Applications for business reputation recovery: consideration procedure
The Bank of Russia has released a review of the procedure for considering complaints against decisions to recognise persons (entities) as incompliant with qualification requirements and/or business reputation requirements.
The review is aimed at raising the transparency of the activity of the Bank of Russia Complaint Commission and communicating the approaches used by the commission in its decision-making to financial market participants.
In order to keep applicants’ personal data confidential, the review provides a number of depersonalised examples based on complaints reviewed by the Commission in 2019 and an overview of the decisions taken.
The Commission was established in accordance with the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ and since 28 January 2018 it has reviewed complaints from officials and the major shareholders (stakeholders) of credit and non-bank financial institutions about recognising them as incompliant with the applicable requirements.
According to the effective law, appellants’ business reputation may be rehabilitated if they provide evidence of their non-involvement in actions (inaction) that entailed adverse consequences for a financial institution. If that is the case, the Commission’s decisions constitute legal grounds for the Bank of Russia to remove the information on the complainant from the relevant database.
Statistics on the Commission’s operations are posted on the Bank of Russia website monthly.
Overall, as of 1 January 2020, the database included information on 7,504 persons whose activities are associated with financial institutions.