The “Finance Law of the People's Republic of China” was submitted to the 25th session of the 14th National People's Congress Standing Committee for second review on November 2. The second draft review enriches financial consumer and investor protection content, and adds targeted regulations on activities such as internet marketing. Financial law is the basic, comprehensive, and dominant law governing the financial sector in China. It is positioned as “1” in the financial legal system and plays a guiding, leading, and regulatory role. In June of this year, the 23rd session of the 14th National People's Congress Standing Committee conducted an initial review of the draft financial law. In terms of financial consumer and investor protection, the second draft review added provisions that provide financial products and services, fair and reasonable transaction conditions shall be set, and that formal clauses shall not be used to exclude or restrict the rights of financial consumers or investors, reduce or exempt them from their own responsibilities, or increase the liability of financial consumers and investors; marketing entities of financial products and services shall strengthen customer appropriateness management, understand the customer situation in accordance with regulations, and accurately explain the content of financial products and services, fully indicate risks, and provide financial products and services that match the customer's situation. The second draft review added targeted regulations on Internet marketing and other activities to strengthen regulation and management, including: providing or marketing financial products and services through the Internet shall comply with this law and relevant laws, administrative regulations, regulations of the financial administration department under the State Council on financial products and services, and specific regulations on the provision or marketing of financial products and services through the Internet; financial products and services that are not publicly distributed shall not be advertised, publicly persuaded, or disguised publicly persuaded through the Internet. Furthermore, the second draft review added content that financial work adheres to the direction of market-based legalization, promotes the construction of international financial centers, and adds relevant regulations on asset management services and supervision of cross-border financial activities.

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