Behavioral Supervision in the Financial Market

The paper is devoted to the study of issues related to the implementation of behavioral supervision in the financial market. It is determined that the issues of legal regulation of the protection of the rights and legitimate interests of consumers of financial services in general and behavioral supervision in particular, financial market regulators began to pay increased attention after the global financial crisis of 2008. In its most general form, behavioral supervision is the supervision of how financial institutions interact with consumers. At the same time, behavioral supervision is associated not only with the identification and suppression of violations of current laws and bylaws, but also with countering unfair practices of financial organizations. It is important to understand that behavioral supervision is a tool that ensures compliance with a wide range of social norms, including legal and (partly) moral (ethical) norms.

It is established that within the framework of the model of a single megaregulator of the financial market, the effectiveness of behavioral supervision is provided by: a) the allocation of a structural unit responsible for protecting the rights and legitimate interests of consumers of financial services; b) the adoption of internal rules for resolving conflicts of interest between the structural units of the regulator responsible for the implementation of various types of supervision in the financial market; c) establishing of an out-of-court body for the protection of consumers of financial services; d) adoption of basic standards for the protection of the rights of consumers of financial services within the framework of self-regulating organizations in the financial market and monitoring of SRO members compliance with these standards.

It is determined that behavioral supervision contributes to increasing the availability of financial services, ensuring fair competition between financial organizations, strengthening consumer confidence in financial service providers, improving, developing and ensuring the stability of the financial market.

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