June 14, 2013

Financial Consumer Financial Consumer PolicyPolicy

in Russian Federationin Russian FederationSvetlana Mukhina,

Deputy DirectorDepartment of Consumer Rights Protection

Federal Serviceon Customers' Rights Protection

and Human Well-being Surveillance(Rosporebnadzor)

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Improving the National System of ConsumerRights Protection

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Provisions of the Article 9 of the Federal Law № 161-FZ (27 June 2011)“On the National Payment System” will come into effect since January 1, 2014.These provisions will establish additional protection of consumer economic interests, when using electronic payment instruments (bank transfers)

Draft Federal Law № 105976-6 “On amendments to the Federal Law“On insolvency (bankruptcy)” and certain Legislative Acts of the Russian Federation as related to the regulation of rehabilitation procedures, applying to the debtors”

Draft Federal Law “On telecommunication services”

Draft Federal Law “On amendments to the Federal Law “On Consumer Rights Protection”” (merchandise, works, services payment, by cash or noncash paymentsand payment cards)

Draft Federal Law “On amendments to the Criminal Code of the Russian Federation and certain Legislative Acts of the Russian Federation” (financial pyramid prohibition)

Draft Federal Law “On consumer credit”

Improving the National Systemof Financial Consumer Rights Protection

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Financial Literacyand Institution of Financial Ombudsman in Russia

Since 2008 federal executive bodies cooperate withthe World Bank, Russian bank associations and consumer unions

in the field of the establishment of the institutionof financial ombudsman for the Russian Federation

One of the goals of Financial Education and Financial Literacy Project is to pilot a model of financial ombudsman as a

mechanism of extrajudicial dispute resolution for Russian consumers

of financial services.

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“The head of each federal agency whose activities bear significantly on consumer welfare designatea special assistant in his office to advise and assist him in assuring adequate and effective attentionto consumer interests in the work of the agency, to act as liaison with consumer and related organizations,and to place increased emphasis on preparing and making available pertinent research findingsfor consumers in clear and useable form”.

Special Message to the Congress on Protecting the Consumer InterestJ.F. Kennedy, March 15, 1962

Improving the System of Consumer Rights Protection:Consumer Testing of Standard Regulations

Draft bills, containing norms on consumer rights protection or influencing relations with customers, will be sent to the Rospotrebnadzor to evaluateimpact on legal relations with consumerimpact on legal relations with consumer.

This evaluation will assess compliance of the draft bill with the legislation on consumer protection in order to identify provisions that infringe consumer rights,or provide conditions for consumer rights infringement, or impede realizationof these rights.

Draft Decree of the Government of the Russian Federation “On amendments to the Protocol of the Government of the Russian Federation”

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Broadening Executive Powers of Rospotrebnadzorin Consumer Rights Protection

Rospotrebnadzor is:

responsible for drafting and implementing public policy anddrafting and implementing public policy and legal regulation legal regulation in the field of consumer protectionin the field of consumer protection

exercises elaboration of strong requirements in the fieldof strong requirements in the field of consumer protection of consumer protection

carries out examination of adherence to technical regulationstechnical regulations in accordance with the established procedure

•Decree of the Government of the Russian Federation of April 6, 2004, № 154 “On the Issues of the Federal Supervision Agency for Customer Protection and Human Welfare”.• Decree of the Government of the Russian Federation of June 30, 2004 № 322 “On the Recognition of the Federal Service on Customers' Rights Protection and Human Well-being Surveillance” as amended by the Resolution of the Government of the Russian Federation on January 30, 2013, №65.

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Development and Management of Public Information Resource in the Field of Consumer Rights Protection

Rospotrebnadzor is authorized to develop and manage the public information resource in the field of consumer rights protection, as well as to coordinate the activities of authorized federal executive authorities exercising state control (supervision)over compliance with safety requirements, determined technical regulations, and customers non-governmental associations(their associations, unions), related to participation in the development of above-mentioned resource.

• Item 8 Article 40 of the Law of the Russian Federation of February 7, 1992, № 2300-1 “On Consumer Rights Protection”• Decree of the Government of the Russian Federation of February 16, 2013, № 129 “On Public Information Resource in the field of Consumer Protection”

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Rospotrebnadzor’s Methods for Improvementof Consumer Protection

84 consulting centers in all subjects of

Russia

521

consulting points

740

consultants

(Rospotrebnadzor

staff)

Civil law protection of the consumers Issue of injunctions to eliminate the violations for the banks Lections, open seminars, training, concourses Working with media Functioning of Consulting Council of Rospotrebnadzor Providing consumers with consultations:

through public reception offices and telephone hotlines in consulting centers and consulting points for consumers in all regions of Russia

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March 15 – World Consumers Rights Protection Day.Rospotrebnadzor practice

In 2013 Rospotrebnadzor experts performed more than 35 000 of information events for World Consumers Rights Protection Day in Russia:

3 500 of young people and136 000 of students and schoolchildren

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Example of organization of financial consumer protection – Tver region

Consulting center in Tver 9 consulting points in the region

TVER REGIONTVER REGION

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Growing number of Rospotrebnadzor’s consultationsfor financial consumers

Source: Rospotrebnadzor regional offices’ data.

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Administrative activities of regional Rospotrebnadzor offices on financial consumer protection

Indicator 2008 2009 2010 2011 2012 INCREASE,

%

(2012 to 2008)

Number of control activities performed 665 582 876 1390 1 388 108108

Number of administrative investigations 199 273 658 804 898 351351

Number of administrative reports issued 238 401 950 1219 1 494 528528

Number of decisions about bringingto administrative account

197 326 720 1092 1 083 450450

Number of decisions to dismissthe case

63 113 183 206 239 279279

Number of decisions appealedby the banks

124 188 394 570 494 298298

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Conclusions given by Rospotrebnadzorfor civil cases on financial consumer protection issues

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Source: Supreme Court of the Russian Federation.

Number of cases on financial consumer protectionreviewed by the courts of general jurisdiction

(in all consumer protection cases concerning services)

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Improving the National System of Consumer Rights Protection: open analysis of the results

Publication of the Government Report “On the Protection of Consumer Rightsin the Russian Federation” is recommenced in 2013:

the report is prepared by Rospotrebnadzor, published and would be brought in the Government of the Russian Federation before June 1 of the year, following the reporting year,the report is published as a separate edition and is submitted to the federal executive authorities and the federal authorities of the federal subjects of the Russian Federation, as well as posted on the official web-site of Rospotrebnadzor (its territorial bodies) in the Internet at: http://rospotrebnadzor.ru

• Article 40 of the Law of the Russian Federation of February 7, 1992 № 2300-1 «On Consumer Rights Protection»• Decree of the Government of the Russian Federation of April 5, 2012, №28 «Governmental Report on Consumer Rights Protection in the Russian Federation»• Decree of the Government of the Russian Federation of February 16, 2013 № 129 «On Public Information Resource in the field of Consumer Rights Protection»

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Rospotrebnadzor’s participation in international cooperationfor better financial consumer protection

Answers on FSB Questionnaire on ConsumerFinance Protection were collected within the

framework of Russia’s participation in international research on financial consumer protection conducted

by Financial Stability Board.

Report on the Status of Financial Consumer Protection has been prepared within the framework of a joint project of the Ministry of Finance of the Russian Federation and the World Bank “Financial Education and Financial Literacy Project for the Russian Federation”.It will be presented in English on the G20 Summit in September 2013.

S.-Petersburg

Thank youfor your attention!

http://rospotrebnadzor.ru