The General Office of the China Banking and Insurance Regulatory Commission ("CBIRC") has recently issued the Circular on Launching a Rectification Program Against Infringements of Consumer Rights by Banks and Insurance Institutions (the "Circular").
The Circular clearly specifies the focus of this rectification program, and presents the forms of infringements of consumer rights in banking and insurance sectors. The forms of infringements of consumer rights existing in the banking sector include but are not limited to problems in product design, marketing, product sale, internal management, cooperation with third-party institutions, etc., while the forms of infringements of consumer rights existing in the insurance sector include but are not limited to problems in products, sale, insurance claim, internet insurance, etc. Problems in seven aspects, such as illegal use of government credibility in marketing campaigns, are common in banking and insurance sectors. Furthermore, the Circular calls for tougher accountability during the rectification program, and urges improvement on relevant mechanisms. Banks and insurance institutions shall create files on an item-by-item basis for all problems detected on their own or during regulatory inspections, perform self-inspections seriously and take corrective actions, and hold the individuals concerned liable.