| Through several years of development,financial consumer market in China hasbecome an important part of national economy. In pursuit of interests,a wide range ofpeople involve in financial consumption,and the financial institutions in their owninterests abandon ethical business conduct against the relative equity.Compared withfinancial institutions in strength and expertise overall,even if financial consumerssuffer losses due to the practitioners’ misconducting,with subjective and objectivefactors,financial consumers can hardly protect their legitimate rights through legalprocess.This would throw a bad effect on the development of financial market.Theprotection of financial consumers should be established as a priority.From the perspective of protecting financial consumers,impose a legal obligationon financial institutions could be a better way.Those legal obligations on the behaviorof financial institutions practitioners are obligation of appropriateness,obligation ofexplanation,obligation of recommendations.Obligation of appropriateness based on the reliance between the financialinstitution and the financial consumers,is originally from the American Securities Actto protect the financial consumers’interests.Before establishing contract,practitionersshould give a fully explanation of the content,information disclosure,riskwarning,assessment of the adequacy of financial and other consumer goods orservices.However, the U.S. and European law confuse the concept of obligation ofappropriateness with other obligations.Within China,these concepts need to bedistinguished.Obligation of explanation means the practitioners should fully disclose the risksof the financial consumption to the degree that financial consumers could fullyunderstand. The content should include but not limit to transaction costs, possible benefits, potential risks and other important financial issues. The detail should beregulated by law.Referring to the interpretation and practice of Japanese law,therelationship between the obligation of appropriateness and obligation ofexplanation,the border between obligation of explanation and financial consumersown responsibility can be distinguished.Obligation of recommendations is not equal but a supplement to the obligation ofappropriateness,which could prevent the scope of obligation of appropriateness fromexpanding. |
