Chinese authorities will put in place a multi-pronged mechanism for financial dispute resolution to protect the legitimate rights and interests of financial consumers and prevent and defuse financial risks, according to an official directive.
The directive was issued jointly by the Supreme People’s Court, the People’s Bank of China and the CBIRC. Their goal is to promote the sustainable and healthy development of the financial sector, reported the Xinhua News Agency.
The directive stipulates that civil and commercial subjects with equal rights can apply for mediation by financial dispute mediation organisations in disputes over contractual and tort liabilities arising from financial business.
As per the directive, an agreement between parties to a dispute that is reached through mediation presided over by financial dispute mediators shall have the nature of a civil contract.
If a party refuses to fulfil a mediation agreement, the validity of which has been affirmed by a people’s court, the other party may apply for compulsory execution by a people’s court, says the directive.
The Supreme People’s Court, the People’s Bank of China and the CBIRC will jointly establish a working group to guide and coordinate work related to building the dispute resolution mechanism.