The National Bank of Ukraine is bewildered by Parliament's decision to return Draft Law No. 2456-d On Amendments to Some Laws of Ukraine regarding the improvement of Financial Services Consumer Rights Protection to the relevant parliamentary committee for reconsideration to get it finalized to proceed to a second re-reading. A total of 227 MPs voted in favor of this bill.
Draft Law No.2456-d builds on European experience in ensuring financial services consumer rights protection. This document, which has been in the making since December 2015 is the result of joint and painstaking efforts by MPs, the central bank, international donors and the banking community. The entire financial market is awaiting the passage of this bill.
Draft Law No. 2456-d is intended to establish a legal framework to regulate relations between individuals and banks and financial institutions in accordance with best EU practices. The NBU believes that there are two ways to address this issue: 1) promote financial awareness among the public; 2) enhance the legal protection of financial services consumers. These measures will help restore trust between counterparts to financial transactions. Draft Law No. 2456-d is primarily intended to address gaps and inconsistencies in laws and regulations on consumer rights protection. Such legal shortcomings lead to confusion and inappropriate application of legal norms by the judicial system. This draft law sets out similar requirements for advertising of services and disclosure of information for banks and non-banking financial institutions.
There is no specific legal framework to protect the rights of financial services consumers in Ukraine. These rights are only covered by the Law of Ukraine on Consumer Rights Protection. Specific requirements for disclosure of information about financial products and responsibility for violation of the rights of financial services consumers have not been established, thus leaving the users of financial services unprotected against unfair practices.
Therefore, this draft law assigned the NBU a mandate to ensure the protection of consumers of banking and other financial services rendered by banks. Draft Law No. 2456-d shall authorize the NBU to determine the minimum information that banks and non-bank financial institutions are required to provide to consumers in cases that are not covered by applicable laws.