The Protection Of Financial Consumer's Right To Information

With the development of our financial industry, more and more categories of financial products and services come out in the market. To satisfy their diversified consumer demand, a lot of people begin to buy the innovative products provided by financial institutions. Compared with traditional consumption, financial consumption is a kind of consumer profile with higher gradation and level which endows consumers'right to information new characteristics. Firstly, as the object of financial consumers'right to information, financial product information is so complicated that the problem of asymmetric information in the field of financial consumption becomes more serious. Secondly, as one of the subject of a duty of financial consumers'right to information, financial institutions are in the monopoly situation. On the contrary, as the subject of the right, financial consumers are in a vulnerable position, which makes legal status between vendor and purchaser more unequal.These characteristics represent by consumers'right to information in the filed of financial consumption bring new challenges to the protection of the right. In China, the cases of violating consumers'right to information in the financial filed happens frequently in real life and it reflects that there are a lot of disadvantages on the protection of financial consumers. Mainly reflect in: A, the standard of information disclosure should be improved and there is no effective statute on the degeneration of financial institutions. B, the current supervision mechanism may lead the emergence of regulatory gap and supervision overlapping, the supervisory board doesn't shoulder more responsibility of educating financial consumers and there is no specialized protection mechanism on financial consumers. C, financial consumers cannot give proof easily in the judicial proceeding and there is no the mechanism of small claims .To strengthen the legal protection of our financial consumers'right to information, we should establish the fundamental principles of gradient protection, general protection and appropriate protection. Then drawing on the experience of external existing related system and put forward specific perfect measures in the following three aspects. The firstly, in the aspect of legislation, we should enact regulations on information disclosure which can satisfy consumers'demand, establish regulations on financial institutions'civil liability to consumers when they don't carry out obligations of disclosing information and revise the Law on the Protection of Consumer Rights and Interests without delay to add more contents on the protection of financial consumers. The secondly, in the aspect of financial supervision, we should improve the custodial model to layout institutional and functional regulation and we should require the supervisory board shoulder the responsibility to educate financial consumers and set up specialized mechanism to protect financial consumers. The thirdly, in the aspect of judicial remedy, we should implement the reverse of proving obligation, set up legal system of small claims to solve the problem of diseconomy of lawsuit and draw into class suit in the reasonable range.