Roof Drainage ?

Brownstoners, I came home from vacation to find the attached gutter system put in my backyard by my developer. Previously, the water from the roof would feed down a pipe and go under the house and into the sewer. In the past, we had quite a few floods in the basement. We also installed a sump pump, but still had some problems. Now, as pictured, the developer moved the roof gutter into the backyard. Question: 1) Is this against code? Massive violation or slap on the wrist? 2) I’m not against having the water go in the backyard to alleviate flooding problems, but this gutter is disgusting to look at. Are there more aesthetically pleasing options? Perhaps a dry-well? 3) Any recommended companies for this type of work? Thank you