Key Points of China Minsheng Bank’s Fair Advertising Policies for Products and Services

China Minsheng Bank (the Bank) places great emphasis on and is committed to safeguarding the rights and interests of financial consumers, continuously strengthens the management of marketing of financial products and services. It carries out related works in a standardized, systematic, and professional manner, and streamlines the key points of policies in relation to consumer rights protection in the marketing of financial products and services. The policies and regulations hereby mentioned are applicable to the whole bank, including all domestic operating units.

China Minsheng Bank strictly abides by relevant regulatory rules and regulations, including the Guiding Opinions of the General Office of the State Council on Strengthening Financial Consumer Rights Protection and the Notice on Further Regulating Financial Marketing Activities, and has formulated internal policies such as the Administrative Measures on Consumer Rights Protection of China Minsheng Bank and the Administrative Measures on Consumer Rights Protection in Marketing of Personal Financial Products and Services of China Minsheng Bank.

Ⅰ. Key Provisions

Organizational mechanism: The Consumer Rights Protection Work Committee at the Head Office is responsible for coordinating the information disclosure of consumer rights protection of personal financial products and services. The Consumer Rights Protection Department at the Head Office is responsible for organizing consumer rights protection inspections related to marketing of personal financial products and services. The departments of the Head Office in relation to customer management, products and channels are responsible for managing the marketing of products and services of their lines of business, as well as channels under their management, to ensure compliance with consumer rights protection requirements in marketing by business lines, employees and channels, and to regulate the behaviour external partners. All tier-1 branches are responsible for managing its own marketing of products and services, to ensure compliance with consumer rights protection requirements in the marketing by the branch and its employees.

Consumer rights protection principles. Marketing activities should follow the following five key principles of consumer rights protection: 1. Carrying out marketing within the business scope as approved by the regulatory authorities; 2. Guaranteeing  consumers’ right to know; 3. Guaranteeing consumers’ right to make independent choices; 4. Guaranteeing consumers’ right to be respected, and 5. Guaranteeing consumers’ right of financial information security.

It is not allowed to carry out false, fraudulent, deceptive or misleading publicity activities. It is not allowed to exaggerate past performance or product yields by quoting untruthful and inaccurate data and materials or concealing restrictions. It is not allowed to mislead individual customers to believe that financial management authorities have guaranteed a product or service through the review or filing procedures of such products and services. It is not allowed to make commitments to the future effect, yields and relevant information of non-principal-guaranteed personal investment financial products by explicitly or implicitly giving indications of guaranteed principal, risk-free or guaranteed returns. It is not allowed to promise loans or loans limits without approval. It is not allowed to carry out other activities that violate financial consumer rights protection laws, regulations, or regulatory requirements.

Ⅱ. Policy Implementation

China Minsheng Bank conducts full-coverage audit of the marketing of its personal finance business, apply various tools, such as video and audio recordings, phone recordings, and corporate Weixin platforms, to review and regulate such marketing activities, in order to prevent exaggerated, false, or misleading publicity, as well as discriminative or negative contents, and to avoid risks of infringing on consumer rights. The Bank precisely conducts marketing with diversity, inclusiveness and transparency based on customer characteristics, and proactively monitors such activities. Financial marketing activities are conducted in compliance with relevant laws, regulations, societal norms and ethical standards.

Regular monitoring and supervision. The policies have specified that the relevant departments of the Bank shall carry out monitoring of marketing activities of personal finance on a regular basis, the scope shall cover internal channels, third-party channels and social media platforms of employees, and the time shall span the full-life cycle of products and services.

Training and education. The Bank has enhanced the education and training on consumer rights protection in marketing of personal finance by providing trainings on financial marketing and responsible marketing to employees engaged in product publicity and marketing promotion, and has established a long-term mechanism for training.

Management of violations. Actions that violate the Administrative Measures on Consumer Rights Protection in Marketing of Personal Financial Products and Services of China Minsheng Bank are considered infractions. Those that conform to the standards of the accountability regulations will be held accountable.