Regulator develops framework for behavioural supervision
The Bank of Russia created a working group on interaction with self-regulatory organisations established by microfinance market participants. The group will discuss issues related to the microfinance organisations (MFOs), to which the majority of complaints and appeals are addressed and other issues arising in the course of interaction between MFOs and the Service for Protection of Financial Services Consumers and Minority Shareholders. The establishment of the working group was announced on the first joint meeting of the Service’s management and market participants.
This new way of communication that allows to promptly discuss particular cases is likely to reduce the number of violations. ‘This is the framework for behavioural supervision over the compliance with the rules of conduct of organisations towards their customers,’ – said the head of the Service Mikhail Mamuta. ‘We intend to intensify communication with market participants regarding the most common problems they face, how to avoid further violations of consumer rights and improve mutual trust between the market and the customers,’ he added.
The first meeting of the working group focused on the most common violations by MFOs identified by the regulator: violations in special conditions to the consumer credit agreement (altering or excluding significant provisions). Market participants, in turn, were curious about the details of procedures for communication with the Bank of Russia, including through the personal account.
List of permanent members of the working group includes representatives of self-regulatory organisations of MFOs (there are three operating in the market). Moreover, each meeting will be attended by the representatives of MFOs, to which the majority of the complaints are addressed during the reporting period.
Similar working groups with representatives of insurance companies, non-governmental pension funds and professional securities market participants have already been established.