A Study on the Suitability Doctrine in Financial Consumer Protection Act

• Main Authors: CHANG, JUI-YU, 張瑞妤
• Other Authors: WANG, CHIH-CHENG
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/f9r39k

碩士 === 國立中正大學 === 財經法律系研究所 === 105 === In the view of the increasing diversity and complexity in financial products and services, asymmetric information makes financial consumers tend to rely on financial services enterprises with the advantage of the information. Financial consumers are vulnerable to conducting their financial trading by following the enterprises’ recommendation. Therefore, the financial services enterprise must have an adequate and reasonable basis to believe that a recommended financial products are suitable for the financial consumers, based on fulfilling “Know Your Product” suitability, which focuses on the characteristics of the recommended financial products, and “Know Your Customer” suitability, which focuses on the financial objectives, risk tolerance, financial situation and other information of the financial consumers, through reasonable diligence. Financial Consumer Protection Act (FCPA) promoted the position of the suitability doctrine from the status of administrative ordinances and self-regulatory rules to that of law. For protecting the financial consumers, the constituent elements of suitability doctrine which financial services enterprise requires in a financial transaction is expressly described in Article 9 of the FCPA. And the author analyzed the constituent elements of the liability for damages of failing to perform “Suitability Doctrine” in Article 11 and the punitive damages in Article 11-3. Financial Consumer Ombudsman Scheme provides the financial consumers with an alternative resolution for dealing with any financial disputes professionally, fairly, reasonably, and effectively. However, the principle of fairness and reasonableness arose from the Law of Equity in Common Law System instead of the traditional legal concept in Taiwan. In order that the principles of fairness and reasonableness can be realized by financial customers, financial services enterprises, and society. The author analyzed the ombudsman cases about suitability doctrine to summarize the common pattern of violating the suitability doctrine and to know how the Ombudsman Committee applied the principles of fairness and reasonableness to financial disputes of breach of suitability doctrine in the determination of the merit, remedy and the claims.