Research On The Standard Of Investors Suitability System In Equity Crowdfunding

Equity crowdfunding,as a new type of financing product,is a low-cost,high-efficiency financing model for small,medium and micro enterprises,it is a low-threshold,high-return investment option for investors.It injects fresh blood for the financial investment market,which can strengthen the capital liquidity and promote the efficient allocation of capital in the market.However,due to the late introduction of equity crowdfunding in China,it is relatively immature in investor protection legislation,and the correlative appropriateness system for equity crowdfunding investors is even more absent.The popularity of equity crowdfunding also leads to the problems of regulatory confusion and the shortage of systems.As the top priority of protecting investor rights and interests,the system of investor suitability has rich practical results abroad.China also has relevant regulations in the national small and medium sized enterprise share transfer system,GEM,banking,and insurance industries.Based on the research results at home and abroad,this paper analyzes the differences between the equity crowdfunding market and the traditional financing market,based on the rationality of the fiduciary obligation theory applied to the equity crowdfunding field,combined with the characteristics of the equity crowdfunding feild,and appropriate for equity crowdfunding investors,discussed the appropriate standard of all aspects for the inventors.The main contents include the crowdfunding platform's obligations of understanding information to customers,information management obligations,the obligation to conduct different management of customers and provide different services,and the obligation of supporting information disclosure for financing companies.At the same time,it puts forward to establishing and investor quota system and multi-level information disclosure system,improved the rights relief mechanism recommendations for the investors in national equity crowdfunding.The first part of this article is introduction,including research value and significance,literature review.The second part of this article introduced the product of equity crowdfunding firstly,which is the background of Internet finance.Through the determination of the concept of appropriateness of equity crowdfunding investors and the analysis of the status quo of equity crowdfunding supervision,proposed that there is a theoretical conflict between the investor's suitability system of the existing equity crowdfunding and the business itself,the existence of too high standards,and the lack of supervision in practice.The third part of this article analyzes from the perspective of the market.The comparison between equity crowdfunding market,public offering market and non-public issuance market includes the differences among investor groups,information asymmetry level,issuance methods,companies participating in financing,and information disclosure requirements.It is concluded that the equity crowdfunding market should make reference to the standards of the mainboard market to formulate a‘Know Your Customer' standard and establish a ‘Know Your Product ' standard that is stricter than the new board market.The fourth part of this article analyzes from the perspective of internal logic.By reviewing and reflecting on the theoretical basis of the traditional investors' suitability system,this paper demonstrates the rationality of the application of the fiduciary standard in the appropriateness system of equity crowdfunded investors.The fifth part of this article is based on the previous discussion of the criteria for the appropriateness of equity crowdfunding investors,and put forward their own views on the construction of specific standards for the appropriateness of investors.The content includes the content standards of the crowdfunding platform for customers,understanding methods standards,information management standards,standards for differentiated management of customers,information disclosure standards of equity crowdfunding platforms,supporting information disclosure standards for financing companies,and risk warning standards.In the sixth part of this paper,the author proposes the establishment of investor quota system,establishment of multi-level information disclosure system,and improvement of the right relief mechanism for institutional innovation at the regulatory level.