2011-01-17
Taiwan Government Proposes New Legislation to Protect Financial Consumers
The Executive Yuan proposed the “Financial Protection Law” to the Legislative Yuan for review early this month. Due to the complexity and diversity of financial products/services, the consumers are usually short of relevant information and knowledge to make the proper decision. It is necessary to create a fair, reasonable, efficient, and effective mechanism to resolve relevant disputes in connection with the financial products/services, said the Premier Wu Den-yih.
According to the proposed Financial Protection Law, the financial product/service providers must bear the duty of care of prudent persons when providing financial products/services to customers. Also, the providers are required to enter into agreement with consumers based on fairness, reasonableness, reciprocation, and good faith.
Moreover, the financial product/service providers shall not misrepresent, hide, or provide any misleading information when soliciting the financial product/service. The provider shall also be fully aware of the relevant background of the consumers so as to ensure that the products/services are proper and fit the needs of the consumers. Otherwise, the provider may face civil liability for the loss caused to the consumers.
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