Competitive and Level Playing Field

1. 4.2.1.1Licensed Financial Institutions must not collude to limit competition in any manner including the fixing of prices, fees, or limiting contract terms or financial product features which are not in the best interest of the Consumers. This provision does not include any Fee, tariff or premium/takaful contribution rates or policy/takaful certificate terms that have been approved by the Central Bank or any other lawful authority.
2. 4.2.1.2Collusion that results in detriment to Consumers must not be undertaken including actions such as:
   1. a.Agreements between Licensed Financial Institutions to restrict the rate of interest/profit offered on Deposit Products for Consumers;
   2. b.Setting lending/financing rates;
   3. c.Setting currency and foreign exchange Fees, spreads and rates; and
   4. d.Coordinated efforts among Licensed Financial Institutions to charge maximum allowable Fees regardless of differences in actual costs between Licensed Financial Institutions.

Promoting Consumer Mobility in the Marketplace

1. 4.2.1.3This Section must be read in conjunction with the Consumer Mobility Section of Article 5: Business Conduct.
2. 4.2.1.4Licensed Financial Institutions must not have policies, procedures, requirements, Fees or any other barrier that unfairly limits or delays Consumers in their ability to transfer their financial activities to another Licensed Financial Institution or other financial service provider of their choice.
3. 4.2.1.5Consumers must be permitted to close or switch accounts (current and saving account) without Fees any time after 6 months of opening the account with the Licensed Financial Institution.
4. 4.2.1.6Licensed Financial Institutions must facilitate the transfer of the Consumer’s Product and/or Services to another Licensed Financial Institution or other financial service provider by providing the necessary information, letters, certificates, etc. within the specified time frames in these Standards or as may be prescribed by the Central Bank.

Intervention by Central Bank

1. 4.2.1.7The Central Bank supports a fair and competitive marketplace but may intervene where abuse, unfairness, collusion and/or imbalance occurs. In accordance with the Decretal Law, intervention may include:
   1. a.Setting limits on unfair Fees including Fees for early Financial Product and/or Service terminations;
   2. b.Limitations on bundling of Financial Products and/or Services;
   3. c.Limitations on interest/profit rates;
   4. d.Limitations on specific terms and/or conditions in Consumer contracts;
   5. e.Limitations on Advertising;
   6. f.Limitations on policies and practices by Licensed Financial Institutions which have the impact of unfairly limiting Consumers’ ability to easily switch or close accounts in a reasonable time; and
   7. g.Other matters the Central Bank may determine necessary to promote fair competition and uphold its Regulatory Principles and Standards and the protection of Consumers.