A Legal Study On The Retail Sale Of Financial Products Of Commercial Banks

With the increasing demand for personal investment and the development of commercial banking retail business, a large number of financial products flow into the hands of individual investors through retail channels. On the other hand, the financial innovation has also multiplied the risk behind the products. The misleading statements and blind recommendations in the sale process often cause huge losses to individual investors due to the inappropriate financial products. The traditional concept of"caveat emptor"is challenged, and the national system designers begin to concern the sellers'responsibility.In this paper, there are three chapters as follows:The first chapter gives a general analysis of commercial banking retail business. The conceptions and characteristics of financial products and financial consumers are the basis for further analysis below. In addition, this chapter also set out the issues through the analysis of the case as"Jinxin trust".The second chapter gives an analysis of commercial banking retail business from a legal perspective. Through the analysis of the legal relationship between the bank and the individual investors in the sale process of different business categories, this chapter aims to access whether the existing legal system could offer adequate protection and relief to the individual investors.The last chapter puts forward the proposals from the perfection of legislative protection, financial consumer protection agencies and out-of-court disputes resolution mechanisms, with the emphasis on the improvement and perfection of the information disclosure system, investor suitability and the civil liability of the bank for mis-selling activities.