On The Legal System Of Financial Consumers’ Right To Know

With the development of the financial market, there are increasingproblems of the protection the financial consumers’ right. In the currentrights system of financial consumers, the financial consumers’ right toknow is fundamental, which also guarantees the realization of other rights.However, the monopoly position of the financial institutions and theserious information asymmetry between them and financial consumers leadto the weak position of the financial consumers. And that makes theresearch on financial consumers’ right to know necessary.But in the current legal system of China, financial consumers’ rightto know is not prescribed as lawful obligation of financial institutionsand relative regulations are scatted in many different laws, and have verylow legal effect. All these defects make it badly in need to improve andperfect the legal protecting system of financial consumers’ right to know,so as to protect their legitimate rights and interests.The article consists of three chapters as follows:The first chapter discusses the theory of the protection of financialconsumers’ right to know. Initiated from the traditional concept ofconsumer, this chapter proposes the concept of financial consumer anddefines it as the individual financial behavior for basic financial needs. From the content and characteristics of financial consumers’ right toknow, this chapter points out that financial consumers’ right to knowoccupies the fundamental position of financial consumers’ rights system,which guarantees the realization of other rights. Meanwhile, this chapteralso analyzes the necessity of protecting the financial consumers’ rightto know from pointing out the monopoly position of financial institutionsand the serious information asymmetry between them and financialconsumers.The second chapter discusses about the principle of adaptation andthe duty of disclosure, which make up the two mechanisms of the protectionof financial consumers’ right to know during the process of promotingand sailing financial products and services. Also since the riskcharacteristics of financial products, to establish and perfect the riskalert system is especially important. By analyzing the concept, exceptionmatters and legal obligations of the principle of adaptation and duty ofdisclosure, and learning from the relative regulations in the law of theUS and Japan, to better protect the financial consumers’ right to know.The third chapter firstly introduces the principle of adaptation andduty of disclosure in the current legal provision in our country and pointsout the defects of relative regulations like low legal hierarchy, scattedin different laws, and not prescribed as lawful obligation of financialinstitutions. Therefore, by learning the relative experience from the US,Japan and Taiwan province, this thesis proposes the suggestions onimproving and perfecting the legal regulations of protecting financialconsumers’ right to know, which includes improving and perfecting thelegal system of adaptation, duty of disclosure and building a connectionbetween the principle and duty.