RUSSIA: first institute of pre-trial settlement to be established on the financial market

The Central Bank of Russia has appointed the first financial ombudsman for pre-trial settlement of financial disputes - Ilya VORONIN, the advisor to the Head of the Central Bank Elvira NABIULLINA, said the First Deputy Chairman of the Central Bank Sergey SHVETSOV.

The position of financial ombudsman was established in Russia based on a new law, which comes into force on September 3. From that date, Ilya VORONIN will perform new duties with a term of 5 years. Previously he headed departments at the Ministry of Labor and Ministry of Health and Social Development, was a Deputy Minister of Health, worked for Presidential Administration, from October 2013 he was the director of the Russian Audit Chamber Administration and at the end of June 2018 he was transferred to the position of Advisor to the Head of the Central Bank, wrote ASN portal.

Besides this, the law provides for establishment of a financial commissioner responsible for certain market sectors. Financial disputes will be considered in the case of property claims up to RUB 500 thousand and MTPL claims will be subject to consideration regardless of claims amounts. As of now, people have to apply to court, which leads to extra costs and in many cases dispute settlement lasts many months.

The law stipulates staggered implementation of new rules for various types of financial organizations. Insurance companies in terms of MTPL and other motor classes are obliged to join by June 1, 2019, all other insurance classes - by November 28, 2019. Microlenders - by January 2020; banks, non-state pension funds, consumer cooperatives and others - in January 2021.

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