The House of Representatives on Tuesday passed and enacted an investor protection bill that obliges brokers to inform investors of the risks involved when investing in specific financial products.
The new law is scheduled to take effect in April 2001, after financial authorities finish adjusting related ministerial ordinances for compliance, government sources said.
The law will oblige firms handling financial products -- such as deposits, mutual funds, insurance policies, securities and futures -- to explain at the time of sale or solicitation the possible losses that may be incurred.