INSTITUTIONAL INNOVATIONS IN FINANCIAL MARKET REGULATION IN UKRAINE IN THE CONTEXT OF IMPROVING CONSUMER PROTECTION OF FINANCIAL SERVICES CONSUMERS

The main problems faced by financial institutions and users of financial services both in terms of mutual responsibility and protection of their own interests in the financial market are considered in the article. The current state of protection of the rights and freedoms of users of financial services is researched. Such main problems of financial institutions and their users are identified: lack of trust, low public awareness of financial products and insufficient level of financial inclusion. On the authors' point of view, financial inclusion is the equal access of all segments of the population to financial services and products at an affordable price. The main violations of financial institutions have been identified, in particular: by banks, by insurance companies and by pawnshops against their consumers, which are recorded by current regulators. The role of the mega-regulator in the financial market, its advantages and disadvantages are investigated. Prospects of reforms in the field of regulation and control of financial services, the effectiveness of prudential supervision are analyzed. The positive aspects and shortcomings of the implementation of the Law on «Split» are considered. It will come into force and will require feedback from both financial institutions and consumers of financial services on its effectiveness and the need for changes soon. The need to create an additional mediator in the financial services market is substantiated. This applies to the introduction of the institution of financial ombudsman despite the temporary withdrawal of the Bill on the establishment of a financial ombudsman in Ukraine. A new digitalized form of this Institute for the Protection of Consumers of Financial Services has been proposed. It should ensure a high level of financial inclusion, equal access for all segments of the population to the financial ombudsman's advisory services, effective prevention and settlement of financial disputes, and increase the level of financial literacy of the population.