the risk early warning mechanism and the third party takeover system help the platform exit the market reasonably.