Publicity for the protection of financial consumption rights and interests effective March 15, 2021 (I)

2021-06-07 10:43:59

On November 13, 2015, the General Office of the State Council issued Guiding Opinions on Strengthening the Protection of Financial Consumers’ Rights and Interests, which clarified the code of conduct for the protection of financial consumers’ rights and interests and requested financial institutions to fully respect and consciously guarantee the basic rights of financial consumers such as property security right, right to know, right to choose independently, right of fair trade, right to education and information security right, and to conduct business activities in accordance with laws and regulations. This is the first time that the protection of financial consumers’ rights and interests has been specified at the national level, emphasizing the protection of eight rights of financial consumers.

1. Protect financial consumers' property security right

The financial institution shall protect the property of financial consumers according to law in the process of purchasing financial products and receiving financial services. It shall carry out operations prudently, adopt strict internal control measures and scientific technical monitoring means, and strictly distinguish its own assets from its clients’ assets, and it may not misappropriate or otherwise occupy clients’ funds.

2. Protect financial consumers' right to know

The financial institution shall disclose information that may affect financial consumers’ decision-making to them in a timely, true, accurate and comprehensive manner, in an easy-to-understand language, and fully and promptly disclose risks. It may not publish fraudulent information that exaggerates product benefits, conceals product risks and makes false or misleading publicity claims.

3. Protect financial consumers' right to choose independently

The financial institution shall, within the scope permitted by laws, regulations and regulatory provisions, fully respect the intentions of financial consumers, and consumers can make their own choices and decide whether or not to buy financial products or receive financial services. The financial institution may not conduct forced buying or selling, offer tied-sales products and services against the intentions of financial consumers, attach other unreasonable conditions or induce financial consumers to buy other products by misleading means.

4. Protect financial consumers' right of fair trade

The financial institution may not set any trading conditions that violate the principles of fairness, increase financial consumers’ responsibilities, restrict or exclude the legitimate rights of financial consumers, restrict financial consumers from seeking legal remedies, or reduce or exempt its civil liabilities for damaging the legitimate rights and interests of financial consumers.

5. Protect financial consumers' right of claim according to law

The financial institution shall earnestly fulfill the main responsibilities of handling the complaints of financial consumers, establish a multi-level complaint handling mechanism within the institution, improve complaint handling procedures, establish a complaint handling inquiry system, improve the quality and efficiency of handling the complaints of financial consumers, and accept social supervision.

6. Protect financial consumers' right to education

The financial institution shall further strengthen the education of financial consumers, actively organize or participate in financial knowledge popularization activities, carry out extensive and continuous daily education of financial consumers, help financial consumers improve their cognitive competence and self-protection ability for financial products and services, and enhance their financial literacy and awareness of honesty and trustworthiness.

7. Protect financial consumers' right to be respected

The financial institution shall respect the personal dignity and national customs of financial consumers, and it may not discriminate against financial consumers on account of their gender, age, race, ethnicity or nationality.

8. Protect financial consumers' information security rights

The financial institution shall take effective measures to strengthen the management of third-party cooperative institutions, clarify the rights and obligations of both parties, strictly prevent and control the risk of financial consumer information disclosure, and ensure the information security of financial consumers.