Analysis On Commercial Banks "Bootleg Financial Products Event"

Commercial Banks "Bootleg Financial Products" is not a legal concept. It is, rather, a popular term for certain types of cases in the financial industry and commercial banking. This applies to employees without legal approval procedures, unauthorized sales agents without proper induction of sales channels in branches, and other non-agents related to the Bank or consignment of the financial products. Commercial bank financial products is defined as "the personalized product commercial banks design and sell to a specific client to develop capital investment and management plans." Sales of legally compiled financial products are subjected to the approval of the parent company or designated retailers, but "Bootleg Financial Products" has yet obtain relevant approval by the parent company. It also lacks financial risk assessment. Customs who paid for the "Bootleg Financial Products" should assume more risks and it is easy to cause dissension in practice.In this paper, the "Bootleg Financial Products" case involving the Huaxia Bank in 2011, Huarong Chuanmei magnesium corporation and OCBC in 2013 and other cases are thoroughly analyzed and researched. Causes, forms and other legal dilemmas are explored. This is conducted in response to civil law, criminal law, administrative law and other form of legal literature measures, aiming to further explore the legal strategies. Through research, it is found that there are multiple legal issues involving "Bootleg Financial Products". The problems of apparent agency and the validity of the contracts of "Bootleg Financial Products" are discussed under civil law. Then the other issues are focused on criminal law, namely crime and not crime, this crime and those crimes. In the aspect of administrative law, the main problem is the absence or overlap in financial supervision (People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission)The focus of these legal issues constitutes a major problem in this paper. For a more comprehensive understanding of "Bootleg Financial Products" phenomenon, the author has taken an argumentative style of writing; Analyzing and criticizing the existing issues and controversies. Legal disputes are analyzed from different angles and viewed individually. Cases are used for discussion purposes, for example, civil laws on private lending, disclosure obligations and reporting standards, cyber security with regards to information safety. Subsequently this raises the standard of criminal law through focusing on the protection of consumers of financial products; Re-examine the law on administrative supervision of the internal system and explore a new model of holistic supervision.