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The measure for banks to prevent their promotional materials from misleading the customers
From: The Financial Supervisory Commission
Date: 2006/04/03
Ref. No.: Jin-Kuan-Yin-(6)-Zi-No. 09585007500
Subject: For the reason of protecting the interests of consumers, the following measure is for banks to prevent their promotional materials from misleading their customers or investors. Please forward these instructions to your members.
Explanation:
1. It has been found that some of the trust enterprises which sold notes linked to the Euro Medium Term Notes Program (EMTN) misled their investors that the notes are denominated in euro or linked to euro-related derivatives due to a wrong Chinese translation in their promotional materials. For the sake of protecting the interests of consumers and reminding the financial institutions that such misunderstanding might impair their business reputation, please notify your members to undertake full-scale examinations to see whether similar problems occurred. If so, the bank should make corrections and inform its customers immediately. If consumer disputes result from this kind of misleading conduct, the bank should be responsible for upholding the interests of their customers.
2. Banks that sell the aforementioned notes or similar financial products shall produce a report of findings on examination and actions taken. The report should be signed by their compliance officers and submitted to their audit department for review. |