June 14 , 2013

1. Federal Serviceon Customers' Rights Protectionand Human Well-being Surveillance(Rosporebnadzor) Financial Consumer Policyin Russian Federation Svetlana Mukhina, Deputy Director Department of Consumer Rights Protection June 14, 2013

2. Improving the National System of ConsumerRights Protection

3. Improving the National Systemof Financial Consumer Rights Protection • 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 ornoncashpaymentsandpayment 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”

4. Financial Literacyand Institution of Financial Ombudsman in Russia One of the goals of Financial Education and Financial Literacy Projectis to pilot a model of financial ombudsman as a mechanism of extrajudicial dispute resolution for Russian consumersof financial services. 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

5. Improving the System of Consumer Rights Protection: Consumer Testing of Standard Regulations “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 Draft bills, containing norms on consumer rights protectionor influencing relations with customers, will be sent to the Rospotrebnadzor to evaluateimpact on legal relations with consumer. This evaluation will assesscompliance of the draft bill with the legislation on consumer protection in order to identify provisionsthat infringe consumer rights,or provide conditions for consumer rights infringement, orimpede realizationof these rights. Draft Decree of the Government of the Russian Federation “On amendments to the Protocol of the Government of the Russian Federation”

6. Broadening Executive Powers of Rospotrebnadzorin Consumer Rights Protection Rospotrebnadzor is: • responsible for drafting and implementing public policy and legal regulationin the field of consumer protection • exerciseselaboration of strong requirements in the field of consumer protection • carries out examination of adherence totechnical regulationsin accordance with the established procedure • Decreeof 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”. • Decreeof the Government of the Russian Federation ofJune 30, 2004 № 322 “On the Recognition of the Federal Service on Customers' Rights Protection and Human Well-being Surveillance” as amendedby the Resolution of the Government of the Russian Federation on January 30, 2013, №65.

7. Development and Management of PublicInformation Resource in the Field of Consumer Rights Protection Rospotrebnadzoris 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 authoritiesexercising 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” • Decreeof the Government of the Russian Federation ofFebruary16, 2013, № 129 “On Public Information Resource in the field of Consumer Protection”

8. Rospotrebnadzor’s Methods for Improvementof Consumer Protection • 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 521consulting points 740consultants (Rospotrebnadzor staff) 84 consulting centers in all subjects of Russia

9. 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: • 3500 of young people and • 136 000 of students and schoolchildren

10. Example of organization of financial consumer protection – Tver region Consulting center in Tver 9 consulting points in the region TVER REGION

11. Growing number of Rospotrebnadzor’s consultationsfor financial consumers Source: Rospotrebnadzor regional offices’ data.

12. Administrative activities of regional Rospotrebnadzor offices on financial consumer protection

13. Conclusions given by Rospotrebnadzorfor civil cases on financial consumer protection issues

14. Number of cases on financial consumer protectionreviewed by the courts of general jurisdiction(in all consumer protection cases concerning services) Source: Supreme Court of the Russian Federation.

15. 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 andthe federal authorities of the federal subjects of the Russian Federation, as well as posted on the official web-site of Rospotrebnadzor(itsterritorial 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» • Decreeof the Government of the Russian Federation of April 5, 2012, №28 «Governmental Report on Consumer Rights Protection in the Russian Federation» • Decreeof the Government of the Russian Federation ofFebruary16, 2013 № 129 «On Public Information Resource in the field of Consumer Rights Protection»

16. Rospotrebnadzor’s participation in international cooperationfor better financial consumer protection Answers on FSB Questionnaire on ConsumerFinance Protectionwerecollected 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 Protectionhas 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

17. Thank youfor your attention! http://rospotrebnadzor.ru