In recent years, the problem of illegal fund-raising has become increasingly prominent, and the number of cases has risen at a high level. Major cases of tens of billions of yuan, such as e-rental, Pan-Asia and China-Jin, have aroused great concern in society. P2P institutions in Internet finance, especially peer-to-peer lending, have grown wildly, and the problem of illegal operation is prominent, which has accumulated a lot of risks. The occurrence of these risk events is the reality of illegal fund-raising in the name of "financial innovation" and "internet finance".

On April 27th, the State Council jointly organized 14 ministries and commissions to control illegal fund-raising, and announced in Beijing that illegal fund-raising should be severely cracked down and the bottom line of no systematic and regional risks should be firmly held.

To this end, we have made a comprehensive interpretation of the specific measures taken by the party, the Third National Congress and other regulatory authorities in this rectification storm, and presented them in various ways, and will continue to investigate and track the rectification situation in the future.

On the one hand, traditional illegal fund-raising has developed from offline to online, and illegal fund-raising has been carried out under the guise of "financial innovation" on the Internet; On the other hand, the risks of illegal fund-raising in Internet finance-related formats are also fully revealed, among which the risks of illegal fund-raising in P2P field are the most prominent.

On April 27th, the the State Council Inter-Ministerial Joint Meeting on Handling Illegal Fund-raising 14 ministries and commissions announced in Beijing that they would crack down on illegal fund-raising, resolutely curb the spread of illegal fund-raising, and resolutely hold the bottom line of no systematic and regional risks.

According to the statistics of the Inter-Ministerial Joint Conference Office, the number of new illegal fund-raising cases, the amount involved and the number of people involved in fund-raising increased by 7 1%, 57% and 120% respectively, reaching the highest level in the past years. Cases involving thousands of people and raising more than 100 million yuan across provinces increased by 73%, 78% and 44% respectively.

In view of the grim situation of illegal fund-raising, the third meeting of the Party, the Supreme People's Court, the Supreme People's Procuratorate, Ministry of Education, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Commerce and other 14 ministries and commissions jointly stated that they would organize a nationwide special rectification campaign on illegal fund-raising risks in the second half of this year, and conduct a comprehensive investigation on key areas such as private investment and wealth management, P2P peer-to-peer lending, farmers' cooperatives, real estate, private equity funds and other risk points such as private education, local exchanges and mutual insurance.

Advertising management is a means to curb illegal fund-raising from the source. The inter-ministerial joint meeting will organize a national publicity month to prevent illegal fund-raising in May this year. From May to July, we will carry out nationwide actions to investigate and clean up illegal fund-raising advertisements, strengthen the examination and supervision of suspected illegal fund-raising advertisements, and study and strengthen the control of financing advertisements published by emerging media such as portals, Weibo, WeChat, mobile phone clients and Baidu search.

Detection and early warning to achieve "playing early and playing small"

Whether it is all kinds of "running away" events in newspapers, the redemption crisis of financial institutions, or official authoritative statistics, the situation of illegal fund-raising is not optimistic.

Jiang Yongyi, vice president of the Third Criminal Court of the Supreme People's Court, said that criminal cases of illegal fund-raising mainly involved two crimes: the crime of illegally absorbing public deposits and the crime of fund-raising fraud.

According to the data of the Supreme Court, the number of criminal cases of illegal fund-raising in courts across the country has risen sharply, with 2 122 and 4,825 cases of illegal public deposits, 684 cases of fund-raising fraud and10/8 cases respectively. On the basis of a high number of cases received, the number of cases received increased by 127% and 48.83% respectively.

Zhang Xiaojin, deputy director of the Investigation and Supervision Department of the Supreme People's Procuratorate, also said that the national procuratorate * * * approved the arrest of 6,928 criminal cases suspected of illegally absorbing public deposits 1077 1 person, and the number and number of cases increased112.4% year-on-year; 872 suspected fund-raising fraud cases and 12 10 people were arrested, up by 54.9% and 52.4% respectively.

In view of this, the State Council held several special meetings to study the prevention and disposal of illegal fund-raising. On June+10, 5438, the State Council's Opinions on Further Improving the Prevention and Disposal of Illegal Fund Raising (Guo Fa [2015] No.59) (hereinafter referred to as "Document No.59") was issued.

After the publication of Circular 59, it includes 26 key tasks such as industry supervision, monitoring and early warning, publicity and education, and case handling. Defined, which is a programmatic document for all departments to deal with illegal fund-raising.

Circular No.59 further clarifies the responsibilities of various departments, namely, the provincial government is still the first responsible person to deal with illegal fund-raising, and the regulatory departments of various industries assume the regulatory responsibility of preventing and controlling illegal fund-raising in their own industries, and the inter-ministerial joint meeting strengthens organization and coordination.

Circular 59 also emphasizes that all regulatory authorities should follow the principle of linking supervision with market access and industry management to ensure that there is no vacuum in the supervision and prevention of illegal fund-raising in various industries.

For industries that need market access permission, such as banking, securities, insurance, pawn, financing guarantee, real estate, etc. The access supervision department is responsible for "who takes the children away?"

For industries that do not need market access license, but the competent authorities have clear guidance, norms and promotion, the competent authorities will take the lead; Local people's governments at all levels shall organize and coordinate relevant departments to manage industries without competent departments and regulatory departments, such as investment consulting, investment management and non-financing guarantee.

14 ministries and commissions said that they would establish an all-round monitoring and early warning system to realize "striking early and striking small". According to Yang Yuzhu, director of the Central Africa Office, after the document was issued, the Ministry of Public Security, the State Administration for Industry and Commerce and other departments successively started monitoring and early warning work, strengthened the construction of information systems, and improved monitoring and analysis methods; The People's Bank of China and the China Securities Regulatory Commission have successively deployed risk investigation and rectification actions in key industries to prevent and resolve potential risks.

Liu Yunfeng, deputy director of the Bureau of Combating Illegal Securities and Futures Activities of the China Securities Regulatory Commission, said that private equity industries and securities and futures institutions should conduct risk investigation on their participation in P2P business, comprehensively clean up and standardize off-exchange fund-raising activities, and organize special inspections on Internet equity financing platforms.

Wang Zhu, deputy director of the Inspection Bureau of the CIRC, said that the CIRC will organize 12 key areas and 13 key institutions to carry out special risk investigation on anti-illegal fund-raising, focusing on the risk of "elite" marketers and grass-roots executives participating in illegal fund-raising.

Confuse investors in the name of "financial innovation"

Yang Yuzhu also said that illegal fund-raising activities showed an obvious network trend. On the one hand, traditional illegal fund-raising has developed from offline to online, and illegal fund-raising has been carried out under the guise of "financial innovation" on the Internet; On the other hand, the risks of illegal fund-raising in Internet finance-related formats are also fully revealed, especially peer-to-peer lending.

There are two main forms of illegal fund-raising in the P2P field: First, some P2P platforms design the loan demand as a wealth management product and sell it to lenders, or collect funds first and then find borrowers, so that the lenders' funds can enter the intermediate account of the platform, which is actually controlled and dominated by the platform.

Second, the P2P platform issued false high-interest loan targets, and even issued false targets for self-financing, adopting the Ponzi scheme mode of borrowing the new and returning the old, raising a large amount of funds to meet their own capital needs in a short time, and some operators even absconded with the money.

Yang Yuzhu said: "With the help of the Internet, publicity, sales, fund collection and payment will be carried out, and the comprehensive combination of online and offline will be realized, which will make illegal fund-raising spread faster, cover wider, product sales more convenient and fund transfer faster, greatly breaking through geographical boundaries, accelerating the spread of risks and increasing the difficulty of cracking down on cases."

For example, in traditional illegal fund-raising cases, there are many county-level cases, while internet finance completely breaks through geographical restrictions and spreads to surrounding areas and even the whole country by relying on the network. Take the risk events such as "Pan Asia" and "e-rental" as examples, involving hundreds of thousands of people, dozens of provinces, autonomous regions and municipalities directly under the central government, and raising tens of billions of yuan.

Under the banner of "financial innovation", the means of illegal operation and even illegal financial activities of institutions are more hidden and chaotic. Since then, the relevant regulatory authorities have made a risk warning, saying that mutual financial management represented by "MMM Financial Mutual Community" attracts a large number of investors with high returns, and similar virtual financial management such as Baichuan Financial Coin, Quick Coin and "Motifu" have appeared one after another.

In the first quarter of this year, the public security department filed more than 2,300 cases of illegal fund-raising. Zhang Jingli, deputy director of the Economic Investigation Bureau of the Ministry of Public Security, said at the meeting that Internet finance has become a high-incidence area of illegal fund-raising. On the one hand, cases in traditional fields such as breeding, real estate, commodity circulation, production and operation are still frequent; On the other hand, the number of new cases under the banner of internet finance, farmers' professional cooperatives, investment intermediaries, equity investment, tourism, pension, private universities and overseas listing has increased.

In view of this, the office said that it is necessary to use the Internet, big data, cloud computing and other technical means to strengthen the monitoring and early warning of illegal fund-raising.

It is also necessary to play an "outpost" role in monitoring the funds of financial institutions. Most illegal fund-raising needs to be transferred through financial institutions. The inter-ministerial joint meeting requested that all kinds of technical means should be fully utilized, and on the basis of strictly implementing the reporting system of large suspicious funds, the fund movements in various account transactions such as small-scale decentralized transfer to centralized transfer and regular batch transfer should be monitored and analyzed, so as to find and report the illegal fund-raising movements as soon as possible.

Research on Pre-trial System of Financial Advertisement

At present, various financing advertisements, such as investment and wealth management, and wealth management, are confusing. Some lawless elements publish advertisements suspected of illegal fund-raising through newspapers, magazines, radio, television, internet and other media, which encourages illegal fund-raising.

14 ministries said that it is necessary to strengthen the management of advertising information, firmly control the dissemination of illegal fund-raising information, and eliminate illegal fund-raising in the bud. In the next step, the inter-ministerial joint meeting on handling illegal fund-raising will strengthen the management of advertisements suspected of illegal fund-raising.

In accordance with the principle that substance is more important than form, the requirements of financing advertisements shall be strictly regulated, and no false or improper statements shall be made on products and businesses, no promises shall be made for future earnings, and no contents such as capital preservation and risk-free shall be expressed or implied.

While strengthening the supervision of mainstream media advertisements, coordinate relevant departments to strengthen the examination and management of financing advertisements published by emerging media such as portal websites, Weibo, WeChat and mobile phone clients.

The inter-ministerial joint meeting focused on the investigation and rectification of advertisements suspected of illegal fund-raising by emerging media, and strengthened the supervision and management of social media and communication tools such as telephone, SMS and email.

On April 13, the State Administration for Industry and Commerce and other departments 17 issued the "Implementation Plan on Launching Internet Financial Advertising and Launching Special Remediation of Financial Activities Risks in the Name of Investment and Financial Management", and deployed the special rectification of Internet financial advertising. In February, 65438, SAIC cooperated with Publicity Department of the Communist Party of China to draft the Notice on Strengthening the Examination and Management of Advertisements Suspected of Illegal Fund-raising, in order to curb the spread of illegal fund-raising through advertisements.

The State Administration for Industry and Commerce said that from the current regulatory practice, it is difficult to control illegal fund-raising because the information of various departments is not fully enjoyed. On the other hand, the information of relevant investment companies is not disclosed to the public timely, accurately and completely, resulting in information asymmetry and lack of social supervision.

The main manifestations are as follows: First, the pre-approval system for P2P and wealth management by the financial industry authorities has not yet been established, and the market access list and publishing standards of advertisements need to be clarified; Second, illegal fund-raising activities are hidden, and the main contents of many financial investment advertisements are corporate image promotion and brand promotion, which increases the difficulty of advertising supervision and law enforcement; Third, the advertisements suspected of illegal fund-raising in the Internet field spread quickly, widely and illegally at low cost, and the regulatory policies and governance measures need to be further strengthened.

The State Administration for Industry and Commerce said that according to the requirements of the special rectification of Internet financial advertisements, it is suggested that the competent departments of the financial industry should work with the State Administration for Industry and Commerce and other relevant departments to formulate a list of market access for financial advertisements, prohibit negative lists of advertisements, establish a pre-examination system for financial advertisements according to law, and promptly introduce relevant measures.