Legal Research On The Construction Of The Description Obligations By Financial Institution

Information technology revolution and financial innovation bring the vigorous development of financial industry, meanwhile, Financial products also presents the diversified trends. Due to the professionalism and risk of the financial industry, with the addition of the invisibility of financial goods, financial consumers’ right to know more than ordinary consumers vulnerable to abuse. After the financial crisis, countries began to reflect on the causes of the crisis, as a result, the lack of protection to the financial consumers is the common conclusion. Therefore, countries begin to reform of financial supervision system, with the trend to protecting the financial consumers, especially emphasizes the protection of consumers’ right to know. At the same time, the financial institutions of demonstrative obligation accordingly have increased. As the degree of openness in China’s financial industry is not high and the impact of the financial crisis is unlikely, the idea of protecting financial consumers has not been widespread concern, regulation of financial institutions described obligation is decentralized and general. However, in recent years, the prevalence of improper description made by financial institutions give us a wake-up call, so we have to start thinking about how to regulate these acts so as to effectively protect the financial consumers’ right to know. This article attempts to build a reasonable demonstrative obligation system in our country’s financial institutions, on the purpose of protecting the consumers’ right to know.The first part of this article gives the basic definitions of financial consumer, financial institutions, financial consumers’ right to know and the demonstrative obligation. In this part, the concepts of financial institutions and financial consumers, which related in the article are defined, the financial consumers’ right to know is briefly introduced and the connotations of the financial institutions’obligations to explain, as well as its specific requirements and significance are summarized.Using the improper behaviors existing in the present financial market, including no explanation, false description and improper judgment, concluded that describe the behavior as the breakthrough point, the second part introduces the present legislation situation on the financial institutions’ compulsory rules, and carries on the review. The author thinks that our existing legislation of the financial institutions’explanation obligation defects in four aspects, as follow:the level of legal standard is low; the legal norms are scattered; the laws and regulations are not sound the remedies is lack. This legislation situation leads to the conflict, overlapping of financial regulations and supervision blank, problems such as the financial consumers’ right to know the damaged also get relief. Thus draw the conclusion:the lack of financial institutions’ demonstrative obligation in our country rules caused widespread improper information on the financial market behavior.The third part introduces the legislation of financial institutions’ explanation obligation in the United States, Britain, Japan and Korea. All of the four countries made a horizontal functional supervision to the financial industry, paying attention to the protection of financial consumer and making the detailed rules on the demonstrative obligation of financial institutions, induced fit rules, etc.The fourth part is the author’s recommends to perfecting the rules of the financial institutions’ explanation obligations. This section firstly analyzes the causes that lead to the overlap、the conflict and the blank of the supervision on the financial institutions’ obligation. That is now adopted in our fragmentation patterns of legislation and regulatory. Therefore, the author put forward the proposal, which is to transform our country’s financial regulatory mode and implement lateral functional regulation. However, the foreign experience tells us that it is a gradual process. According to the actual situation of our present stage, the author suggests to set a financial service in the basic law on the basis of retaining the existing legislation framework. The core of the law is to protect the financial consumers, also to unify the service behaviors of financial institutions, strengthening the financial institutions’ demonstrative obligation.As for the construction of a concrete system, it should be similar to the situation of our country for reference and learn to Japan and South Korea whose legislation are mature.