Banks to disclose full information on products and services
Banks will be obliged to disclose comprehensive information about their products and services according to the requirements and timeframe established by the Banking Standard. The relevant law, drafted with the participation of the Bank of Russia, has been approved by the Federation Council today.
The analysis of complaints received by the regulator shows that banks often fail to provide full information about their products and services when people open deposits, raise loans, or apply for other financial services via mobile apps or bank websites. Credit institutions tend to highlight their attractive parameters and frequently fail to properly disclose inherent risks and special terms. Moreover, individuals do not always grasp the essence of a particular product or service. For example, some banks offer brokerage and trust management services in the section related to savings, although investment products do not guarantee returns. Since this information is not classified as advertising, the related law is not applicable to it.
The new law regulates the content of the standard on the rules that banks must comply with when informing customers in offices, on websites, and in mobile apps. This will help consumers make informed decisions and eliminate the practice of ‘dark patterns’ that may be used by banks to influence customers’ choices.
The law becomes effective on 1 September 2027.