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The regulations for the sale of life insurance policies will change in Russia

From July 1, the Bank of Russia is introducing new rules for the sale of investment financial products through banks, IA PRIME reports.
The regulations for the sale of life insurance policies will change in Russia

Banks will be required to inform clients about the features and risks of investment products, as well as that return on them is not guaranteed and investments are not insured by the state deposit insurance system. The rules apply to securities, derivative financial instruments, life insurance policies with an investment component, and individual pension plans. These requirements are established by the instruction of the Bank of Russia, which will come into force on July 1, 2022.

“The fundamental innovation introduced by the regulator is that what a bank employee says to a client must strictly correspond to the information communicated to the client in writing. As most often people encounter misspelling, the substitution of one financial product for another, in bank offices, when they are verbally assured that investment life insurance or another complex product is supposedly as reliable as a deposit, and at the same time more profitable,” they emphasize in the Central Bank.

The regulator’s authority to establish rules for the sale of non-banking products for banks is enshrined in a law adopted in the summer of 2021. The Bank of Russia will have the right to issue instructions to suspend the sale of financial products for which the bank repeatedly violates the rules for informing. In special cases, the regulator will be able to require the bank to buy back such products from customers who wish to sell them at the purchase price.

The regulations consider the basic standard requirements for protecting the rights and interests of clients of non-credit financial institutions (NFIs), equalizing the requirements for NFIs and banks.

Source: https://1prime.ru/finance/20220422/836729225.html

Photos are from open sources.

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