The People’s Bank of China (PBOC) has led the launch of new measures to shore up protections for domestic consumers of financial services.
PBOC recently issued the “People’s Bank of China Financial Consumer Rights and Interests Protection Implementation Measures,” (中国人民银行金融消费者权益保护实施办法) which will come into effect on 1 November 2020.
According to PBOC the goal of the new measures is to “hasten the establishment of mechanisms to benefit the protection of the rights and interests of financial consumers, and protect the long-term and fundamental interests of financial consumers.”
Specific goals of the new Measures include:
- Actively placing the dissolution and prevention of systemic financial risk in a more prominent position, and effectively employing the role of consumer finance protections as “shock reducers” and “pressure valves”;
- Protecting the long-term, fundamental interests of financial consumers, further standardising the conduct of banks and payments entities;
- Improving the professional requirements of PBOC’s legal system for the protection of the rights and interests of financial consumers;
- Striking against illegal or irregular conduct which infringes the lawful rights and interests of financial consumers, and resolving the problem of the cost of legal infringement in the financial sector being too low;
- Better responding to base-level complaints and social concerns.