Financial product risk Easy-to-understand instructions to the FSA's council's recommendations 20:12 July 29
As banks and insurance companies are increasingly complaining about selling risks and fees of mutual funds and foreign currency-denominated insurance without fully explaining them, the FSA's council said that the FSA's council would allow customers to check product risks at a glance. I decided to make a clear, easy-to-use instruction manual.
There are many cases in which financial institutions sell foreign currency-denominated insurance and investment trust fees, which are at risk of loss due to exchange rate fluctuations, without sufficient explanation, leading to complaints and troubles from customers.
For this reason, the Financial Services Agency examined the response at the council and accepted the proposal to financial institutions on the 29th.
The Board wants financial institutions to create a common form of documents so that customers can compare financial products at a glance, and explain in an easy-to-understand manner such as the risk of price reductions and some fees.
It also requires that the family can check the contract so that the elderly, who have poor judgment ability, cannot buy the product and suffer losses.
It also encourages the FSA to strengthen its oversight of financial institutions to sell products that match the client's financial position.
Following the recommendations of the council, the FSA will consider specific countermeasures.