Research On The Systematic Innovation Of Financial Regulatory Reforms In Post-crisis Era

In2008, the worldwide financial crisis witnessed the problems of the financial system,such as, without proper regulation of financial derivatives, being lack of the adversemechanism of the financial system, daily waking-up of the awareness of the protection offinancial consumers, even the borings and complains of the financial regulatory institutionswhich were criticized for the lacking of information share and coordination mechanism. Since2009, financial reform and law building-up began in west countries such as America, England,France and even the hard-working of the international financial institute, such as the E.U.Meantime in China, there is an obvious trend of expanding complaints, frauds of financialconsumers which requires the innovations of the financial mechanism and the protection offinancial consumers.Besides the Introduction, this paper consists of five chapters.The Introduction briefly discusses the topic and objectives of this study, the current stateof this study in China and America, the theoretical and practical value and methodology ofthe research.The first Chapter focuses on the redefinition of the financial relation. In the traditionallegal mechanism of financial system, there deemed the derivations of legal values and legalrights which created the unfairness of financial market. With a top new view of legal relationsamong the government or the regulator, financial operators and financial consumers, thereform of the traditional leg mechanism requires the balance of different group interestswhich means the regulator should follow the law of the financial market, the financialoperators should bear more obligations in protecting financial consumer’ legal rights. For thesake of regulatory idea, there will be a scientific legal definition of “financial consumers”from the aspect of the Separate-Operation mechanism.The second Chapter surveys different theories meanings of legal values. The conclusion is that the balancing mechanism of different group interests should act an very important rolein the harmonious financial market. Meanwhile, we should build up the express mechanismof the group interest of financial consumers. Substantive justice also plays an important rolein this process of overcoming the imbalance of financial consumer’ group interest. Financialmarket order means the directly limits and constraints of financial operators’ behavior.The third Chapter uses theories of state intervention to explain the power and operationmechanism of the regulator which should be in absorbed in the avoiding financial consumersfrom fraud of financial operators, the abusement of legal right. Executive powers offinancial supervision can be considered in the exercise of the rights of consumers as anindirect protection means, to achieve the norms of the financial markets, to realize a goodenvironment for the rights of consumers, namely the realization of indirect protection of theirrights. So the legal rights of financial consumer should be，the legal right to sign the contactsin a fairly term which means the financial operators are forbidden to add in unfair clauses andtreat financial consumer fairly. The second topic is the issue of confidentiality of consumerinformation, or “financial privacy”. Much of the information concerns loan consumer, it alsomay concern other persons who deal with a financial operator. Generally speaking, financialoperator should protect the confidentiality of a consumer’s records, prevent fraud, or resolvedisputes with consumers.The forth Chapter haves a historic view of the financial crisis in2008. From a criticizingaspect, there is a vibration of financial consumer ‘group interest in government’ bailout,loan-price mechanism and regulatory fees. So, with a review of the Federal Deposit InsuranceCorporation Act1991, there should be a financial risk guarantee mechanism which deems torebuild the credit structure, important financial operators and important financial business. Onthe other hand, financial consumer protection should not only design the system from the setof rights and obligations, but also study essential legislation and the evolution of differentcountry and region with a global perspective.The fifth Chapter discusses the two points in classifying moderation of law and legal location. Far from the developed financial market and regulatory idea to obey law of thefinancial market, there will some hot issues and argumentative issues should be considered inthe reforming and law-building process. This paper argues that in view of China’s financialsector from the current legislation, the reality has shown a unified regulation for universalbanking system, the initial shape, but in a short time to complete unified financial serviceslegislation does not have the practice and legislative conditions. From China’s reality, it isunnecessary to scrap the current Securities Law, Banking Law, Insurance Law and otherexisting financial legislation in order to develop a wide range of financial services form aunified way of enacting the law.