NCFM initiates discussions on developing an alternative dispute resolution mechanism in the financial sector
In particular, the National Commission for Financial Markets, with the support of the USAID Moldova Institutional and Structural Reforms (MISRA) program, initiated discussions on developing an alternative dispute resolution mechanism between consumers and financial service providers that offers faster solutions, being a simpler and less expensive procedure for the parties than lawsuits. According to the NCFM, this initiative is in line with the new provisions of the Consumer Protection Law, which transpose European directives requiring the creation of alternative dispute resolution mechanisms in all sectors of the economy to resolve disputes between consumers and professionals outside of court. According to EU best practices, an alternative dispute resolution body must be fair, impartial, independent and transparent. Typically, in EU countries, the duration of dispute resolution through these mechanisms is reduced to a period not exceeding 90 days, compared to the months or years required to obtain a final decision in the courts. The discussions initiated by the NCFM are aimed at studying the opinions of stakeholders on the creation of an out-of-court dispute resolution solution for clients of financial services providers that would be effective, transparent and useful for both clients and financial services providers. The Chairman of the NCFM Dumitru Budianschi noted that the introduction of an alternative dispute resolution system will provide consumers with a shorter path to protect their rights, and financial services providers will receive an effective method for resolving disputes. In addition, the creation of an alternative dispute resolution mechanism will reduce the pressure on the judicial system. Thus, its effectiveness will be increased. “We have a long way to go, and this event is only the first step. A number of other discussions on various aspects will definitely follow. We invite you to take an active part in the process of creating alternative dispute resolution mechanisms for the financial sector. Only through dialogue and cooperation can we find the best solution in the interests of consumers and suppliers,” said Dumitru Budianschi. Cristina Bolun, Head of the Consumer Protection and Market Surveillance Department of the Ministry of Economic Development and Digitalization, emphasized that aligning with European standards in the field of consumer protection is a priority for the agency. According to her, the transposition of Directive 2013/11/EU of the European Parliament and of the Council on alternative dispute resolution is an important step in this regard. "By creating an out-of-court dispute resolution mechanism, we offer consumers a faster alternative to the court. We need a transparent, impartial and independent system that inspires confidence and contributes to a fairer financial market," she said. Cristian Onica, Financial Specialist of the USAID Institutional and Structural Reforms in Moldova project, clarified that the financial system in Moldova currently still faces a lack of consumer confidence caused by the image crisis of 2014-2015. According to him, in a recent survey, only 35% of respondents expressed confidence in financial institutions. "While efforts have been made to improve the situation, consumers still have no effective way to resolve disputes with financial service providers other than through the courts. International experience suggests that an alternative dispute resolution mechanism for the financial sector would improve efficiency and accessibility and help build trust in the market, but it is important that all stakeholders are united and aware of its benefits," he said. // 30.10.2024 – InfoMarket.
