Friday May 25, 2018
Home > News > Economy
Text:| Print|

PBOC open consumer protection bureaus

2012-09-29 10:09 Caixin     Web Editor: qindexing comment

Nation's top four financial watchdogs now have the offices modeled after a U.S. forerunner

The China Banking Regulatory Commission (CBRC) and the central bank have each created a bureau to educate investors and handle complaints, as part of a government effort to improve investor protection following the global financial crisis.

Each of the nation's four top financial regulators is required by the central government to have its own bureau for investor protection. The China Securities Regulatory Commission (CSRC) and China Insurance Regulatory Commission (CIRC) already have them.

The move was proposed by the central bank, which advocated that China have a mechanism similar to the U.S. Consumer Financial Protection Bureau. That agency was established by the Dodd–Frank Wall Street Reform and Consumer Protection Act, which U.S. President Barack Obama signed into law in 2010.

China's version of the system reflects a compromise between the need for consolidated authority and fragmented supervision of different areas.

A source at the People's Bank of China said a unified institution would not work effectively because coordination between different authorities was usually time consuming and full of bureaucratic obstacles.

However, a source at the banking regulator said: "Having each authority set up its own office will only lead to buck-passing and cannot protect consumers' interests."

The investor protection bureaus under the CBRC and the central bank would be staffed by 15 members, a source with knowledge of the matter said. The bureau chiefs and deputy chiefs have been appointed, but the announcements have not been made public.

The CIRC created its bureau in December 2011, and the CSRC opened its office the next month.

The securities regulator's bureau has a meditation and arbitration system for processing investor complaints and emphasizes retail rather than institutional investors.

The CIRC's bureau researches investor protection mechanisms, provides consulting services and handles investor complaints. Investors can get risk warnings and educational services from it, too.

Comments (0)

Copyright ©1999-2011 All rights reserved.
Reproduction in whole or in part without permission is prohibited.