Yaroslav Kulick, the head of ART DE LEX Competition Practice, took part in the round-table discussion «Judicial and extrajudicial mechanisms of customer rights and interests defense on the market of financial services: international experience and Russian

On the 19th of November 2013 the round-table discussion «Judicial and extrajudicial mechanisms of customer rights and interests defense on the market of financial services: international experience and Russian practice» was held at the Agency of strategic initiatives.

This work is held within the framework of team-work of «Customer rights defense level increasing» sub-group of interdepartmental workgroup on monitoring and control of real fulfillment of «Competition development and antitrust practice betterment» action plan («roadmap») attached to State Commission on the issues of competition and small and medium businesses development, and also of appropriate workgroup of the Agency of strategic initiatives.

Representatives of the State machinery of the Russian Federation, federal executive agency, State Duma and Council of Federation, members of public businessmen communities, representatives of financial sphere, such as of Central bank of Russia, Russian Bank Association, All-Russian insurer union, and also the Embassy of Great Britain workers took part in the discussion.

Participants of meeting discussed draft law on financial ombudsman institute creation.

As Dmitry Yanin, the head on Confederation of customer community rights, explained: «This document is not introduced to the State Duma yet, as there in no obligatory membership principle in it, and it is not clear what specifically organizations are included in the system. The last draft law version is now in a stage of regulative effect review».

Victor Klimov, deputy of the State Duma of the Russian Federation, member of «Opora Rossii» presidium, remained that Vladimir Putin, the president of Russian Federation, had declared at the St Petersburg international economic forum about necessity of class suit institute launching until the end of this year.

Victor Klimov said: «This draft law is very relevant – without such threat to monopolists we won’t be able to establish order in the markets of housing and communal services and retail trade. At the same time there will be no transparency in calculations, if lawyers do not have any motive, and serious problems may arise».

Tamara Lordkipanidze, the «Merani Consulting» director, remark in her report that according to the survey indexes of customer rights defense are the best in Great Britain among the European countries (87% had answered that they felt themselves protected).

Tamara Lordkipanidze told about financial ombudsman work technology in Great Britain: «There are two main agencies that regulate customer financial service defense at the state level. They are agency of prudential control and office of business ethics. Financial ombudsman in independent and non-state structure. It is free for customers, and ombudsman’s decision is ultimate. The service exists at the expense of license tax from financial organizations. In addition financial organizations pay for each case, that goes through financial ombudsman».

Dmitry Yanin in his turn said that in Great Britain financial organizations are not allowed to enter the market without their participation in the system of pre-trial dispute resolution. This fact decreases the load of judicial system and increases confidence in financial organizations.

Svetlana Mukhina, deputy head of Administration of customer rights defense «Rospotrebnadzor», said: «There is one lacuna in the law on customer rights defense – it poorly reflects realization of customer rights, especially pre-trial regulations.Financial ombudsman is economically profitable to business, as it is lower costs as compared with trial charges for business. Financial ombudsman unload the law-courts».

Pavel Medvedev, councilor of president of Russian Bank Association, who works with hundreds of organizations as financial ombudsman, said that the number of insurance complaints today was nor so big, because people meanwhile did not believe that it would work.

Pavel Medvedev marked: «We reviewed charges for such service for the initial period: 70 persons a year, and fewer later. No matter how big this agency can be, each hired person is economy for the society».

For the bank it would by economically profitable to combine similar suits during dispute resolution at the court. Financial service is typical and obeys strict rules, so complaints will be similar.

Yaroslav Kulick, head of ART DE LEX Law Firm Competition Practice, member of international association of lawyer of NP «Competition Support», believes: «It will allow courts to judge suits more qualitatively, not spending time for equal technical procedures».

Anatoly  Maltsan, member of Committee on competition development of Russian Union of Industrialists and Entrepreneurs, expressed opinion of businessmen: «We do not have objections to class suits, they are objective necessity. There are offences that include millions of people, so collective defense is needed. The institute is not to turn into powerful financial stimulus for earning money, the European model is closer».

Alexander Vlasov, project leader of Department of business initiative monitoring of ASI, reminded that class suits actions realization is included in the roadmap «Competition development and antitrust practice betterment». The workgroup is planning to examine and to give rate to the quality of this point realization at the December of 2013 (Responsible executor: Ministry of Justice of Russia)

Source: Site ASI