From July 2022, banks and other financial organizations will have to buy back any financial product, for example, the notorious investment life insurance (LIS), an investment instrument, etc., if it was imposed or the person was not sufficiently informed, misled.
If the violations are persistent, the regulator will suspend the sale of this product. The relevant regulations have already been prepared by the Central Bank and are being registered, Mikhail Mamuta, head of the Central Bank’s Service for Consumer Rights Protection and Ensuring the Accessibility of Financial Services, said in an interview with Izvestia.
He explained that this new regulation concerns the rules for the sale of financial products, which, according to him, will help demotivate banks to engage in unfair practices (misselling).
“If earlier a person complained that “he was deceived, abused by ignorance”, that he “did not understand what he was told”, then during the trial it was his words against the words of a bank employee. It was not always possible to establish the truth. Often it was necessary to appeal more to the conscience of the seller than to the established fact. After all, misleading occurs, as a rule, in the course of a conversation, – said Mikhail Mamuta. “Now the situation is changing. Our new regulation describes the requirements for the interaction of a seller with a buyer, for example, what and how a bank, which acts as an agent for the sale of an insurance product, should tell.
He clarified that the requirements will be the same for everyone – both the bank and the insurer.
“Formal obligations of financial companies to sell honestly appear, and there is one fundamental novelty in the regulation – what the seller says orally cannot essentially differ from what is recorded on paper. And if we receive such a complaint and through a test purchase we catch a dishonest seller cheating, this will give us legal grounds to apply all the norms provided for by law, ”said the head of the Central Bank Consumer Rights Protection Service.
As he said, the regulator assumes that the regulation on sales rules will come into force from July 2022. The central bank’s internal regulation is designed to comply with a law passed last year that gave the regulator the power to restrict the sale of complex financial products to unqualified investors if incomplete or inaccurate information is provided on them.
The document also obliges financial institutions to repurchase a financial instrument and reimburse expenses incurred by individuals if the rights and interests of the consumer were violated during the sale.
Read the details in an exclusive interview with Izvestia:
“A person will have the right to take a vacation on each loan”
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
