In order to speed up the building of a full-fledged mechanism for the protection of financial consumers’ rights and interests and protect the long-term and fundamental rights of financial consumers, the People’s Bank of China (PBC) thoroughly implements the people-centered development philosophy and the decisions and plans of the CPC Central Committee and the State Council for the “building of a sound fundamental system for protecting financial consumers” set forth in the Opinions on Accelerating the Improvement of the System of Socialist Market Economy in a New Era, based on which it formulates and releases the Implementation Measures of the People’s Bank of China for the Protection of Financial Consumer Rights (PBC Order No. 5 [2020], hereinafter referred to as the Measures), which shall take effect from November 1, 2020.
The Measures comprises 68 articles in seven chapters. Chapter I “General Provisions” sets forth the legislative basis, applicable scope and basic principles. Chapter II “Code of Conduct for Financial Institutions” lays down standards on the top-level design, whole-process control, information disclosure, and financial marketing and promotion of the protection of financial consumer rights provided by banks and payment institutions. Chapter III “Protection of Consumer Financial Information” further strengthens the right to know and the right to select information at their discretion from the perspective of consumer rights to the safety of financial information. Chapter IV “Settlement of Financial Consumption-related Disputes” specifies and improves procedural rules for the settlement of disputes and third-party alternative dispute resolution (ADR) mechanisms. Chapter V “Supervision and Management Mechanism” specifies rules regarding the founding of systems, coordination mechanisms and cooperation in oversight and law enforcement according to the revised “Provisions on the Functions, Organization Structure and Staffing of the People’s Bank of China.” Chapter VI “Legal Liabilities” stipulates the responsibilities of banks and payment institutions, senior executives, and the staff of the PBC. Chapter VII “Supplementary Provisions” specifies the types of institutions to which the Measures shall apply, the right to interpretation, entry into force and abolishment.
In the next step, the PBC will carry on with the implementation of the Measures, more strictly regulate the conduct of banks and payment institutions in providing financial products and services, and protect the legitimate rights and interests of financial consumers in earnest. Banks and payment institutions should meticulously meet all requirements put forward in the Measures, assume the responsibility for protecting the legitimate rights and interests of financial consumers, and make sure their business operations comply with laws and regulations.
