The objectives of the diagnostic reviewof consumer protection and financial literacy for Armeniaare: (i) to assess the existing financial consumerprotection framework, by reviewing laws, regulations andpractices in Armenia compared to international goodpractices; and (ii) to provide recommendations on ways toimprove consumer protection and financial literacy inArmenia. The review provides a detailed assessment of theinstitutional, legal and regulatory framework in fourfinancial segments, namely banking, non-bank creditinstitutions, securities, and insurance. Many key steps havealready been taken in financial consumer protection,especially at the regulatory and institutional levels.Regarding the institutional framework, adequate resourcesneed to be allocated to the consumer protection team andmodern supervisory tools should be made available. Consumerorganizations should be strengthened and motivated to assistthe Central Bank of Armenia (CBA) in market monitoring. Interms of consumer disclosure, the CBA should issueregulations that require financial institutions to provideclear, understandable, timely, comparable and standardizedinformation to consumers. In the area of regulation ofbusiness practices, the CBA should require that sales agentsare well trained and should test them regularly. Allfinancial institutions should regularly analyze thecomplaints received and the analysis should be provided tothe CBA. The Steering Committee for the National Strategy ofFinancial Education should become the key body to managefinancial education in Armenia.
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