The Central Bank of UAE has issued the consumer protection guideline for financial services under the Financial Consumer Protection Regulatory Framework (FCPRF) to ensure the fairness and protection of financial services consumers. The new guideline aims to make the system tighter and more efficient towards the deliverable financial services.
Nowadays, financial sectors in Dubai are growing rapidly, as a result of which these sectors are adding more complexity and procedural difficulties. So in order to make it easier and protect the interest of consumers while dealing with the financial sectors, the central bank of UAE issued the consumer protection regulation for financial services.
As per the governor Abdulhamid M. Saeed Alahmadi, “The issuance of a consumer protection regulation comes among the revelation of the financial organization to push transparency and fairness once LFIs affect their customers. It’ll improve the aggressiveness, integrity, and stability of the banking and monetary sector,”
The regulation sets out key objectives to make sure protection of consumers’ interest in their use of any money product, service, and relationship with ‘Licensed money Institutions’ (LFIs). It’s supported by Decretal Federal Law No. 14 of 2018 that gave CBUAE Associate in nursing an enlarged mandate to determine rules for the protection of consumers of commissioned money establishments.
Guidelines for Licensed Financial Institutions (LFIs)
The regulation provides a good variety of acceptable behaviors for Licenced Financial Institutions (LFIs). It covers revelation and transparency, institutional oversight, market conduct, business conduct, client information protection, and privacy. In addition, they place responsibilities on accountable funding practices, criticism management and dispute resolution, client education and awareness-raising, and monetary inclusion and compliance with monetary services law.
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