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Legal Risk and Investor Protection for Retail Investment Products: An Empirical Study of Lawsuits Regarding Mutual Funds and Structured Notes in Taiwan
Chen, Christopher Chao-Hung
Empirical Study;Legal Risk;Investment Disputes;Retail Investment Products;Mutual Fund;Structured Note;Trust, Bank;Financial Consumer Protection
|Issue Date:||2017-11-07 10:43:34 (UTC+8)|
This study analyses the results of 322 lawsuits regarding retail mutual funds and structured notes in Taiwan between 2000 and 2012 and their relationship with other factors such as investors' personal characteristics, main arguments and causes of action. This study has the following major findings: (1) the winning rate for investors was quite low, meaning that banks face low legal risk from inappropriately selling claims; (2) investors were not better off for having filed a complaint with the Banker's Association; (3) we have not proved that the courts showed preference for investors with certain personal traits due to the limited information available; (4) a plaintiff's winning rate does not vary much from one argument to another, except for arguing formation of contract, but our research shows that more might have to be done to clarify the post-contractual responsibilities of banks; (5) there is also no proof to indicate that certain causes of action or litigation strategies would help investors in winning a judgment and we have not proved that filing more causes of action would help to increase a plaintiff’s chance of winning. Our findings urge regulators and legislators to reconsider regulatory policies for investor protection as well as dispute resolution for financial consumers in the future to offer more complete protection of financial consumers.
|Relation:||政大法學評論, 141, 109-196|
|Appears in Collections:||[法學評論 TSSCI] 期刊論文|
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