OREANDA-NEWS. December 17, 2010. The Government of the Russian Federation adopted No.968 Decree (further on referred to as the Decree) introducing amendments to the General Exceptions regarding the agreements between credit and insurance organizations, approved by No.386 Decree of the Government of the Russian Federation of 30th April 2009, reported the press-centre of FAS Russia.

When the Decree comes into force, the General Exceptions will be applicable to cooperation between banks and insurers under the mortgage programmes.

The Decree contains provisions creating conditions for development of competition in the markets of banking and insurance services.

To prevent banks delaying verification of the documents that insurance companies must present to enable the verification, the Decree requires banks to have a “closed” list of information and documents, and determines the verification period (no longer than sixty working days). It also limits the period for the banks to inform insurance companies about conformity to the bank requirements (no longer than ten working days after the decision is made).

At the same time, the Decree adds to the list of unacceptable agreement conditions. It is now prohibited to obligate insurers to put monetary funds on deposits or securities of credit organizations, and maintain a particular account balance and cash turnover on current accounts with the credit organization.