The Rule Of Law To Improper Sales Practices Of Financial Products

With the sharp increasing in recent years of awareness of national investment, and the gradual development of the investment market, financial products gradually turn to be familiar. In particular, in 2007 and 2008 during the hot domestic stock market, various financial institutions competed to come up all kinds of financial products. For a time, all the people to an unprecedented degree of financial development.The existing law there is no uniform definition of financial products and strict classification criteria, resulting in a dazzling display of wealth management products lack a clear legal boundaries. Financial products for sound and accurate classification, is to study the basic premise of financial products, but also the implementation of different financial products sales of regulated basis. According to different characteristics between products and the legal relationship that can be right financial product for a certain classification.Because a number of sales organizations and practitioners to our financial products, the quality of mixed and improper sales practices not uncommon. Improper sales practices commonly include: exaggerating the product yield or committed capital preservation, false advertising, to conceal the true nature of the product to the risk tolerance of investors in weak sales of high-risk derivatives and so on. Among them, especially in false propaganda and non-customers to the appropriate sales are the most common and most difficult to regulate improper sales practices.From the perspective of economics and legal theory, the root causes of mis-selling of financial products is asymmetric information, the information disclosure system deficiencies and inadequate supervision of the legal system and so on. After long-term development, as the mature markets of the developed countries, financial markets, the regulatory system for financial product sales have a better legal system and institutional construction. In particular, Hong Kong, Japan and the United States financial legal system, there are a lot learn from them.Based on the current financial product sales of China's behavior problems, learning the norms of foreign mature markets, as well as domestic existing regulatory system, I propose to build a system from a number of areas to regulate sales practices, financial product sales to achieve the sound development of the market.