Study Of The Legal Riak Of Financial Products In Chinese Commercial Banking Industry

recent years With the sustained and rapid economic growth, the Residentsincome has been rapidly increasing, financial and investment will continue toenhance our financial market is a booming trend. However, compared with othermature market countries, the wealth management market in China started late, therelevant laws and regulations are lagging behind, investor self-protection awarenessis relatively weak, Legal disputes on financial products occurred frequently,andthese legal risks seriously hindered the healthy and rapid development of China’scapital market. With macro perspective, the legal risks not only hinder the sustainedand healthy development of China’s financial products, thereby affecting the stabilityand prosperity of China’s capital market; with micro perspective, it will makeinvestors and commercial banks facing more uncertainty. Increasing disputes andcontroversies increase transaction costs, but also contused the confidence ofinvestor,therefore, the analysis of the legal risk of financial products is prettynecessary.Increasing legal disputes to a certain extent due to the particularity andcomplexity of the financial products, however, the imperfect of laws, fuzzy of legalrelationship of financial products and awareness of risk prevention is thefundamental problem. Our study should start in the relationship of financial product,and then analyze the legal risk of the underlying causes and preventive measures onthis basis. From the current academic circles the studies on the legal risk of financialproducts are not much to see. And there are much inadequate in our studies, stillneeds further study. This paper analyzes the causes of the legal risk detailedly on thebasis of the related research, using a variety of research methods to study of the legalrisk of financial products, and put forward the policy suggestions to guard againstlegal risk. This paper first defines the concept and features of financial products, pointedout that in the analysis of the legal relationship of financial products should beanalyzed according to its characteristics, and then divided their legal relationshipinto three types to study respectively. The end discuss the legal risks from the twoperspectives of investors and commercial banks respectively make up for the lack ofprevious research. The article also draws on developed countries and regions, suchas the legal system of the United States, Japan, Hong Kong Commercial BankFinancial Services analysis and research, and draw inspiration for our country. Theend of this article the characteristics of China’s regulatory system for financialproducts market situation and future trends, respectively, from the three angles of thelegislative institutions, commercial banks and investors measures and policyproposals of the parties to respond to the legal risks should be taken in order to bettergood control of the occurrence of legal risk, to create a healthy and stableenvironment for the development of the wealth management business of commercialbanks in China.