Research On The Appropriateness Obligation Of Commercial Bank In China

With the development of economic globalization,the financial market in China is becoming increasingly mature and financial products are constantly innovating and emerging.Today,commercial bank wealth management products have become the best choice for most people’s investment and wealth management.However,with the release of the " Guiding Opinions on Regulation of Asset Management Business of Financial Institutions " in 2018,the rigid redemption mechanism of commercial bank wealth management products was also broken,and wealth management products no longer have bank funds as a "backstop",leaving investors exposed to product risks.In order to protect the weak position of investors in transactions and balance the rights and obligations of both sides of the transaction,China has introduced the commercial bank’s Appropriateness Obligation rules,which regulate improper sales behavior by commercial banks and protect the legitimate rights and interests of investors.This paper reanalyzes and elaborates on the basic connotation and theoretical basis of commercial banks’ Appropriateness Obligation on the basis of the “The Summaries of the National Conference for Work of Courts on the Trial of Civil and Commercial Cases”,in an attempt to construct a theoretical rule system suitable for China’s national conditions.In this paper,the author used literature study to summarize the latest theoretical achievements at home and abroad.The author also used empirical study to investigate the sales process of commercial banks’ asset management businesses and summarized typical judicial cases from the China Judgements Online.Furthermore,the author used comparative study to compare the legislative paths of asset management businesses at home and abroad.Combining the author’s own work experience in commercial banks,a detailed analysis was conducted on the legislative and judicial status quo of the Appropriateness Obligation of commercial banks in China,and various problems were identified,such as low hierarchical legislative norms,unclear legal liability,and unclear exemption clause rules.Corresponding improvement suggestions were proposed in the later part of the paper.The innovation of this paper lies in the author’s firsthand experience as a former frontline employee of a commercial bank,who has a deep understanding of the practical needs for protecting investors in a vulnerable trading position,as well as the increasingly cumbersome business processes and growing operational pressures faced by commercial banks.Against the backdrop of legislation that tends to fully protect investors,this paper proposes an Anti-tilt protection mechanism for commercial banks,which balances the rights and obligations of both parties in the transaction by establishing a hierarchical management system for investors and a hierarchical management system for sales of financial products.By reducing the operational pressure on commercial banks,they can focus on taking care of vulnerable groups and preventing the Appropriateness Obligation from becoming an " ironclad shirt" used by some investors to evade responsibility and avoid risks.This is also a reflection of the legislative spirit of "sellers taking full responsibility,buyers taking self-responsibility" in the " The Summaries of the National Conference for Work of Courts on the Trial of Civil and Commercial Cases".Finally,this paper lists the corresponding suggestions to improve the regulatory framework of commercial banks’ Appropriateness Obligation rules in China,These suggestions include elevating the level of legislation,refining system provisions,clarifying legal responsibilities,and establishing exemption clauses,among others.It aims to comprehensively regulate the improper sales practices of commercial banks,implement the legislative objectives of Appropriateness Obligation,cultivate mature financial investors,and promote the stable and healthy development of China’s financial market.