Proposals on improving Russian legislation in the field of mutual lending (crowdlending)

Introduction. The article defines and classifies crowdfunding (collective financing), defines the relationship between such notions as crowdfunding and crowdlending (mutual lending). It considers the issues of mutual lending between individuals, the legal aspects of mutual lending between individuals. The Russian Law № 419090-7 “On alternative ways of attracting investment (crowdfunding) “ is analyzed.

The paper offers proposals to improve legislation in order to develop crowdlending relations where borrowers and investors are individuals as well as different possible measures to enhance the effectiveness of mutual crediting.

Materials and methods. The methodological basis of the research consists of the following methods: general scientific methods, such as analysis and synthesis, induction and deduction as a whole, analogy, and special scientific methods, such as a method of comparative law and a method of complex research.

Findings. As a result of the research, several of the most common crowdfunding classifications are considered. It has been revealed that crowdfunding is a more general concept, crowlending is one of the forms of crowdfunding. It is proposed that specific measures should be taken to improve the legislation of the Russian Federation in the field of mutual lending (crowdlending), such as:

1. to include the definition of the concept of mutual lending between individuals in the crowdfunding bill;

2. to provide operators with access to the credit history bureaus and enable them to make and receive records; to improve existing legislation for these purposes;

3. to keep in the Central Bank of the Russian Federation a separate registry with minimum requirements for bona fide operators working in the sphere of mutual lending with individual borrowers and investors;

4. to enable operators working in the sphere of mutual lending with individual borrowers and investors to open nominal accounts, that is to add a clause to the draft law or issue instructions from the Bank of Russia to banks obliging them to open nominal accounts with such operators.

Conclusions. The adoption of proposed measures will make it possible to increase effectiveness of mutual lending (crowdlending) as an alternative way of attracting investments.

1. Bichkov A., 2016. P2P-kreditovaniye [P2P-lending]. Gazeta "ezh-Urist"[Newspaper "ezh-Lawyer"]. № 28.

2. Kuznetsov V.A., 2017. Kraudfunding: aKtualniye voprosi regulirovaniya [Crowdfunding: current regulatory issues]. Dengi i credit [Money and credit], № 1.

3. Boitan, A., 2016. Crowdlending and Financial Inclusion Evidence from EU Countries. Economic Alternatives. Issue 4.

4. Delivorias, A., 2017. Crowdfunding in Europe - Introduction and State of Play. European Parliamentary Research Service.

5. Gabison, G., 2015. Understanding Crowdfunding and its Regulations. Joint Research Center Science and policy report. Luxembourg: Publications Office of the European Union.

6. McMahon, R., Bressler, L., Bressler, M.S., 2016. New global cybercrime calls for high-tech cyber-cops. Journal of Legal Ethical and Regulatory Issues. No. 19(1).

7. McMahon, R., Pence, D., Bressler, L., Bressler, M.S., 2016. New tactics in fighting financial crimes: moving beyond the fraud triangle. Journal of Legal Ethical and Regulatory Issues. No 19(1).

8. Rohrmann, C.A., Cunha, J.F.S.R., 2015. Some legal aspects of cloud computing contracts. Journal of International Commercial Law and Technology 10(1).