The Research On The Duty To Communicate In The Sale Of Financial Products From Commercial Banks

Thanks to the wide choice of wealth management products whichprovided by commercial banks, many people with an ordinary income areable to benefit from the financial market. However, lacking knowledgeand experience, investors usually suffer from unidentified risks or lost inthe promotion by banks. Although CBRC had set detailed rules, whichrequire banks explain the product and warn riskswhen selling financialproducts. But there was no specific criteria, and no relief to investors asan inferior document. It also become a problem at court, for there is noguide on whether the bank has fulfill the obligation or not. This article istrying to refer cases of advanced legislation of western country. So toexplore the basis for the obligation of its standards in practical operation, and provide a humble suggestion for establish a criteria on obligation ofthe bank in selling financial productThis article start from the analysis of the description of the obligationsand judicial views on the problem.Then, based on the provisions of theCBRC, the article tries to point out the problem in the current rules of theduty to explain. In the third chapter, the paper introduces and reviews theUnited States and Japan in the legislative and judicial practice on theevolution of instructions obligations. Finally, combining thecharacteristics of China’s financial market, proposed criteria of fulfill theobligation.The author believes that, to ensure the fulfillment of the obligations.Ensuring the understanding of investors is the key; banksshould provideoral answers and statements supplement to submitting documentation;forthe content, a rule consisting details of the process should be built; also, acombination of graphic should be used to ensure that investors receiveadequate information, and have a reasonable basis and objectiverecommendation before signing the contract.