Research On The Legal Regulation Of Personal Wealth Management Business Of Commercial Banks In China

Since the implementation of the reform and opening-up policy, the wealth and property income of urban and rural residents have grown rapidly, along with the continuous development of China’s economy and financial market. Financial innovation and the need to preserve and increase value of assets have promoted the rapid development of wealth management business, leading to a broad variety of products offered by commercial banks. However, legal disputes and risks from wealth management products have also been increasing prominently at the same time.Firstly, the paper introduces the concept of personal wealth management business and sorts out wealth management products offered by commercial banks. Meanwhile, related theories are sorted and summed up based on legal attribution and risks of wealth management business. Secondly, the paper analyzes types of banks’ legal risks and relative causes. Meanwhile, by analyzing the legal relationship of banks and investors involved and beginning with legal relationship definition, also combining the current legal status of China’s commercial banks’services, the paper analyzes the major problems existing in legal aspects of the personal wealth management business, and carries on the in depth analysis from three dimensions-supervisor, banks and investors. Thirdly, through the selection of experience in developed market, which includes experience of market development, legal regulations and risk management of USA, Britain and Japan, the paper makes comparison between china and those countries and draws some inspiration. Finally, the paper puts forward the path of legal regulation for China’s personal wealth management business from the aspects of improving legal regulation, regulators and market main bodies. For legislation, the value orientation of protecting the interests of consumers should be established. For specific regulations, the corresponding personal wealth management laws and regulations should be formulated from angles of financial consumers, commercial banks themselves as well as regulators.