Research On Contracting Explanation Obligation Of Financial Service Providers

With rapid development of modern economy,the times of financial commodity consumption has come to our daily life.Due to informativity,complexity,diversity characteristics of financial commodity,the relationship between financial service providers and consumers is in a state of remarkable information asymmetry.Nowadays,the rights and interests of financial consumers have been frequently infringed seriously in practice by means of exaggerating expected return,concealing investment risk,misleading propaganda,violation commitment,etc.Therefore,during the contracting phase,financial service providers should assume legal obligation of necessary explanation to consumers about their products and services to protect the weak information position of consumers,which can guarantee fairness and justice of financial commodity transaction as well.This paper defines the meaning and analyses legitimacy foundation of financial service providers' explanation obligation in contracting phase by focusing on financial commodity transaction in three fields:financial commodity,financial service providers and financial service consumers.By examining legal innovation of modern mixed financial operation in some major countries and districts,this paper then summarizes common legislation experience on explanation obligation of financial service providers during contracting phase.On the basis above,this paper further discusses basic scope of explanation obligation in both positive and negative aspects:how to define scope of explanation obligation by interest balance principle in details,how to propose performance requirement of explanation obligation and how to determine negative obligation of financial service providers' explanation during contracting phase.And then this paper defines legal responsibility of violating explanation obligation and concludes that financial service providers who violate explanation obligation should take the special responsibility consists of no-fault responsibility principle and the conversion for burden of proof.Finally,this paper discusses path selection and legislation induction of Chinese financial service providers,explanation obligation institution.