The Research On The Legal Issues Of Client Funds Depository For Internet Finance Platforms

In recent years,with the further development of the Internet and the increasing popularity of financial disintermediation,Internet finance is rising rapidly,finally evolving into a national financial phenomenon,and becoming one of the most popular financial topics.But on the other hand,due to lack of regulation,the development of Internet finance industry has been presenting a characteristic of "the good and bad are mixed,mud and sand flow together".Some Internet finance platforms defraud client funds under the guise of high interest rates,such platforms usually attract clients to invest by giving false promises on high interest rates,and then steal client funds to their own pockets quietly,such individual clients wouldn't find themselves cheated until the platform's website couldn't open anymore.Thus,the safety of client funds for Internet finance platforms has become a regulation and practical subject,with its reality and high urgency.In contract law,the author thinks,the behavior of such platforms to receive clients' prepaid-funds could form safekeeping contract legal relationships between such platforms and clients.Under such safekeeping contract legal relationships,the right of possession of prepaid-funds will be transferred to such platforms,at the same time,such platforms will undertake the obligation to properly keep and return clients' prepaid-funds after the contract expires.From the view of regulatory,the author thinks that: firstly,the beneficial ownership of prepaid-funds shall be reserved by clients,thus such platforms shall have no authorization to exercise the right of make use and deposition;secondly,bank depository is helpful to protect client funds from being embezzled by such platforms,thus it is a relatively feasible ways of supervision,but there are still some problems in need of improvement.