Mar.19.2007

Japanese Bankers Association

"Key Matters when Concluding Contracts with Consumers" Amended

JBA amended the "Key Matters when Concluding Contracts with Consumers" on March 20.

This notice was drafted in 1999 to foster a more proper and sounder transaction relationship between banks and consumers, who tend to have to function with comparatively less information. It covers all contracts with consumers and lists, as a guideline, what to include in each contract and what banks should pay attention to when concluding contracts with consumers.

In the past 8 years, the banking environment has changed; financial products/services banks handle have increased in diversity and sophistication and consumer protection legislation such as the enactment/revision of the Consumer Contract Act and Law concerning Sale of Financial Products has progressed. Furthermore, the Financial Instruments and Exchange Law, which stipulates cross-industry rules for protecting users, is to be enforced come summer.

The amendment was made on the principle of soliciting qualified customers with regard to the solicitation/explanation of risk products and many other points, based on these changes.