The Central Bank of Russia is actively developing legislative proposals that would require banks to implement audio and video recording of conversations and transactions tied to the sale of complex financial products. This initiative was reported by TASS, citing a letter from the Central Bank in response to a request from State Duma deputy Evgeniy Marchenko. The move signals a clear intent to create a verifiable trace of interactions between bank personnel and clients during the marketing and completion of sophisticated financial instruments. According to the agency, the purpose is to strengthen accountability and provide a concrete evidence base in situations where a product may have been misrepresented or mispriced, offering a safeguard for retail investors and a tool for regulators. It also underscores the desire to align consumer protection with more transparent operational practices across the banking sector.
Back in November, Marchenko addressed a formal letter to the head of the Central Bank of the Russian Federation, Elvira Nabiullina, requesting that banks be obliged to organize and archive audio and video records of communications between employees and customers when complex financial products are being sold. His argument focused on two practical outcomes: first, the ability for the regulator to review interactions and determine whether the correct product was presented for a given client profile, and second, a mechanism for law enforcement to access these records in cases of suspected fraud or improper conduct. The deputy stressed that such documentation would help ensure accuracy in the sales process and protect investors from recommendations that may not align with their financial goals or risk tolerance.
According to a reply from the National Bank, Marchenko’s proposal was acknowledged with a willingness to develop a corresponding legislative norm. The regulator stated that codifying this practice would enable the submission of recorded interactions to the Central Bank of Russia upon request, thereby enhancing oversight and compliance. It was noted that current laws do not compel credit institutions to audio and video record the process of interactions with consumers during contract signing, which leaves room for gaps in verification and accountability. The response framed the potential rule as a step toward harmonizing regulatory requirements with contemporary consumer protection standards while maintaining operational flexibility for banks.
In late November, Marchenko also proposed restricting the sale of complex financial products by Russian banks to individuals who do not hold a higher education degree in economics or related fields. He argued that customers lacking advanced economic training are more vulnerable to aggressive marketing and complex insurance products with investment components. The deputy pointed out that some banks promise high profits and full recovery of the invested amount should a contract be terminated early, which can mask hidden risks and lead to unprofitable outcomes for the buyer. This suggestion reflects a broader concern about ensuring that product recommendations align with a client’s knowledge and financial literacy, potentially reducing the likelihood of mis-selling and enhancing market integrity.
At the end of December, Deputy Governor of the Central Bank Alexey Zabotkin weighed in on the state of the base rate for the upcoming year. He did not dismiss the possibility of a rate cut but indicated that the Bank of Russia would likely need to keep interest rates elevated for a substantial period, given the prevailing macroeconomic assessment and inflation trajectory. This stance implies a cautious approach to monetary easing, aiming to preserve financial stability while monitoring evolving economic indicators. The statements highlighted a balancing act between stimulating growth and maintaining price discipline during a period of uncertainty and global volatility.
Previously, the Bank of Russia had signaled a focus on strengthening international reserves, a move widely interpreted as part of a strategy to bolster financial resilience amid external pressures and shifts in global capital flows. This context helps explain why regulatory authorities are considering additional layers of oversight and consumer protection measures, as the regulatory environment seeks to shield retail investors while ensuring that Russian financial markets remain robust, transparent, and capable of withstanding external shocks.