Article 15-29. Financial Ombudsman of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

Home / Laws / Article 15-29. Financial Ombudsman of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

1. A financial ombudsman is an individual who is independent in his activity and carries out pre-trial settlement of disputes arising from a financial product agreement concluded between a consumer of financial services and a behavioral supervision entity, as well as disputes between insurance organizations arising from an insurance contract, through consideration of appeals from consumers of financial services and insurance organizations on issues stipulated by the Legislation of the Russian Federation. paragraph 2 of Articles 15-28 of this Law.

2. The Financial Ombudsman is guided in his activities by the following principles:

1) legality;

2) equality of the parties in the consideration of the dispute;

3) independence and impartiality of the Financial Ombudsman in dispute resolution;

4) non-disclosure of information obtained during the consideration of a dispute that constitutes an official, commercial, banking or other legally protected secret;

5) respect for the rights and legitimate interests of the parties to the dispute under consideration;

6) transparency of the dispute resolution procedure, as well as the validity of the decision on the dispute;

7) compliance with the legislation of the Republic of Kazakhstan on languages when considering a dispute;

8) the binding nature of the Financial Ombudsman's decision for the parties to the dispute under consideration, taking into account the requirements established by Articles 15-33 of this Law.

3. The procedure for carrying out the activities of financial ombudsmen and the financial Ombudsman service, including providing the authorized body with information on received and reviewed appeals from consumers of financial services, is determined by this Law and a regulatory legal act of the authorized body.

4. The financial ombudsman acts as:

1) Chief Financial Ombudsman;

2) financial ombudsmen in the relevant areas of financial services.

5. To be elected a financial ombudsman and during the period of the financial Ombudsman's activity, a person must meet the following requirements:

1) higher economic and (or) legal education;

2) having an impeccable business reputation;

3) at least five years of work experience in the provision and (or) regulation of financial services;

4) there is information that during the five years preceding the nomination of a person for the position of financial ombudsman, the person was not a senior employee of a financial institution, including a non–resident financial institution of the Republic of Kazakhstan, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of an insurance a non–resident broker of the Republic of Kazakhstan in the period not more than one year before:

applying the settlement regime to the bank;

revocation of the license of a financial organization, including a non–resident financial organization of the Republic of Kazakhstan, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non–resident insurance broker of the Republic of Kazakhstan, which led to their liquidation and (or) termination of activities in the financial market;

the entry into force of a judicial act on the compulsory liquidation of a financial institution, including a non–resident financial institution of the Republic of Kazakhstan, or declaring it bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan, the legislation of the state of which the non–resident financial institution of the Republic of Kazakhstan is a resident.;

the entry into force of a judicial act on the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan in cases established by the laws of the Republic of Kazakhstan;

5) there is information that there is no court decision that has entered into legal force regarding the person declaring the person incompetent or with limited legal capacity.;

6) the presence of information that a person is not registered for dynamic monitoring of mental behavioral disorders (diseases), including those caused by the use of psychoactive substances, in organizations of the mental health service;

7) proficiency in the state language.

The Financial Ombudsman may not hold any of the positions in subjects of behavioral supervision, collection agencies, authorized body, National Bank of the Republic of Kazakhstan, organizations (public associations, unions, associations), whose members are subjects of behavioral supervision and (or) collection agencies, as well as be affiliated with the subject of behavioral supervision and (or) collection agencies. agencies.

6. The election of the Chief Financial Ombudsman and financial ombudsmen in the relevant areas of financial services is carried out by the Council of the Financial Ombudsman Service from among candidates proposed by the Council of the Financial Ombudsman Service and previously agreed with the authorized body for compliance with the requirements set out in paragraph 5 of this Article.

Financial ombudsmen are elected for a three-year term. The same person may be elected Financial Ombudsman no more than twice in a row.

The procedure for the election and early termination of the financial ombudsman's activities is determined by this Law and a regulatory legal act of the authorized body.

7. The exclusive competence of the Chief Financial Ombudsman includes the following issues:

1) exercising the powers of the Head of the Financial Ombudsman Service;

2) organization of the implementation of decisions of the Council of the Financial Ombudsman Service;

3) representation of the Financial Ombudsman service in relations with third parties;

4) issuing a power of attorney for the right to represent the Financial Ombudsman service in relations with third parties;

5) issuing an order on the appointment of employees of the Financial Ombudsman service, on their transfer and dismissal;

6) determination of the remuneration system for employees of the Financial Ombudsman service who are not financial ombudsmen;

7) submission of the budget of the Financial Ombudsman Service for approval by the Council of the Financial Ombudsman Service;

8) exercise of other powers stipulated by the statute of the Financial Ombudsman Service.

The Chief Financial Ombudsman has the right to review and make decisions on appeals from consumers of financial services in the relevant financial services sector.

8. The competence of the financial Ombudsman in the field of insurance services includes:

1) making decisions on the application of certain provisions of the methodology used to assess the amount of damage caused to a vehicle, taking into account the specifics of compulsory civil liability insurance for vehicle owners;

2) carrying out an assessment of the amount of damage caused to property;

3) sending mandatory instructions to the subjects of behavioral supervision on the exclusion (amendment) of the terms of insurance contracts that infringe or restrict the rights of consumers of insurance services.

9. The decision on early termination of the powers of financial ombudsmen is made by the Council of the Financial Ombudsman Service on the following grounds:

1) identification of non-compliance with the requirements established by paragraph 5 of this Article;

2) repeated (three or more times within twelve consecutive calendar months) violation of the requirements of the legislation of the Republic of Kazakhstan on issues within its competence;

3) inability for health reasons or for other reasons for a long time (at least four months in a row) to perform their duties.

Early termination of the powers of financial ombudsmen on their initiative is carried out on the basis of a written notification from the Council of the Financial Ombudsman Service, submitted at least one month before the termination of powers in accordance with the procedure established by the internal rules of the Financial Ombudsman service.

The Law of the Republic of Kazakhstan dated July 4, 2003 No. 474-II.

This Law regulates public relations related to the implementation of state regulation, control and supervision of the financial market and financial organizations, and is aimed at increasing the stability of the financial system of the Republic of Kazakhstan and creating conditions to prevent violations of the rights and legitimate interests of consumers of financial services.

President

Republic of Kazakhstan

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