Central Bank of the UAE issues new Consumer Protection Regulation

Central Bank of the UAE issues new Consumer Protection Regulation

ABU DHABI - The Central Bank of the UAE (CBUAE) has issued a Consumer Protection Regulation, the foundation of its new Financial Consumer Protection Regulatory Framework (FCPRF) and aims to ensure the fair treatment and protection of consumers.The new Regulation is supported by Decretal Federal Law No. 14 of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, which gave CBUAE an expanded mandate to establish regulations and detailed standards for the protection of customers of licensed financial institutions.The Principles-Based Regulation sets out key objectives to ensure protection of consumers' interest in their use of any financial product, service and relationship with Licenced Financial Institutions (LFIs).The Regulation provides a broad spectrum of appropriate behaviour and conduct expected of LFIs. The Principles cover areas as disclosure and transparency, institutional oversight, market conduct, business conduct and protection of consumer data and privacy.Moreover, the principles set responsibilities for responsible financing practices, complaint management and dispute resolutions, consumer education and awareness and financial inclusion and Shariah compliance for financial services.The regulatory principles are supported by detailed Standards, which will ensure LFIs' consistent application of these Principles and act with integrity and fairness in the treatment of financial consumers.Abdulhamid M. Saeed Alahmadi,