The Cabinet approved a bill Friday designed to tighten controls on the sale of financial products and better protect investors against the risks involved in their investments, government officials said.
The bill would oblige financial institutions to provide information on their products at the time of sale or solicitation.
Institutions such as banks, brokerages and insurers would also be compelled to compensate investors who suffer losses as a result of negligence on the part of a seller in supplying information on the product.
The government is hoping the legislation will come into effect in April 2001.
The new regulations come at a time when a growing number of investors are running into difficulties after buying financial products with insufficient knowledge about their investments.
The legislation is intended to tackle problems arising from progress in the government's drive to liberalize the nation's financial markets to put them on a par with London, New York and other global financial centers.
The bill calls on financial institutions to disclose information on a broad range of financial products, such as deposits, investment trusts, insurance policies, securities and futures.