On The Construction Of Financial Consumer Protection System In China

Protection of financial consumer has become one target of financial reform which was established by the eighteenth Party congress. The currently limited define to consumers can not protect financial consumers, and specialized financial consumer protection laws are not issued, making the current situation of China’s financial consumers protection very serious. As the information asymmetry financial market, bounded rationality of financial consumers and externality characteristics of financial products, making that it is necessary to protect financial consumer specially. The main problems we facing in financial consumer protection are:poorly defined financial consumer and the rights of financial consumer are not clear, lack of awareness of social responsibility of financial institutions, financial consumer protection agencies’ unclear responsibilities, and neutral court could not protect finance consumer partially. Financial consumers should be treated as a special class of consumers, who enjoy the right of security, privacy, right to know financial information, the right to fair trade, facilitate trading rights and other general consumer rights. In order to protect the rights of financial consumers, we should establish our financial ADR system as soon as possible, especially the FOS system. FOS is a combination of the advantages of mediation and arbitration, but now FOS system is not existed in China. China should establish industry type FOS which is led by the government, stipulate the standards of the case acceptance and handling procedures, and establish integration type FOS when industry type FOS develop to a relatively mature stage.