A Study On The Bank’s Fiduciary Duty In Personal Financial Services Of Commercial Banks

In recent years, our national economy is developing rapidly, and people enjoy a higherstandard of living. Based on this, the commercial banks have provided personal financialservices effectively. In the case of commercial banks, the personal financial serviceis becoming one of the important intermediary businesses, and provided a lot of profits.However, because of the complex design of financial products, the lack of risk disclosure inthe propaganda, the misfit of target customer, the financial disputes occur frequently. But inthe process of resolving disputes generally due to the absence of relevant legislation,the vagueness of laws and rules and the ill-defined relationship between banks and financialconsumers, make it difficult for the financial consumers claim their legitimate rights andinterests. Under the circumstance of asymmetric information, the financial consumers as theweak should receive special protection in the process of financial commodity trading.Nevertheless, by organizing recent financial disputes cases, everyone can find out that thefinancial consumers ended up with failure in almost all the cases.The situation of theprotection of financial consumers’ rights is so worrying. To this article, the real legalrelationship between banks and consumer finances is a fiduciary relationship in the bankingfinancial services. The trust legal system can be tried to use to regulate the relation of rightsand obligations between commercial banks and financial consumers. And strive to constructour national commercial bank’s fiduciary duties in the field of personal finance, in order tosafeguard the financial consumers’ legitimate rights better.This paper divides into four parts:In the introduction of article, the author explains the choice of the origin and backgroundof the topic, and then summarizes the current research status of the topic. Then it is introducedthat the research purpose, theoretical significance and practical value, the research methodused in this paper. At last, on the basis of the research from many experts and scholars,according to the actual situations, the author summed up the innovation of this paper.The first part: Point out the problem. This part the author summarizes the trial ideas inthe judicial practice of the court on the financial disputes through the analysis of the twojudicial precedents. The root of financial consumers’ legitimate rights is not duly protected ispointed out, which is the ill-defined relationship between banks and financial consumers. The rights and obligations of the two sides are unbalanced.The second part: Discuss the legal character of the personal financial business ofcommercial banks. This article reviews various views on this issue. On that basis, bycomparison of the three principles of trust relation, they analyze the bank personal financialmanagement services, and conclude the essence of trust.The third part: Fiduciary obligation is the method to balance the rights and interestsbetween both parties. This section will give an in-depth demonstration of laws and regulationswith regard to balancing the rights and interests between both parties. By starting with thecontent of fiduciary obligations and applied standards, they come to the conclusion that it isthe commercial banks who shall assume the fiduciary obligations in the financial services.The fiduciary obligations imposed upon banks are to balance the virtual status betweenfinancial consumers and banks in the financial services, which is an essential measure toachieve fairness and justice.The forth part: Construct our national bank’s fiduciary duty. This section will integratewith features of the financial products and markets, specify and make certain of the fiduciaryobligations under the guidance of the concepts of fiduciary obligations, and improve the civilliability for damage caused by the commercial banks in breach of the fiduciary obligations,which will provide measuring standards for the court and supervisory agencies on whethercommercial banks have completely honored their obligations.