BEIJING, Nov. 2 (Xinhua) -- China's top legislature has started deliberating the draft financial law, which includes better protections for financial consumers and investors, as well as new provisions regulating online marketing of financial products and services.
The draft was submitted for its second reading at a session of the Standing Committee of the National People's Congress, which runs through Friday.
The proposed law is designed to serve as a foundational, comprehensive and overarching piece of legislation for China's financial sector, providing guidance and a regulatory framework for the country's financial legal system.
To strengthen the protection of financial consumers and investors, the revised draft stipulates that providers of financial products and services must establish fair and reasonable transaction terms. They must not use standard-form clauses to unfairly restrict consumer or investor rights, reduce or exempt themselves from liability, or impose additional responsibilities on consumers and investors.
It also requires entities marketing financial products and services to strengthen customer suitability management, obtain relevant customer information in accordance with regulations, accurately explain their offerings, fully disclose risks, and ensure that products and services are appropriate for customers' circumstances.
The revised draft also introduces targeted provisions to tighten oversight of online marketing activities involving financial products and services.
Under the proposed provisions, the online provision or marketing of financial products and services must comply with relevant laws, administrative regulations and rules issued by financial regulators under the State Council, including specific requirements governing online financial activities.
Financial products and services offered through non-public issuance must not be advertised or publicly solicited via the internet or other channels, including through disguised forms of public solicitation.
The revised draft also adds provisions emphasizing a market-oriented and law-based approach to financial development and promoting the development of international financial centers.
Additional provisions further seek to address the regulation of asset management businesses and cross-border financial activities. ■
