MOSCOW, March 22 - RAPSI. The president has ordered the government and the Central Bank to compile a proposal by September 1 on legislative amendments to establish the Financial Stability Council and the position of a financial ombudsman, the Kremlin reports on Thursday.

Additionally, the president expects proposals on encouraging non-cash payments and changes in the pension fund investment strategies.

The financial ombudsman is an authority for out-of-court resolution of disputes arising between financial institutions and their private clients.

Russia has already had a financial ombudsman who worked on pro bono basis - Pavel Medvedev. He was appointed as an advisor to the Central bank chairman in February.

Association of Russian Banks President Garegin Tosunyan acts in this capacity today.

Under the applicable rules, only an individual may turn to the ombudsman for assistance. Disputes are considered free of charge. A request for the ombudsman's assistance does not prevent the party from going to court. However, while the ombudsman is handling a case. the applicant undertakes not to refer it to the court. The ombudsman and his secretariat shall explain to the applicant his rights and obligations associated with the claims and advise him on the dispute resolution form.

Before appealing to the ombudsman, the client should file a complaint with the bank, which is obliged to respond effectively within 30 days.