The regulator deems protecting the rights of financial services consumers and improving public trust in financial markets to be its most important task
Protecting the rights of financial services consumers has become the number one priority on the list of primary areas for development of the financial market in 2016–2018, since it is an important condition for ensuring public trust in the sector. In turn, such trust will make it possible to achieve the key objective of the Bank of Russia: to improve people’s living standards and quality of life by using financial market tools.
How to ensure that they do not lose their savings, who can and who cannot be trusted, what to do if outstanding loan debt builds up, how to avoid forced insurance products, and many other topical issues will be discussed at a round table on the issue to be held as part of the 25th International Financial Congress in St. Petersburg.
The banking sector lost 93 credit institutions during the past year, while 102 insurance companies and 204 securities trading companies lost their licences, and 1,703 microfinance institutions were deleted from the register. The majority of the ‘dead’ companies lost their right to operate on the financial market due to flagrant violations of the law. This means that the rights of thousands of depositors and clients who trusted dishonest financial institutions were violated. The Bank of Russia intends to devote particular attention to protecting the rights of financial services consumers over the next two and a half years. This topic has become a priority among the ten primary areas for development of the financial market in the 2016–2018 period. The measures planned by the regulator to solve the problem of protecting people’s rights in the financial market include continuing the course for introducing contemporary international standards and practices in financial risk management; internal oversight systems; banking regulation and oversight; basic standards for consumer relations; the introduction of limitations on access to complex financial products; improving the handling of public complaints and appeals; and increasing the level of financial literacy. Furthermore, a wide range of measures to improve the level of protection of minority shareholders in Russian companies is planned.
Mikhail Mamut, Director of the Service for Protection of Financial Services Consumers and Minority Shareholders at the Bank of Russia: “We are now faced with the task of transitioning to the type of oversight that would prevent violations and minimize how many occur, and would also enable us to improve existing business models from the consumer’s viewpoint. This form of oversight can be called behavioural, i.e., it is aimed at monitoring the behaviour of market players in terms of their attitude towards the consumers of their services.”
These and other topical issues related to protecting the rights of financial services consumers and investors will be discussed at a round table of representatives of the megaregulator, other government oversight bodies, the Russian State Duma, and self-regulatory organizations working in the industry. The following will participate in the discussion: Liliya Belyaeva, Deputy Head, Department for Control over Financial Markets, Federal Antimonopoly Service of the Russian Federation; Viktor Klimov, Deputy Chair, Committee on Economic Policy, Innovative Development, and Entrepreneurship, Russian State Duma, Project Supervisor, All-Russia People’s Front for the Rights of Credit Users; Vadim Kumin, First Deputy Chair, Russian State Duma Committee on the Financial Market; Elman Mekhtiev, Executive Vice President, Association of Russian Banks; Anna Popova, Head, Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor); Oleg Prusakov, Head, Consumer Rights Protection Department, Rospotrebnadzor; Elena Stratyeva, Vice President, National Partnership of Microfinance Market Stakeholders (NAUMIR); Evgeny Ufimtsev, Vice President, All-Russian Insurance Association, Executive Director, Russian Association of Motor Insurers. The round table will be held on June 30 as part of the 25th International Financial Congress in St. Petersburg.
The 25th International Financial Congress: The Future of Financial Markets will be conducted by the Central Bank of the Russian Federation.
Date and location: June 29–July 1, 2016, Presidential Library, St. PetersburgMore detailed information can be found at www.ibcongress.ru