The Financial Client Defense Authority created by the Government it will not be effective to fulfill its objective of protecting users of financial institutions, according to an article by Benito Arruñana, a professor at Pompeu Fabra University, published by the Foundation for Applied Economics Studies (Fedea).
Among the main defects of the new figure, the author highlights that it enhances the Administrative route for conflict resolution and centralization in a single body of the three claims services that exist dependent on the Bank of Spain, the National Securities Market Commission and the General Directorate of Insurance and Pension Funds.
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It questions therationality” of this administrative body and recognizes that it is “illusory” that it is intended to solve the problems of the public sector by creating new bodies that reproduce the organizational structure of the already existing bodies, “based on a civil servant bureaucracy, without trying to reform the latter”.
To deal with this problem, he recommends intensify competition in the affected markets, because it provides the “most efficient solution”, by preventing many conflicts from arising, especially “if ordinary justice deploys all its preventive potential”.
Arruñana considers “debatable” the organizational design of the Authority, since it chooses to centralize the regulation of conduct, but maintains prudential supervision in three agencies, so that “it may end up suffering from the vices of capture, lack of coordination and diseconomies of scale typical of both models” .
A more effective measure, in his opinion, would be for the prudential supervision of solvency was entrusted to the Bank of Spain and the CNMV will be in charge of everything related to the conduct of financial entities.
In addition, it considers that the success of these systems depends on ensuring a effective independence of the regulator and criticizes that the bill does not specify essential aspects related to the appointment of senior positions, elected councilors and management positions. misses one too increased parliamentary oversight.
Another novelty included in the bill and questioned by Fedea is that the resolutions will be binding for entities with claims of less than 20,000 euros or of an indeterminate amount.
Despite this, the parties may appeal small claims in the contentious-administrative jurisdiction and “this possibility of judicial appeal compromises the objective of efficiency and speed”, argues the professor.
Do you think it would be more effective self-regulation system in which the member entities commit to comply with the resolutions. It also poses the risk of the emergence contradictions between civil and contentious-administrative jurisprudence.
The Government created, in November of last year, the Authority for the Defense of Financial Clients, whose bill is currently undergoing parliamentary proceedings.
Your goal is resolve claims against breaches of the rules of conduct, good practices and financial uses in order to restore or repair the rights of customers who have been violated in the provision of a service or in the contracting of a financial product”.
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