Research On Legal Protection Of Equity-based Crowdfunding Investors

Equity-based crowdfunding is a new investment and financing method designed to attract the financing of small and medium-sized micro and start-up companies through the Internet to absorb the idle capital of a large number of ordinary investors.The original intention of this investment channel is to solve the financing difficulties of small and medium micro enterprises.At present,whether the public is based on the public offering of equity-based crowdfunding is publicly classified as non-public equity-based financing and equity-based crowdfunding,of which the former's legislative attempts have started since 2013,until the 2016 China Securities Regulatory Commission and other 15 ministries issued The "Implementation Plan for Equity-based Crowdfunding Risk Renovation" was formally promulgated,which showed that the regulatory agencies pay attention to the non-public equity-based financing supervision of the Internet,indicating that its relevant regulatory rules have been nearly perfected.However,for equity-based crowdfunding,there is currently no relevant legislation or specific regulatory rules.The absence of equity-based crowdfunding in China's legal status will lead to increased investment risks and even infringement of legitimate rights and interests of investors.In the course of the operation of the financial market,investors play the role of the source,and protecting the legitimate rights and interests of investors is a prerequisite for the good running of the industry.Therefore,investor protection for equity-based crowdfunding should be based on the status quo and should focus on the future.Based on the reality of China's equity-based crowdfunding investor protection and the practical issues arising therefrom,this article aims at understanding,analyzing,and comparing the relevant legal norms and practical experiences of foreign investors for protection,and proposes to adopt legislation,government supervision,and platforms.From the perspectives of the financiers and investors themselves,they put forward proposals to improve the legal protection of equity-based crowdfunded investors.The body of this article consists of the following four parts:The first part explains the general theory of equity-based crowdfunding investor protection.First of all,it is clear that equity-based crowdfunding investors in the narrow sense should be included in the protection of financial consumers,followed by an analysis of the multi-method law relationships involved in equity-based crowdfunding,and clarifying the economic and legal relationship between investors and regulators.Finally,the three basic principles of equity-based crowdfunding investors are the principle of tilt protection,comprehensive protection and appropriate protection.The second part analyzes the current situation and problems of investor protection for equity-based crowdfunding in China.First of all,from a macro perspective,it analyzes the status quo of lags in equity-based crowdfunding legislation,regulatory organizations and rules,etc.Second,it reveals the current status of platform access,financier information disclosure,and investor self-protection with specific data and cases;The first case of crowdfunding led to a series of issues that were not conducive to investor protection,such as the lack of a basis for the legitimacy of equity-based crowdfunding,the lack of specific regulatory rules,the vague provision of platform powers and responsibilities,the unsoundness of information disclosure systems,and the high barriers for qualified investors.The third part summarizes and draws lessons from foreign investor protection related practical experience.This section mainly introduces the investor protection experience of the United States,Britain,and Australia.The three countries represent three different modes of equity-based crowdfunding supervision.The rules and regulations for the establishment of equity-based crowdfunding legislation,the rights and obligations of platforms and financiers,and the eligibility of investors are all well-established.The dispute resolution mechanisms in the UK and Australia are quite appropriate for China's sound investor relief system.The fourth part puts forward proposals for improving the legal protection of equity-based crowdfunded investors in China.First of all,from the macro perspectives of legislation and government supervision,it puts forward proposals for accelerating the introduction of relevant legislation and strengthening government supervision concepts and methods,and emphasizes the importance of local governments participating in equity-based crowdfunding supervision;Secondly,from the perspective of equity-based crowdfunding participants,it puts forward specific restrictive conditions for the access standards of the platform,and clarifies the main rights and obligations of the platform are pre-due due diligence,neutrality in the event,project supervision afterwards,etc.,and emphasizes the information disclosure obligations of financiers.And on this basis,improve China's social credit system;Finally,for the direct protection of investors,it is recommended to reduce the existing standards for qualified investors,and establish a diversified investor remedy system based on mediation to facilitate the from the admission to the follow-up relief to make more reasonable adjustments,at the same time,I advocate the establishment of equity-based crowdfunding investor protection fund,and demonstrate and analyze the feasibility and necessity of our country to establish such a fund.