Financial Supervision and Administration: Diversified Resolution of Consumer Disputes and Strict Punishment of Illegal Agency Rights Protection

China Securities Journal Reporter Qin Yanling

On March 20, the State Administration of Financial Supervision publicly solicited opinions on the “Measures for the Administration of Financial Consumer Complaint Handling (Revised Draft for Comments)” (hereinafter referred to as the “Measures”). Compared with current regulations, the “Measures” further improve the institutional mechanisms and the diversification of dispute resolution.

The full text of the “Measures” includes six chapters: General Provisions, Institutional Mechanisms, Consumer Complaint Handling, Diversified Dispute Resolution, Supervision and Management, and Supplementary Provisions, totaling 52 articles. Among them, in terms of institutional mechanisms, the “Measures” integrate and optimize relevant content previously scattered across the chapters on “Organizational Management” and “Banking and Insurance Industry Consumer Complaint Handling Systems,” while adding emphasis on source-based resolution of consumer complaints. It clarifies that “banking and insurance institutions shall conduct risk investigations of consumer complaints, and promptly take measures to prevent issues reflected through consultations, opinions, suggestions, and other signals from escalating into complaints.” For complaints that are difficult for subordinate institutions to resolve, have poor handling results, or involve long-standing conflicts, it also requires timely escalation for resolution.

In terms of assessment and evaluation, the “Measures” propose that “positive incentives and negative constraints should be used comprehensively, and the proportion and weight of relevant indicators should be reasonably allocated. The number of consumer complaints should not be simply used as an assessment indicator,” whereas current regulations require setting reasonable weights in relevant assessments.

Compared with current regulations, the “Measures” newly establish a dedicated chapter on “Diversified Dispute Resolution,” encouraging both parties to resolve disputes through lawful and equal negotiations, self-resolution, or mediation. It fully leverages the roles of industry self-discipline organizations and mediation organizations in complaint handling. For example, the “Measures” encourage active participation in quick resolution mechanisms for small disputes, and establish a “small compensation, small claims” mechanism to promote dispute resolution.

While strengthening the protection of financial consumers’ rights and interests, the “Measures” also address prominent illegal agency rights protection activities and other black and gray industries in recent years. Specifically, on one hand, it clarifies that if the complainant or their agent causes serious disturbances, harassment, or protests, or violates laws and regulations related to assembly and demonstration, banking and insurance institutions and their staff may request public security authorities to take necessary on-site measures and impose administrative penalties; if a crime is involved, criminal responsibility shall be pursued according to law. On the other hand, it also emphasizes the genuine obligations and legal responsibilities of complainants, clarifying that “if the complainant or their agent fabricates or distorts facts, provides false materials, constituting a violation of public security management, banking and insurance institutions may request public security authorities to impose administrative penalties; if a crime is involved, criminal responsibility shall be pursued according to law.”

Additionally, the “Measures” abolish separate penalty provisions for specific industries such as banking and insurance, further unifying penalty measures. When banking and insurance institutions encounter relevant prohibitive circumstances, the Financial Supervision Administration and its dispatched agencies shall order correction within a specified period; if not corrected within the deadline, they may, depending on the situation, issue warnings, criticism notices, or impose fines ranging from 10,000 to 200,000 yuan.