Market participants should adopt common approach to informing clients
The Bank of Russia has revealed cases when financial institutions do not fully disclose information about products and services to clients, do not guarantee investment returns, and use graphical techniques on their websites to make information about associated expenses less visible.
Often, when comparing an investment product with a bank deposit, a financial institution highlights its advantages but does not inform about associated risks. Seeking to enhance clients’ confidence, some market participants use the phrase ‘approved by the Bank of Russia’, which is not true.
The regulator identifies such violations both on banks’ websites and in verbal communications to consumers. The Bank of Russia has sent an information letter to market participants describing unfair practices that should be fully avoided when providing services to customers. In addition, the regulator recommends that financial institutions timely provide consumers with full, user-friendly and reliable information about financial products and services.