Enhancing consumer protection: regulator’s recommendations for financial institutions’ boards
Depending on the scope and type of a financial institution’s business, its board of directors is advised to have a separate procedure for monitoring consumer protection. To this end, the board may include experts in customer experience and the development and sale of financial products and services.
Additionally, financial market participants may establish a consumer protection committee under the board of directors, which will be responsible for the issues related to the implementation of professional conduct rules in customer relations and consumer protection controls. Such a committee can also suggest improvements to the incentive scheme for employees to factor in their customer centricity level.
Requirements for the committee chair are similar to those for an independent director stipulated in the Corporate Governance Code.
The Bank of Russia has sent its information letter to financial market participants working with a large number of individuals.