CEIBS Lujiazui Institute of International Finance Research Center, an international platform for academic exchange, set up a research fund yesterday to promote protection of customers from risky financial products.

With a starting capital of 1 million yuan (US$163,934) from the Orient Securities Asset Management Co Ltd, the fund will support research in consumer protection against risky financial products and help improve the legal environment of the financial market.

"China still lags behind in the field of financial customer protection due to a lack of laws and regulations that specify the rights of financial customers, poor enforcement of existing rules and low awareness of customers for self-protection due to inadequate education," said Wu Xiaoling, director of the CEIBS Lujiazui Institute of International Finance Research Center.

Wu suggested that China should introduce a system that allows financial product buyers to collectively bring a claim to court and encourages investors to solve financial disputes through arbitration or litigation instead of private settlement.

The fund will also sponsor academic forums and select best practices in financial customer protection to push forward public education and strengthen investors' awareness of risks.