Discussion On The Legal Supervision Of P2P Internet Lending Platform From The Perspective Of Investor Pprotection

In 2007,the first P2 P lending platform of China was born in Shanghai,thereafter it gains rapid development in a few years,and realizes leapfrog development in platform's transaction amount,platform amounts,and platform's participation numbers.In the meanwhile,investor's investing rights and interests are not well protected.Frequently appeared problematic platforms and P2 P platform's secret bad debts make investors face great losses and find it hard to get their loans back.In P2 P internet lending,investors face dual fraud risks from both P2 P internet lending platforms and borrowers,and also credit risks from borrowers,which make investors be situated in an apparent weak position.Investor's information asymmetry position with P2 P internet lending platform and borrowers make them hard to identify and determine risks,and make them hard to make rational decisions under sufficient information circumstance.As a financial information intermediary agent,P2 P internet lending platform is situated in a superior position in many aspects including information collection,information consolidation,information analysis,information manufacture and information publication,which enable the platform to spread false information,conceal adverse information,varnish or even modify information,publicize misleading information,and cause moral hazards,and thus impair investor's benefits and gain excessive benefits.The current laws and regulations of China lack specific regulations on P2 P internet lending,which makes P2 P internet lending basically be in a unregulated status,rights and benefits of investors cannot be effectively protected,and thus they suffer unnecessary losses.For China to effectively protect the rights and interests of P2 P internet lending investors,it shall build a whole set of information regulation mechanism to protect the information rights of P2 P investors.The mechanism shall enable investors to gain sufficient,accurate,and timely information to make financial decisions by constructing information disclosure rules of P2 P internet lending platform,enable investors to understand the risks of financial products and make rational decisions by constructing risk warning rules,and enable investors to gain effective reliefs when violation occurs and give violators effective intimidation by constructing civil compensation systems of P2 P internet lending platform,and therefore effective protect investors' rights and interests in P2 P internet lending.