Revised Financial Product Trading Act was enforced in September 2007. The law reform could have aimed to diminish of consumer detriment caused by unfair practices conducted in marketing. In spite of the expectation, the current sateus is different, recent press report states it.
Revised law
The law imposes a broker to give efficient information to a customer to make his informed decision. Where the broker recommends the products that could incur a loss to principal, the broker has to disclose it and confirm the customer’s needs. If the broker ignores his duty to result in financial loss, he has to compensate it.
Cold calling should be prohibited
The Financial Product Sales Law, which regulates a Forex trading seems to be more effective to minimize the consumer injuries since enactment. The law prohibits the unsolicited calling or visiting to the customer for marketing. If our government is eager to the reduction of consumer injuries, the prohibition of a cold calling is bet measure, I suppose.
