Research On The Protection Of Financial Consumers’ Right To Know In Sandbox Regulation

The so-called regulatory sandbox is a friendly regulatory mechanism built by regulators to establish and provide a limited and bounded "safe space" for financial technology innovation subjects,taking into account risk spillover prevention while safeguarding the legitimate rights and interests of consumers,which promotes effective financial innovation and is a regulatory technology pressure-based test.Information is essential for any decision,and information about the test items is even more important in the implementation of the regulatory sandbox system,and because there is an objective information asymmetry within the regulatory sandbox,the protection of financial consumers’ right to information is essential.The rights of financial consumers include the right to information,participation and choice of financial consumers.Safeguarding the rights and interests of financial consumers is an important value and purpose of sandbox regulation.The right to information of financial consumers is an important part of financial consumers’ rights and interests,and safeguarding the right to information of financial consumers in the regulatory sandbox not only reflects the rights and obligations of financial consumers and testing enterprises under financial technology innovation,but also reflects the pursuit of fairness and justice under the rule of law in China.Currently,China is in the process of piloting a "regulatory sandbox",and the effectiveness of the piloting process and the protection of the right to information of financial consumers will be an important indicator for evaluation.Therefore,it is necessary to clarify the attributes and content of the right to information of sandbox consumers at the legal level and to provide adequate protection conditions for them.In view of this,the article takes the protection of the right to information of sandbox consumers as an entry point for research,hoping to provide some help for the construction and improvement of China’s sandbox regulatory model,thus strengthening the protection of consumer rights in China’s sandbox regulatory test and promoting the steady development of China’s fintech innovation.This part focuses on the general theory and the doctrinal basis of the protection of consumers’ right to information under sandbox regulation.In this part,the author first introduces the concept of consumer right to know in sandbox regulation,and analyses and summarises the components and value objectives.Next,the doctrinal basis for the protection of consumers’ right to know under sandbox regulation is explained.This section discusses that the protection of consumers’ right to know in sandboxes has sufficient theoretical support and that the study of the protection of financial consumers’ right to know in sandbox regulation is based on doctrinal theories,including the substantive fairness theory,the information asymmetry theory and the bimodal regulation theory.The article also suggests that protecting the right to information of financial consumers in sandboxes is an important value and objective in sandbox regulation,which is the significance of the research in this thesis.In the second part of the paper,we examine and analyse the existing problems in the protection of the right to information of financial consumers in the sandbox,specifically the limitations in the application of the law on the obligation of appropriateness in the sandbox,the vulnerability of consumers’ information asymmetry,the imperfect regulatory mechanism for the protection of the right to information of financial consumers and the inadequate dispute resolution mechanism for the protection of the right to information.In addition,this section reveals the reasons for the problems with the sandbox regulatory model for the protection of financial consumers’ right to information in China.In response to the key points identified in the previous section,the protection of consumers’ right to information in China’s "regulatory sandbox" experiment is examined,revealing that the "regulatory sandbox" pilot in China has been hampered by the legal application of financial institutions’ suitability obligations.This reveals that the practical problems in protecting the right to information of financial consumers in the sandbox test in China are due to the restricted legal application of financial institutions’ suitability obligations,the need to strengthen the mechanism of full disclosure and supervision of financial institutions,and the need to supplement the dispute resolution mechanism of the right to information,which have indeed affected the protection of consumers’ right to information in the sandbox.The third part is a comparison of the protection of financial consumers’ right to information in sandbox regulation and its implications for China.The practical experience of the United States is to strengthen administrative regulation and strict information disclosure;the practical experience of the United Kingdom includes the introduction of suitability rules and the establishment of a financial complaints service;and the practical experience of Japan and Chinese Hong Kong is to expand the boundaries of consumer protection in terms of legislation,designate special regulators and clarify the obligation to explain financial products and corresponding services.In the fourth part,in light of the existing problems revealed in the second and third parts and the impact of overseas experience,and in the light of the protection of the right to information of financial consumers in the "regulatory sandbox" pilot,this paper proposes optimisation and complementary views on the protection of financial consumers in the Chinese sandbox regulatory model,drawing on useful experiences from overseas.The paper also presents a feasibility analysis of the proposal.