Research On Description Obligation Of Commercial Bank's Financial Products Sales

With the increased concerns about the wealth management,the ordinary residents of China have gradually established the concepts of financial management,which continuously expands the demands for financial investment.Since the beginning of 2004,the issuance of money amount,type,and scale of financial products for commercial banks are on the rise,including sorts of complex structural financial products.However,we should also notice that the rapid development of financial market is followed by a variety of financial disputes.The fact of financial constantly crisis is that the bank in the sale of financial products did not fulfill appropriate description obligations.As the seller of financial products,banks are the dominant one in the financial products trading and financial products are always complicated and hidden a certain risk,so it's difficult for common consumers to master.Therefore,banks should be forced to describe the obligations in the financial transactions to compensate the imbalance of rights and obligations caused by information asymmetry.At present,China's current legal system lacks clear provisions on the description obligations of banks,and the judiciaries haven't established a unified judging standard for the bank's description obligation,this lead to the damages of financial consumers cannot be effective helped.In view of this,the main line of this article is bank financial products sale's description obligations.Here are the following discussions:This article demonstrates the area of interest in four different parts in addition to introduction and conclusion.The first chapter starts with the definition of the description obligation for commercial bank's financial products and simply analyzes the difference between description obligation and information of disclosure obligation,and then introduce the content of fulfilled description obligation,and further explain through the theory of information asymmetry,“caveat emptor” principle and the theory of financial consumer protection to clarify the necessity of commercial banks to fulfill their description obligations in the sale of financial products.The second chapter focuses on the status of the description obligations in the sales of commercial bank's financial products.The first part outlines the implementation of the description obligations of commercial banks in China.The second part explains the status of the description obligations of commercial banks in China through three sections.The first section points out that the civil liability of the bank in violation the description obligation has not been cleared yet in our country's law through combing the normative legal documents about the description obligations of commercial bank's financial business.The second section expounds the problem that the description obligation of commercial banks becomes a mere formality.Finally,it analyzes the typical cases of financial disputes in commercial banks and reveals that the performance of description obligations of commercial banks in our current judiciary has not yet formed a unified judging rule.The third chapter introduces the legislative provisions of the description obligations of the financial institutions in Korea,Japan and Taiwan,and provides reference to perfect the description of the obligations of commercial banks' financial products sales in China.The fourth chapter puts forward suggestions for the construction of the description obligation system of financial products in China's commercial banks.This chapter is based on the existing problems in the sales of financial products of China's commercial banks puts forward to optimize legislative framework of the description obligation,clarify the civil liability of the breach of description obligation and sets out the judicial explanation,promulgate the guiding case and strengthens the professional accomplishment of the bank financial management team as well as the establishment of multi-level rights relief system and other aspects of the proposal to better promote the healthy development of commercial bank financial management business and safeguard the interests of financial consumers.