Legal System In China Financial Consumer Protection

With the development of financial industry, an increasing number of populace hasinvolved in the financial transactions. Due to the natural asymmetric information in thefinancial markets as well as the lack of the financial knowledge to themselves, thedissension broken out between the both sides of financial transactions increased in the pastfew years. The supervisory objectives under the model of separated regulation attachedimportance to prudential supervision. As a result, the protection on financial consumer hadto stay in a secondary position for long. After the financial crisis in2007, countries throughthe whole world had taken to rebuild a system of financial regulation that would givehigher priority to protecting consumers. In China, the financial innovation made theidentity of consumers becoming increasingly blurred. It makes no senses anymore todivide these consumers with the traditional thinking. Under such circumstances, the notionof financial consumers can exactly replace what we adopted in the past. This paper basedon the reality of Chinese legal system, focuses on the topic of financial consumerprotection, conducted firstly systematic research in some important issues of financialconsumer protection in main developed countries and at the end, put forward thesuggestions of building our country’s financial consumer protection legal system.This paper is divided into four sections:The first Section: overview of financial consumer protection. This part is the basis ofthe dissertation, which proposed to determine the legal concept of financial consumers isthe premise of legal protection of the financial interests of consumers, and then defines theconcept of financial consumers, financial transaction subjects of rights and obligations.The second Section: the present situation of China’s financial consumer protection.This section based on China’s financial consumer law protection of social condition,organization construction present situation, analyses the current situation, and puts forwardthe main problems existing in the legal protection of financial consumers in China.The third Section: reference of the financial consumer protection legal system in somecountries (regions). In this part, we expect to get some enlightenment through the analysisof the legislative reform which aiming at the financial crisis in UK, USA, Japan andTaiwanThe fourth Section: the perfection of the legal system for financial consumerprotection. The proposal, which contained the legislative construction, organizationconstruction, the information disclosure construction and the perfection of reliefmechanism, will be given in order to improve China’s financial consumer protection legalsystem.