What is the Financial Consumer Protection Act?

The Financial Consumer Protection Act took effect on March 25, 2021, to strengthen the protection of financial consumers, prompted by events such as the mis-selling of derivative-linked funds (DLFs) in 2019.

It sets out business conduct requirements for sellers and advisers of financial products, the financial dispute mediation system, and consumer rights such as the right to withdraw a subscription and the right to terminate unlawful contracts. A key feature is that it extended sales regulations, which previously applied only to some products, to all financial products in principle.