Online sales of financial services shall be regulated: results following discussion of Bank of Russia’s consultation paper

As technologies are progressing, remote service channels are also developing rapidly. The approach to their regulation should be flexible and responsive, according to market participants. In particular, the regulator might set unified requirements for the information about financial products and services offered online and for the publication of such information. A number of participants in the discussion believe that, frequently, higher transparency, simplicity and accessibility of data help address consumer protection issues.

Others consider that tight regulation might constrain the development of the sector, make the customer journey more challenging, while consumers might get an impression that all decisions have already been made for them. The Bank of Russia emphasised that market participants could assess consumers’ risks on their own, taking into account the regulator’s view presented in the report, and take efforts to reduce such risks. That said, the Bank of Russia will continue elaborating unified approaches to and requirements for the configuration of online sales channels. According to the regulator, this will enhance the quality of financial services and promote competition among financial market participants.