Article 15-30. Financial Ombudsman Service of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

Home / Laws / Article 15-30. Financial Ombudsman Service of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

1. The Financial Ombudsman Service is a non-profit organization established in the form of a private institution that ensures the activities of financial ombudsmen.

The founder of the Financial Ombudsman Service is a non-profit organization in the form of an association that unites subjects of behavioral supervision who collectively own at least seventy percent of financial assets in the financial market.

Only one financial ombudsman service may be established and operate in the territory of the Republic of Kazakhstan.

2. The founder of the Financial Ombudsman Service approves the statute of the Financial Ombudsman Service and introduces amendments and (or) additions to it.

3. The tasks of the Financial Ombudsman Service are:

1) receiving and processing requests from consumers of financial services, and providing consumers of financial services with decisions made by the financial ombudsman on their requests;

2) improving the level of financial literacy of consumers of financial services, including through the development and implementation of appropriate measures;

3) ensuring the use of specialized software in the Financial Ombudsman service to automate the accounting and processing of financial services consumers, as well as the functioning of the collective debt settlement platform and its improvement;

4) ensuring the implementation of a call center or hotline in the Financial Ombudsman service to provide consulting services to consumers of financial services;

5) notification of the authorized body on violations of the requirements of the legislation of the Republic of Kazakhstan revealed by subjects of behavioral supervision during consideration of appeals from consumers of financial services no later than three working days after the day of detection;

6) providing recommendations to the authorized body on improving the regulatory legal acts of the authorized body for the protection of the rights of consumers of financial services;

7) control over the payment by subjects of behavioral supervision of mandatory contributions and (or) other payments to finance the financial Ombudsman service.

4. The following information is posted on the Internet resource of the Financial Ombudsman Service:

1) the full name, address (location), telephone numbers, and operating hours of the Financial Ombudsman Service, including its divisions and representative offices;

2) the composition of the members of the Council of the Financial Ombudsman Service;

3) disputes to be considered by the Financial Ombudsman;

4) the procedure for receiving and reviewing applications;

5) annual report on the results of the activities of financial ombudsmen;

6) internal rules on the implementation of the activities of financial ombudsmen and the Financial Ombudsman Service;

7) other information in accordance with the procedure for carrying out the activities of financial ombudsmen and the financial Ombudsman service, approved by the regulatory legal act of the authorized body.

5. The Financial Ombudsman Service ensures the functioning of the platform for the collective settlement of individual borrowers' debts under consumer bank loan agreements and consumer micro–credit agreements not secured by collateral (hereinafter referred to as the platform).

The platform is designed for interaction of borrowers – individuals, banks, microfinance organizations, collection agencies and the financial Ombudsman in order to develop coordinated solutions for the settlement of overdue debts (hereinafter referred to as participants).

The platform provides:

1) collection, processing and analysis of information about borrowers who have applied for debt settlement;

2) formation of proposals and recommendations on debt settlement;

3) automation of data exchange between settlement participants;

4) providing the authorized body with access to analytical data for monitoring and evaluating the effectiveness of measures to reduce the debt burden of individual borrowers.

The functioning of the platform, including the terms of connection of participants, access levels, exchange and protection of personal data, is determined by a regulatory legal act of the authorized body.

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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