The Civil Obiligations Of Commercial Bank Underwriting

The commercial banks' underwriting is the business that they make use of their own premises,personnel and channels(including their Internet platforms)in order to help meet the regulatory standards of third-party financial institutions to sell their various types of funds,national debt,corporate bonds and other financial products.After acquainting with the basic situations and the existing problems of underwriting in China,it is found that in practice the underwriting banks usually do not bear any obligations to the purchasers of financial products for the reason that they are just underwriters and have no direct legal relationship with purchasers.The practice of underwriting results the legitimate rights and interests of purchasers can not be protected.Thus the law should be improved.Although the purchasers of bank underwriting products did not sign a contract during the underwriting,there is a factual contract relationship which is the foundation that banks assume obligations to their purchasers.By distinguishing the purchasers of financial products into financial consumers and financial investors,the obligations of underwriting banks should be clear.The obligations are divided into two areas: the general obligations to financial consumers and financial investors,and the special obligations of financial consumers.The general obligations include the obligations of due diligence,risks disclosure,and examination of customers qualification.The underwriting banks shall undertake some special obligations(other than the above-mentioned civil obligations),including the obligations of recommending appropriate products,disclosing the risks,notifying changes in risk,explaining professional terms and demonstrating the recourse on behalf of the purchasers.