Consumer Protection Issues. Financial Field Of Study

As the rapid development of financial industry in recent years, more and more people are becoming involved in financial markets, to buy financial products and to enjoy the services provided by financial institutions. These people are lack of necessary financial knowledge, and at the same time, have few accesses to necessary information of financial markets. As result, they are vulnerable to financial agencies relative to all aspects. Different from traditional investors, we can regard them as consumers in the financial markets.However, problems are becoming occurred as well. Consumers suffered the different kind of loss when they bought financial products, such as leakage of personal privacy, assets are secretly diverted for other purposes such phenomena also occur in the financial crisis, fueled by financial institutions and sharpening the contradiction between the consumer and how to protect consumers in the financial area of the legitimate rights and interests, become a top priority.When the financial area of consumer protection issues are proposed, the first need to address is how to define the concept of consumers, what kind of activities are against the consumer, whether the consumer must be a natural person and so on. National legislation has made little direct definition of the practice, but still defines the various forms of the scope of protection, the same as we discussed.how to define the concept of consumer reference. Another issue worthy of discussion that is consumer protection and investor protection, the need to co-exist I believe that although the intersection between the two but there are also many differences, for a more comprehensive and easier to protect their rights by the purpose and provide for the parties Select more relief purposes, the difference between the need to co-exist.For the financial sector, consumer protection issues within the theoretical basis, from a different point of view can be different answers. From a sociological point of view, differences in endowments leads to social stratification, a hierarchical society in order to maintain a fair, you need the protection of tendentious, and consumers and financial institutions just are two different social classes. In terms of economics, information asymmetry lead to market failure, has also led to adverse selection of consumers, resulting in inferior products flooding the market's results, which call for regulatory intervention, both to give proper incentives contract. Taylor's "Twin Peaks" regulatory model is the standing angle of the regulatory system of consumer protection in financial supervision and the need for the position. In addition, we can also consumer protection as in the financial markets to seek a return of consumer sovereignty efforts.In recent years, the world financial consumer protection legislation in both large-scale reform, this article examines the United States, Britain and Australia and their respective financial reform of legislation relating to consumer protection, and even set the national regulatory body system has its own characteristics, some of the advantages, some less, some rely on their traditional country can only work well, the experience of these Western countries, although it can not be applied mechanically, but also useful.In this paper, the end of the financial industry in China are analyzed in the existing institutional arrangements for consumer protection, analyzed the defects and deficiencies, combined with the experience of other countries, put forward some proposals.