Cooling off period for sale of financial products

Banks employ marketing officers to sell complex financial products to their customers. The best time to catch the customer is on the maturity of their fixed deposits. As the customers are not happy with the low interest rate, the marketing officer introduced a structured deposit to the customer.

Many of these customers are ordinary people, who do not understand the risk and the fairness of the terms of the product.

The banks are required to give materials in writing to the customer. The matuerials explain the risk in some general way. But the marketing officer, during their talk, explain away the risk. They say, "The chance of losing all your money is very small". These statements are given verbally and not put down in writing.

Many people buy the complex risky products, without understanding the risk.

I suggest that the banks should be requird to give a 14 day cooling off period to the customer, and that it should happen on receipt of the wordings of the contract. The cooling off period must be prominently displayed on the front of the contract.

During the past ten or more years, life insurance companies are required to give a 14 day cooling off period for the sale of their products. This right has to be prominently conveyed to the customer.

I hope that there is a similar requirement for the complex structured products that are now being marketed by the banks.