BEHAVIOURAL SUPERVISION OF THE BANK OF RUSSIA IN PROTECTION OF FINANCIAL SERVICES CONSUMERS' RIGHTS

Cover Page

Abstract


The article is devoted to a new type of supervision of financial market participants - behavioral supervision of the Bank of Russia. Behavioral approach to the protection of financial services consumers’ rights is treated in the “zone of action” of the administrative-legal regulation mechanism. The authors point to the public nature of the subject composition of its implementation (the Bank of Russia and the executive authorities); the possibility of using the judicial (consideration of citizens' appeals) and (as a result) jurisdictional (bringing the violators of the financial services consumers’ rights to administrative responsibility) procedural administrative and legal algorithms. The article outlines the types of the behavioral supervision regime of the Bank of Russia. Reactive behavioral supervision is a reaction of the Bank of Russia to complaints or received information about unfair behavior of the financial company towards the consumer. Preventive behavioral supervision is associated with the prevention of serious violations of citizens’ rights by supervised organizations. Particular attention is paid to consumer risks, the identification of which is one of the goals of behavioral supervision. Supervisory behavioral aspects are closely associated with the financial consumer protection as an important part of the control and supervising activity of the Bank of Russia. Also, the authors analyze the goals and content of behavioral approach to the financial management aimed at minimizing unfair practices. To gain the aim of the research the authors apply general scientific methods (synthesis and analysis, induction and deduction, generalizations) and special methods (formal-legal method). By using general scientific methods and formal-legal method authors investigate the organizational and legal basis for the implementation of behavioral supervision in Russia and determine its advantages and disadvantages. The study expresses assertion that there is the need to place behavioral supervision in the legislative framework, to formulate a definition of behavioral supervision, to clarify the scope and powers of the subjects of its implementation, to determine the content of administrative procedures for the implementation of various types of behavioral supervision within the framework of the interaction of the Bank of Russia and the executive bodies involved in its implementation.


About the authors

Irina V. Mikheeva

National Research University Higher School of Economics

Author for correspondence.
Email: imikheeva@hse.ru
25/12 Bolshaya Pecherskaya str., 603155, Nizhny Novgorod, Russian Federation

Doctor of Legal Sciences, Associate Professor, Head of the Constitutional and Administrative Law Department

Elizaveta A. Dolkova

National Research University Higher School of Economics

Email: edolkova@hse.ru
25/12 Bolshaya Pecherskaya str., 603155, Nizhny Novgorod, Russian Federation

Postgraduate Student

References

  1. Abakirova, A.M., Abdyraev, M.A., Vasilevitch, G.A., et al. (2018) The Modernization of Administrative Legislation (Goals, Tasks, Principles and Actual Vectors). In: Nozdrachev, A.F. (ed.). Moscow: INFRA-M. (in Russian).
  2. Abrams, R.K., Taylor, M. (2000) Issues in the Unification of Financial Sector Supervision. International Monetary Fund. doi: 10.5089/9781451874938.001.
  3. Armour, J., Awrey, D., Davies, P., et al. (2016) Principles of Financial Regulation. Oxford: Oxford University Press. doi: 10.1093/acprof:oso/9780198786474.001.0001.
  4. Baily, M.N., Klein, A., Schardin, J. (2017) The Impact of the Dodd-Frank Act on Financial Stability and Economic Growth, RSF: The Russell Sage Foundation Journal of the Social Sciences, 3 (1), 20–47. doi: 10.7758/rsf.2017.3.1.02.
  5. Bonner, A.T. (2016) Administrative Proceedings in the Russian Federation: Myth or Reality? (or a Dispute Between Processualist and Administrativist). Zakon. (7), 24–51. (in Russian).
  6. Brener, A.H., Chiu, I. H.-Y. (2019) Articulating the Gaps in Financial Consumer Protection and Policy Choices for the Financial Conduct Authority — Moving beyond the Question of Imposing a Duty of Care. Capital Markets Law Journal, 14 (2), 217–250. DOI: 10.1093/ cmlj/kmz002.
  7. Gorlovskaya, I.G. (2018) Development of Tools of Regulation of Professional Activity on the Securities Market in Conditions of Mega-Regulation of the Russian Financial Markets. Herald of Omsk University. Series “Economics”, 4 (64), 21–31. doi: 10.25513/1812-3988. 2018.4.23-33. (in Russian).
  8. Grace, M.F., Klein, R.W. (2009) The Future of Insurance Regulation in the United States. Washington: Brookings Institution Press.
  9. Guznov, A.G. (2017) Self-regulation in the Financial Markets in the System of Supervision of Financial Organizations. Courier of the Kutafin Moscow State Law University (MSAL). 8 (36), 121–129. doi: 10.17803/2311-5998.2017.36.8.121-129. (in Russian).
  10. Guznov, A.G., Rozhdestvenskaya, T.E. (2019) Publichno-pravovoe regulirovanie finansovogo rynka v Rossiiskoi Federatsii [Public Legal Regulation of the Financial Market in the Russian Federation]. 2nd ed. Moscow: Yurait Publ. (in Russian).
  11. Hodges, C. (2015) Law and Corporate Behaviour: Integrating Theories of Regulation, Enforcement, Compliance and Ethics. Oxford: Bloomsbury Publishing. DOI: 10.5040/ 9781474201124.
  12. Khan, A. (2018) A Behavioral Approach to Financial Supervision, Regulation, and Central Banking, availiable at: https://www.imf.org/~/media/Files/Publications/WP/2018/wp18178. ashx (Accessed 12 December 2019).
  13. Korischenko, K.N., Morozov, S.V. (2017) Formirovanie sistemy prudentsial'nogo nadzora za professional'nymi uchastnikami rynka tsennykh bumag [Formation of a Prudential Supervision of Securities Market’s Professional Participants System]. Moscow: Russian Academy of national economy under the President of the Russian Federation, availiable at: ftp://w82.ranepa.ru/rnp/wpaper/051710.pdf (Accessed 12 December 2019). (in Russian).
  14. Kovas, A. (2015) Understanding the Financial Conduct Authority. Leicester: Troubador Publishing Ltd.
  15. Kurakin, A.V., Karpukhin, D.V. (2017) Prudential Component of Banking Supervision. NB: Administrative Law and Administration Practice. 2, 10–19. doi: 10.7256/2306-9945.2017. 2.22992. (in Russian).
  16. Lui, A. (2017) Financial Stability and Prudential Regulation: A Comparative Approach to the UK, US, Canada, Australia and Germany. Oxon: Routledge. doi: 10.4324/9781315707563.
  17. Petrov, A.A. (2018) Digitalization of the Economy: Problems, Challenges, Risks. Trade policy. 3 (15), 9–30. doi: 10.17323/2499-9415-2018-3-15-9-3. (in Russian).
  18. Porter, R.B., Glauber, R.R., Healey, Th.J. (2011) New Directions in Financial Services Regulation. London: MIT Press. doi: 10.7551/mitpress/9780262015615.001.0001.
  19. Rakhmanina, N.V. (2018) Legal Regulation of Financial Services under Laws of the Russian Federation. National Interests: Priorities and Security. 14 (1), 37–47. doi: 10.24891/ni.141. 37. (in Russian).
  20. Sannikova, L.V. (2017) Behavioural Supervision Formation in Russia. Russian Journal of Money and Finance. 10, 51–56. (in Russian).
  21. Shcherbinin, T.A. (2015) The System of Regulative Instruments to Ensure the Financial Sustainability of the National Economy in the Context of Globalization. Izvestiya SeveroKavkazskogo nauchnogo tsentra vysshey shkoly. Obshchestvennye nauki. 3, 103–108. doi: 10.18522/0321-3056-2015-3-103-108. (in Russian).
  22. Starilov, Yu.N. (2018) Administrative Proceedings and Administrative Procedures: on Systemic Interaction and Due Level of Legal Regulation. Administrative Law and Procedure. 3, 7– 23. (in Russian).
  23. Tikhomirov, Yu.A. (2015) Law: Forecasts and Risks. Moscow: Institute of Legislation and Comparative Law under the Government of the Russian Federation: INFRA-M Publ. doi: 10.12737/11255. (in Russian).
  24. Tikhomirov, Yu.A. (2010) Legal Regulation: Theory and Practice. Moscow: The Law Formula Publ. (in Russian).
  25. Tikhomirov, Yu.A. (2011) Behavioral Mechanism of Law. “Public Administration Issues” Journal. 4, 92–105. (in Russian).

Statistics

Views

Abstract - 107

PDF (Russian) - 49

Cited-By


PlumX

Dimensions

Refbacks

  • There are currently no refbacks.

Copyright (c) 2020 Mikheeva I.V., Dolkova E.A.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies