Foreign Financial Product Related Studies

Accompany with the economic growing and financial market developing, there is a vast demand for personal wealth management. It is a trend and also inevitable in financial market reform. Due to its high profits and the traditional banking business sectors stating in a relative saturation, wealth management market is filled with so many commercial banks. Almost all of them want to grab a margin from this specific area, which at the same time leads to a flourishing market.Since wealth management market is such a new area, it is lacking of regulations to be complied with. Without regulations, the market has many problems, such as competition disordering, investors could not be well protected etc. In2008, during the financial crisis many domestic investors suffered a devastating loss through their investment in a wealth management product named Knock Out Discount Accumulator which is sold by commercial banks in Hong Kong. Although they used different ways try to reclaim their loss, it seemed like not that easy.This article focuses on some issues refer to contract of personal wealth management product. Through analyzing the features of financial derivatives and accumulator, the moral risk of personnel in private banking and its prevention, risk management of the investors, overlap of liability for breach of contract and liability for tort and jurisdiction of the court, trying to find a way for a better protection of investors and a better development of the wealth management market.