What is the duty to explain?

When recommending a contract to a general financial consumer, or when the consumer asks for an explanation, a financial company must explain the important features of the product in a way the consumer can understand.

For investment-type products, the items to be explained include the product's details, investment risks, risk grade and fees, as well as the deadline, method and effect of withdrawing a subscription. When explaining, the company must not falsify, distort or omit important matters.