IMPLEMENTATION OF FOREIGN EXPERIENCE OF PRE-TRIAL DISPUTE SETTLEMENT AT FINANCIAL SERVICES MARKETS IN UKRAINE

Abstract

Urgency of the research. The financial crisis that engulfed markets of non-banking financial services in 2008-2009, have indicated the imperfection of protection the consumers' rights of these services. Given that Ukraine has chosen the European integration progress for its further development, there is an urgent need to strengthen the protection of the consumers' rights in the sphere of non-banking financial services in Ukraine. Target setting. Taking into account the European Commission Recommendation 98/257/EK, it is reasonable to study the best international practices of consumers' protection in the field of non-banking financial services to implement alternative mechanisms of resolving disputes between consumers and providers of financial services in Ukraine. Actual scientific researches and issues analysis. Issues concerning improvement of state regulation of financial services markets in Ukraine are investigated in scientific works of A. Baranovsky, N. Vnukovo, A. Lupus, A. Gamankova, V. Goncharenko, A. Zaletova, V. Levchenko, etc. International experience of the state regulation in the developed countries are mentioned in the works of C. Goodhart, S. Ingves, Ch. Lentner, Dy. Matolcsy, E. Nier, D. Tsomokos etc. Uninvestigated parts of general matters defining. The research works of the scientists listed above does not allow concluding on the completeness of their valuation of such a mechanism for the implementation of consumer protection as a financial arbitration. The research objective. The article aims to reveal the positive experience of functioning the Financial Arbitration Board in Hungary as an alternative form of fulfillment the rights of consumers to protect their legitimate interests and to rationalize the possibility of its implementation in the modern realities of Ukraine. The statement of basic materials. The article substantiates the feasibility of the implementation of the Hungarian experience in a modern system of consumer protection in Ukraine. The authors have revealed features of functioning of the Financial Arbitration Board of Hungary, statistical analysis of which allows making a conclusion about its effectiveness in resolving disputes between consumers and financial service providers. Conclusions. The adoption of the Hungarian experience with financial arbitration in the modern realities of Ukraine will contribute to the integration of the state into the European economic area through implementation of the Recommendation of European Commission 98/257/EK and to the strengthening of public confidence in financial markets.