Yicai:

The resolution of the third plenary session of the 20th Central Committee of the CPC stated that the mechanisms for protecting financial consumers and cracking down on illegal financial activities should be improved. We all know that protecting the legitimate rights and interests of financial consumers not only concerns the immediate interests of consumers but also plays a crucial role in preventing and defusing financial risks, as well as maintaining financial security and stability. Could you please elaborate on what efforts you plan to make in this area moving forward? Thank you.

Xiao Yuanqi:

This is an important question. Today, we are joined by the director general of the Legal and Regulation Department, so I would like to invite him to answer this question.

Wang Shengbang:

Thank you for your question. As we all know, the banking and insurance industry, or the financial industry, is highly relevant to the public. On both sides of a bank's balance sheet, the liabilities side represents people's deposits and a significant portion of the assets side is also closely related to the public, such as housing mortgage loans. Therefore, the operations of the banking and insurance industry are closely connected to the vital interests of our people. Protecting the legitimate rights and interests of financial consumers and safeguarding people's wealth is an inherent duty of our financial regulation, and can be said to be both the starting point and the goal. Only by effectively protecting the legitimate rights and interests of financial consumers, can we strengthen the public's confidence in the financial system and maintain financial stability. I fully agree with the reporter's view just now. Protecting the legitimate rights and interests of financial consumers is a concrete action showcasing the political- and people-centered nature of financial work. According to the Plan on Deepening Reform of Party and State Institutions, the NFRA is responsible for the overall coordination of consumer protection in the financial sector. Since last year, the NFRA has focused on improving new mechanisms for financial consumer protection and building a new framework for financial consumer protection. We have made some progress and conducted some explorations in several areas of the work.

First, we have established a financial consumer protection system with clearly defined responsibilities. In June this year, the NFRA, in collaboration with the People's Bank of China and the China Securities Regulatory Commission, established a coordination mechanism to enhance information sharing and cooperation on financial consumer protection. At the same time, the NFRA has strengthened its cooperation with courts, procuratorates, public security departments, internet regulators, and market regulators to jointly address cross-industry and cross-sector financial consumer protection issues, such as false advertising and misleading promotions. Additionally, the administration's branch offices at four administrative levels have established local financial consumer protection coordination mechanisms.

Second, we are strengthening whole-process protection for financial consumers. Prior to transactions, we require financial institutions to assess both the risks of financial products and the risk tolerance of consumers and investors. Institutions must adhere to the "triple appropriateness" principle: appropriate target customers, products and sales channels. This ensures that suitable products are offered through proper methods to qualified investors, preventing mismatches. We also aim to enhance consumer education to increase risk awareness. Post-transaction, we enhance protection through regulatory reporting and evaluation mechanisms to ensure compliance. To address the high volume of consumer-financial institution disputes, we need to explore establishing diverse financial dispute resolution mechanisms. We aim to implement the grassroots social governance practices of the new era, enhance the efficiency of dispute resolution, and better safeguard consumers' legal rights.

Third, we aim to enhance the responsiveness of financial consumer protection. We focus on key issues that affect people's daily lives, such as addressing forgotten insurance policies and notifying people about dormant bank accounts. Some individuals have forgotten about insurance policies purchased years ago, while numerous bank accounts lie dormant, unknown to their holders. Therefore, we are working to clean up these forgotten policies and remind people about dormant accounts, ensuring that our efforts genuinely benefit the public and reflect the warmth of financial regulation.

Fourth, we are creating a well-regulated and trustworthy financial consumer environment. We are advancing the development of an integrity system within the financial sector, establishing mechanisms to restrict dishonest entities, and increasing penalties for serious violations. We are also enhancing coordinated governance mechanisms in the financial consumer sector to combat illegal activities and regulate marketing practices. These efforts aim to strengthen consumer protection measures, laying a solid foundation for the sustained, healthy development of the financial industry. Thank you.