Study On The Legal Issues Of Internet Financing

Under the circumstances of vigorous prosperity in internet finance,internet financing provides a new solution to the residents' need of financing.But it has to be cleared that the varieties of internet financial products owe to the appearance of operation types in the internet finance area which attracts attention of investors.Actually,these internet financial products have been packed by the methods of financial innovation and sold on the internet platform but the investors could only get the information of profits.Consequently,they shall ignore the essential risks of internet financial products.Therefore,in this paper,after the type analysis of the essential transaction structure of internet financial products,legal issues contained could be found out in many aspects: the private placement was split to sell and converted into disguised public placement;de-normalized assets were operated by quasi-ABS(a measure of resemblance to asset-backed securitization)and the risk has been transferred to the investors;regulatory arbitrage was chased by means of multilayer nesting and cooperation with local financial exchange;and capital pool was illegally set up etc.Besides,the subject of some internet financial products has not a clear legal nature and some basic legal relation are unclear.After the reorganization of these legal issues in internet financing,this article analyzed causes of these legal issues in theoretical,practical and judicial aspects in order to specify the fundamental cause of these legal issues.In the theoretical aspect,there exists diverse opinions to the legal nature of the subject of some internet financial products.And some financial innovation operation would be illegal in the practical aspect.Furthermore,the justifications of identification of some internet financial products could not reach an agreement.In the last chapter,this article presents some targeted suggestions after combing the entire regulation path of internet financing.It is important to point out that the innovation of this article is not onlycombing the essential transaction structure of internet financial products and pointing out the legal issue by the means of structure chart which is trying to completely cover all forms of internet financing products,but also exploring the essential cause of these legal problems in these aspects,which including the theoretical disputes,practical contentious operations and judicial inconformity of legal nature identification of internet financial products.In addition,the innovation also contains the targeted suggestions which includes explication of legal nature of internet financial products,establishment of financial innovation boundary,enhancement on the penetrating regulation,rearrangement of cooperation with local financial exchange and improvement of investor protection etc.that might contribute subservience to the optimization of regulation in the internet financing area.