Zelensky signs law on protection of rights of financial services consumers

President of Ukraine Volodymyr Zelensky has signed a law amending certain legislative acts of Ukraine regarding the protection of rights of financial services consumers, according to the website of the Verkhovna Rada.

As reported, the law adopted by the parliament on September 20, 2019, provides for granting financial market regulators, including the National Bank of Ukraine, the National Commission on Securities and the Stock Market, and the National Commission for the State Regulation of the Financial Services market, with the authority to apply influence measures to financial institutions and impose administrative penalties for violation of consumers' rights.

In addition, the law includes norms that define violations of the rights of consumers of financial services as part of an administrative offense in the Code of Administrative Offenses.

For all financial institutions, lenders, a single format for calculating the total cost of the loan and a single formula for calculating the real annual interest rate are established, and the results of such calculations should be indicated in the consumer loan agreement.

The same rules are introduced for banks and non-banking financial institutions in the field of advertising financial services and the provision of information about them, and the same liability for violation of consumers' rights is established.

The adoption of the law on protection of the rights of financial services consumers was one of the conditions for cooperation between Ukraine and the IMF and other international financial organizations.