2.1 Disclosure

2.1.1 General Provisions for all Financial Products and/or Services

General Requirements

2.1.1.1 Licensed Financial Institutions must apply the Disclosure and Transparency requirements to all Financial Products and/or Services provided through all communication channels of service including branches, telephone banking, mobile applications, internet banking and all other channels.

2.1.1.2 All disclosure information must be available in Arabic and English. Refer to Clause 2.3.1.3.

2.1.1.3 Disclosure information must be easily available in all branches and all other communication and distribution channels.

2.1.1.4 Information must be available in a format accessible and in a manner suitable for People of Determination or a representative nominated by such a Consumer. The Licensed Financial Institutions must assess and provide the information in the format best suitable for the Consumer.

2.1.1.5 Information must be in clear and plain language and presented using user-friendly sized font, color and spacing. It should incorporate appropriate visual graphics and provide examples using text boxes and tables to help educate Consumers about key financial concepts.

2.1.1.6 Licensed Financial Institutions must use official documents for all transactions when dealing with its Consumers. In particular, the name of the Licensed Financial Institution and a regulatory disclosure statement stating that the Licensed Financial Institution is licensed by the Central Bank must be accurately displayed in the documents. Documents must not use any other term that might indicate any out of scope unlicensed activities.

2.1.1.7 Licensed Financial Institutions must clearly and prominently display the full legal/trade name of the Licensed Financial Institution on the main signage of the licensed premises, websites, letterheads, business cards, transaction receipts and all other marketing/branding materials.

2.1.1.8 When Licensed Financial Institutions provide Advice of any kind, they must not make statements that are untrue, misleading or omit information that is necessary to understand the nature, costs, risks, terms and conditions of the Financial Products and/or Services.

2.1.1.9 When Specific Advice is provided to a Consumer by the Licensed Financial Institution, the Specific Advice must be documented. If a Financial Product and/or Service is sold, a copy of the Specific Advice must be provided to the Consumer.

2.1.1.10 Licensed Financial Institutions must continuously monitor and, improve the effectiveness of its disclosures with techniques such as Complaint analysis, Consumer satisfaction surveys, mystery shopping and Call- backs to Consumers.

2.1.1.11 Licensed Financial Institutions must inform Consumers about account services that are included and the account services that are optional and if there is an additional fee.

2.1.1.12 Licensed Financial Institutions must inform Consumers about the terms and conditions related to termination, expiry date, unclaimed balances and Fees for all payment instruments that it offers.

2.1.1.13 Where Licensed Financial Institutions are offering any form of rebate, gift or other incentive on their Financial Products and/or Services, Licensed Financial Institutions must clearly disclose separately the terms and conditions associated with that rebate, gift or incentive and highlight any conditions and/or restrictions. Easy and direct access must be provided to obtain the specific terms and conditions related to the rebate, gift or incentive.

2.1.1.14 Licensed Financial Institutions must include statements in terms and conditions, financial product disclosure documents, Key Facts Statements and application forms that will warn Consumers of consequences in the event of a Consumer’s failure to meet the Licensed Financial Institution’s terms and conditions before and during the Consumer’s relationships with Licensed Financial Institutions.

2.1.1.15 Licensed Financial Institutions must ensure that all warning statements required by these Standards are prominently and clearly displayed in the disclosure document, i.e. they must be in a highlight box and in bold type. Warning statements, as specified in this Standard, are to be provided during all communications with the Consumer regarding a product or service. Additional warning statements must be provided regarding potential negative financial implication on the Consumer.

2.1.1.16 Information on Base Lending / base financing rates or other reference rates including the effective dates of these rates must be made available on the Licensed Financial Institution’s website and mobile application and be displayed at the Licensed Financial Institution’s branch. The posting of the rates must be updated on a regular basis with each change in rates.

2.1.1.17 Where a contract with a Consumer has a provision for annual automatic renewal of the contract, the Licensed Financial Institution must send a written notice to the Consumer at least 30 calendar days in advance from the date of renewal. The notice must also inform the Consumer how and when the automatic renewal can be cancelled.

2.1.1.18 Licensed Financial Institution’s schedule for Fees, including Third Party Fees, must be clearly on display in all branches and on the Licensed Financial Institution’s website.

2.1.1.19 Licensed Financial Institutions must provide Consumers with a Key Facts Statement prior to providing a Financial Product and/or Service or on the Consumer’s request.

2.1.1.20 The Key Facts Statement should be the first document provided to the Consumer during the sales process and must be individually and clearly presented. Prior to signing the contract, the Consumer must sign to acknowledge receipt of a Key Facts Statement for the product or service being purchased.

2.1.1.21 Key Facts Statements specific for a Financial Product and/or Service must be offered to Consumers for any Financial Product and/or Service that is being distributed, advertised, marketed, sold or otherwise provided by Licensed Financial Institutions (including insurance/takaful and structured products).

2.1.1.22 The Key Facts Statement must:

a. Be a stand-alone document;

b. Be concise (preferably within 2 pages) and use plain language which is easy to understand;

c. Provide an accurate description of each Financial Product and/or Service;

d. Specify whether the Licensed Financial Institution reserves the right to change terms and conditions at a later date;

e. Specify the notice period to be provided before implementing any future and Permissible change in terms and conditions;

f. Specify, as applicable, related interest/profit rates, Fees, key terms & conditions, key obligations, limitations and key requirements of the financial product in a legible font size;

g. Use “Warning” boxes to highlight key risks related to the purchase of Financial Products and/or Services. This should include disclosure of any assumptions made that may affect the performance of the Financial Product and/or Service, any risks that would create the potential for monetary losses or the lack of any potential gains/profit and any limitations on potential monetary gains; and

h. For loan/financing products, Licensed Financial Institutions must disclose to Consumers the expected Annual interest/profit rate, any possible fees on the Credit Product and the standard formula of computing interest/profit amount as may be prescribed by the Central Bank. In addition, Licensed Financial Institutions must disclose in a prominent manner in the Key Facts Statement whether the product has a fixed, variable or a combination of fixed and variable interest/profit rate basis.

Section 2.1.2, 2.1.3, 2.1.4 and 2.1.5 of this Article apply to Key Facts Statements.

2.1.1.23 Licensed Financial Institutions must provide appropriate information to the potential and existing Consumer at all stages of the relationship. All information, disclosures and other communications by Licensed Financial Institutions to Consumers must be accurate and comprehensive at each of the following 3 stages of the Consumer relationship:

a. Prior to providing a Financial Product and/or Service to a Consumer: The information gathering stage before the point of sale or at the application stage. Disclosure should be made so that the Consumer has an understanding of the financial product’s features, pricing, benefits, risks, Fees and Consumer’s rights and obligations before making a decision;

b. At point of entering the contract: The stage in which the Consumer is being provided with an offer and is at the stage of accepting the Financial Product and/or Service offer made by the Licensed Financial Institution; and

c. During the term of the contract: The stage after the acceptance of the contract and until the end of the contract.

2.1.1.24 Disclosures relating to the privacy and use of personal information must be made to the Consumer in accordance with Article 6: Protection of Consumer Data and Assets of these Standards.

Prior to Providing a Financial Product and/or Service

2.1.1.25 Licensed Financial Institutions must provide inquiring Consumers with a copy of the terms and conditions of the Financial Product and/or Service that pertains to the inquiry. Licensed Financial Institutions must answer in Writing, any queries of Consumers relating to terms and conditions.

At Point of Entering the Contract

2.1.1.26 In case of rejection of any Consumer’s application for a Financial Product and/or Service by the Licensed Financial Institution, the Licensed Financial Institution must disclose the reason for rejection to the applicant except where the reason of rejection is related to Financial Crime Compliance risks or as may be prohibited by law.

2.1.1.27 Licensed Financial Institutions must provide Consumers with a copy of the contract to read and with appropriate time to review before signing it.

2.1.1.28 Licensed Financial Institutions must provide Consumers with all final documents involved in a transaction including any document that contains the signature or indication of approval of the Consumer. This applies to all documents including but not limited to the offer, contract, terms and conditions, security and guarantee. Documents must be provided free of charge regardless of how they are provided.

2.1.1.29 Where there is a guarantor or more than one Person signing a contract for a Financial Product and/or Service, each Person must be given copies of the documents free of charge.

2.1.1.30 Consumers must be offered a choice of which document format they wish to receive the initial copies of the documents.

2.1.1.31 Where a Cooling-off Period is required to be provided by these Standards or prescribed by the Central Bank, Consumers must be informed of their right to a Cooling-off¬Period at time of signing the contract for the purchase of a Financial Product or Service. Where a longer Cooling-off period is specified by way of other legal or regulatory requirements, the longer period must be applied.

2.1.1.32 Consumers may waive the Central Bank’s required Cooling-off Period of complete 5 business days by signing a written waiver provided by the Licensed Financial Institution containing a warning about agreeing to an immediate commitment.

2.1.1.33 The underlying Shari’ah contracts for Shari’ah-compliant financial products should include a clause granting the Consumer Cooling-off option for a period of 5 complete business days in accordance with the provisions contained in the Civil Transactions Law and the relevant Shari’ah standards.

2.1.1.34 Where a Licensed Financial Institution is required to carry out an assessment of a Consumer regarding the suitability, affordability and/or appropriateness of a Financial Product and/or Service, a copy of the summary of the results of the assessment must be provided to the Consumer without charge except as may be prohibited by law.

2.1.1.35 Licensed Financial Institutions must disclose in a prominent manner to a Consumer whether the interest/profit rate charged on a Credit Product is variable or fixed or a combination of the variable and fixed rate, where applicable, and the method of calculation of the rate.

2.1.1.36 Where a Base Lending / base financing Rate forms part of the final interest/profit rate offered to a Consumer, Licensed Financial Institutions must disclose to the Consumer the separate components of the rate i.e. Base Lending / base financing Rate + X basis points. Licensed Financial Institutions must explain and provide a clear example of the concept of the Base Lending / base financing Rate and the potential frequency at which the rate will be revised as well as where the rates will be publicly posted.

2.1.1.37 Licensed Financial Institutions must disclose all Fees that are applicable to Consumers and provide Consumers with a copy of the Fees specific to the Financial Product and/or Service, at the time of signing a contract or upon a Consumer’s request at any time. Licensed Financial Institutions must explain the amount and calculation methodology of all applicable Fees. The Licensed Financial Institution must disclose to the Consumer that Third Party Fees may apply and disclose the amount. If the amount is not known, the Licensed Financial Institution should endeavor to provide an estimate or range.

2.1.1.38 Licensed Financial Institutions must disclose whether the Fees to be charged to the Consumer are one time or recurring. In cases where Fees are recurring, Licensed Financial Institutions must disclose the frequency of recurrence and the time period over which the amount will continue to be charged to the Consumer.

2.1.1.39 Licensed Financial Institutions must advise Consumers on what they can do to protect their accounts from fraud and misuse and must ensure that Consumers are fully aware of the consequences of granting an unauthorized Person and/or Third Parties access to their bank accounts and any other Financial Product and/or Service. In particular, Licensed Financial Institutions must inform Consumers of the consequences of sharing their personal information, personal identification number (PIN) and other security information.

2.1.1.40 Licensed Financial Institutions must inform Consumers of the process and contact method to follow in reporting a lost or a stolen card and in case of Unauthorized Transactions on their accounts.

2.1.1.41 Licensed Financial Institutions must inform Consumers that they are responsible for:

a. Keeping their banking correspondence secure for future reference;

b. Verifying the accuracy of any account / transaction statements sent to them; and

c. Confirming to the Licensed Financial Institution, their contact information and identification when changes occur or as requested. Requests for subsequent confirmation of information from a Licensed Financial Institution must be executed in a secure manner.

2.1.1.42 Islamic Financial Institutions (IFIs) which offer Shari’ah compliant products must disclose the Shari’ah basis of the Financial Product and/or Service and the approval from the Internal Shari’ah Supervision Committee. The Shari’ah basis should also be included in the Key Facts Statement.

During the Term of the Contract

2.1.1.43 During the term of the contract, Licensed Financial Institutions must provide Consumers with a regular detailed statement including all transactions that occurred in an account for a Financial Product and/or Service:

a. The statement must include key information that fully informs the Consumer as to the amount, type and status of the transactions in the account(s); and

b. No Fees can be charged for original statements provided to the Consumer.

Sections 2.1.2, 2.1.3, 2.1.4 and 2.1.5 of this Article contain further details on statements to be shared during the term of the contract.

2.1.1.44 Licensed Financial Institutions must inform Consumers of all transactions on their accounts as they occur, by sending a free SMS to a mobile phone or, if requested, to the Consumer’s email address. The details of such transactions must be available on the Consumer’s mobile or internet banking platforms.

2.1.1.45 In case of digital transactions, the Licensed Financial Institution must communicate specific information to the Consumer upon receiving transaction requests and upon execution of the transaction as prescribed by the Central Bank.

2.1.1.46 Licensed Financial Institution cannot change terms and conditions of a contract unless this has been clearly, separately, and prominently disclosed and agreed by way of expressed consent by the Consumer.

2.1.1.47 If the Licensed Financial Institution decides to make Permissible changes to the contract, the Licensed Financial Institution must give Consumers a minimum of 60 calendar days’ notice before changes to the terms and conditions of a Financial Product and/or Service, including changes to Fees, can take effect, with exception provided by Clause 2.1.1.36 and 2.1.3.21 regarding lending Rates.

2.1.1.48 In the notification to Consumers of Permissible changes to the terms and conditions of a contract, the Licensed Financial Institutions must provide a plain language summary of the key changes along with a copy of the revised Terms and Conditions.

2.1.1.49 Where there is a Permissible change in the methodology to calculate rates and Fees, the Licensed Financial Institution must disclose the revised methodology to the Consumer by way of written notice that must be provided 60 calendar days in advance of the change taking effect.

2.1.1.50 When a Consumer or the Licensed Financial Institution transfers or closes a Consumer’s account except for credit cards and investment accounts, the Licensed Financial Institution must issue to the Consumer a final closing account statement, identified as such, within 7 complete business days of the Consumer requesting the transfer or closure of the account.

2.1.1.51 When intending to close, merge or move a branch of a Licensed Financial Institution, the Licensed Financial Institution must:

a. Notify the Central Bank immediately in the manner as may be prescribed by the Central Bank;

b. Provide at least 60 calendar days’ written notice to affected Consumers to enable them to make alternative arrangements;

c. Post a notice that is clearly visible to Consumers in the closing branch and stating the date of closing of the branch;

d. Disclose how continuity of service will be provided to the Consumer; and

e. Disclose this information on their website.

2.1.2 General Provisions for Deposit Products

General Requirements

2.1.2.1 Licensed Financial Institutions that offer Deposit Products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Deposit Product and/or Service

2.1.2.2 Where a Licensed Financial Institutions offers low cost savings account and / or current account, they must be transparent and inform the Consumer of the availability of a low cost savings account and / or current account and disclose the key features of such accounts.

2.1.2.3 Licensed Financial Institutions must disclose if the account type requires an initial deposit to open the account and a minimum balance to be maintained in that type of account. The disclosure must warn the Consumer of the consequence of not maintaining a minimum (daily / monthly) balance in the account including the imposition of any Fee.

2.1.2.4 Licensed Financial Institutions must disclose the expected Annual Interest/Profit Rate that will be paid on the deposit, the frequency of interest/profit payments and any circumstances that might affect the amount or frequency of the interest/profit payments.

2.1.2.5 Licensed Financial Institutions must disclose all Fees on both standard and additional/optional services applicable to the deposit account to Consumers.

At Point of Entering the Contract

2.1.2.6 Licensed Financial Institutions must inform Consumers of the implication of redeeming a fixed deposit before maturity. Licensed Financial Institutions must disclose any penalty applied to the interest/profit rate or Permissible Fees applicable to early closure of deposit account within a specified time frame.

2.1.2.7 For accounts with a cheque book facility, Licensed Financial Institutions must inform Consumers in Writing of:

a. Any limit on the number of cheques permitted in their cheque book; and

b. The repercussions of returned cheques including fees, closure of the current account and / or a negative report to the Credit Information Agency.

2.1.2.8 Licensed Financial Institutions must inform Consumers of the communications channel that Consumers can use to obtain periodic transaction account statements on their deposit accounts.

During the Term of the Contract

2.1.2.9 Licensed Financial Institutions must, at minimum on a monthly basis, provide the Consumer with a free transaction account statement (electronic or paper) which must include, where applicable:

a. Account Number/ID;

b. Name(s) on the Account;

c. The time period covered by the statement;

d. The opening balance;

e. Each deposit;

f. Each withdrawal;

g. Breakdown of any interest/profit credited;

h. Breakdown of all Fees by amount and type;

i. The end of statement period closing balance;

j. Term dates on fixed deposits;

k. Early redemption penalties;

l. Explanations of the interest/profit rate applied if fixed, or if variable, the annual rate on the account during the period covered by the statement; and

m. Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

2.1.2.10 Licensed Financial Institutions must inform Consumers of any Permissible changes in Annual Interest/Profit Rates on their deposit products. Refer to Clause 2.1.3.21.

2.1.2.11 If an account is to become dormant, free reminders must be sent to the Consumer informing them about the impending dormancy, as may be prescribed by the Central Bank.

2.1.2.12 Licensed Financial Institutions must inform Consumers of their decision to close a Consumer's account 60 calendar days in advance of the account being closed and provide in Writing, the reasons for closure. If the Licensed Financial Institution has reasonable grounds to believe there may be financial crime risks and potential fraud, Licensed Financial Institutions can immediately close or block an account without providing the advanced notice or reasons to the Consumer.

Disclosure Requirements for Shari’ah Deposit Products

2.1.2.13 IFIs which offer Shari’ah compliant Deposit Products must comply with the requirements in Section 2.1.2 of this Article as applicable, in addition to complying with the below requirements.

2.1.2.14 IFIs which offer Shari’ah compliant Deposit Products to Consumers must:

a. Explain briefly the Shari’ah concepts applicable to the Deposit Product, including the rights and obligations of the Consumer;

b. Disclose that funds are invested and managed in accordance with Shari’ah requirements;

c. Disclose the profit-sharing ratio, weights and profit distribution method by the Licensed Financial Institution for deposits under the mudarabah concept, including the frequency of profit payment. For Deposit Products with fixed tenor, the Licensed Financial Institution should disclose the historical profit rates to facilitate comparison by the Consumer; and

d. Disclose if a minimum deposit amount is required for the account to be eligible for profit sharing.

2.1.3 General Provisions for Credit / Financing Products

General Requirements

2.1.3.1 Licensed Financial Institutions that offer Credit Products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Credit Product and/or Service

2.1.3.2 Licensed Financial Institutions must provide Consumers with the expected Annual Percentage Rate that will be charged on the offered Credit Product to facilitate comparison between Credit Products and between institutions.

2.1.3.3 Licensed Financial Institutions must disclose whether security, a guarantor, co-signer or collateral is required for a Credit Product before the consumer signs the contract. Licensed Financial Institutions must fully disclose the purpose of these requirements and the conditions placed on the pledging of security and any other collateral including the Licensed Financial Institution’s rights to dispose of them and the manner in which they may be disposed.

At Point of Entering the Contract

2.1.3.4 Licensed Financial Institutions must disclose:

a. How the interest/profit on the Credit Product will be calculated (including the date from which interest/profit is incurred) and provide an example of the calculation to the Consumer; and

b. How the payments are allocated between outstanding balance and interest / profit as per the Reducing Balance Method.

2.1.3.5 Licensed Financial Institutions must disclose that they are not permitted to charge interest/profit on accrued interest/profit of any Credit Product granted to Consumers in accordance with Article (121), Clause 3 in Decretal Federal Law No. (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities.

2.1.3.6 For variable rate loans/financing, Licensed Financial Institutions must disclose to Consumers the potential impact of an increase in the Annual Interest/Profit Rate on the loan/financing. The disclosure must explain via an illustrative example:

a. The potential consequences of an increase to the rate on the loan/financing payment amounts;

b. The change in the allocation of the payment between interest/profit amount and a reduction in outstanding balance;

c. The impact on the tenor if any; and

d. The consequences of any increase in rates on the amount of a deferred payment or an accumulated balloon payment during or at the end of the loan/financing tenor.

2.1.3.7 Licensed Financial Institutions must disclose whether early settlement is possible and which Permissible Fees are payable if the Credit Product is terminated before the end of the tenor along with, how the Fees will be calculated and when they are payable.

2.1.3.8 The Key Facts Statement on a financing product must set out a detailed example relevant to the product with the calculation and cost of the applicable Early Settlement Fees where applicable.

2.1.3.9 When a Licensed Financial Institution decides to sell a Credit Product to a Consumer, the Licensed Financial Institution must issue a written offer that contains the approved loan/financing amount, all the terms and conditions and for financing with a tenor, the cumulative total of all repayment/payment amounts to be paid by the end of the tenor based on the initial interest / profit rate, and a separate amount that will total the expected amount of interest/profit that would be paid over the tenor.

2.1.3.10 Licensed Financial Institutions must inform Consumers that funds approved on a Credit Product, except for mortgages and credit cards, will be disbursed within 10 complete business days of signing the contract or within such other time frame that is agreed to and specified in the contract. Complying with the period of time for disbursement of funds is subject to the Consumer and / or third party providing the required and properly completed documents and meeting the agreed conditions. If it is not possible to release the funds within the time limit, the Licensed Financial Institution must advise the Consumer in Writing immediately as to the reason for the delay and the date by which the funds will be available. As a consequence of the delay caused by the Licensed Financial Institution, the Consumer retains the option to cancel the contract without cost or penalty before the funds are made available.

2.1.3.11 At the point of entering the contract, except for credit cards, Licensed Financial Institutions must provide Consumers with a complete repayment/payment schedule document including the following but as may be applicable:

a. The initial amount of the loan/financing;

b. The Annual Interest/Profit Rate including whether it is fixed or variable;

c. The expected tenor;

d. The date of the first installment;

e. The number of installments to be paid;

f. The frequency of repayment/payment;

g. The amount to be paid for each installment;

h. The allocation of each installment between the principal and interest/profit payments;

i. The decline in principal amount of the loan/financing with each payment; and

j. The total cost of the loan/financing in terms of the total interest/profit paid by the Consumer.

2.1.3.12 For Shari’ah compliant financing products:

a. Licensed Financial Institutions must inform a Consumer when late payment Fees/commitment for contribution towards charity will be imposed and the amount to be imposed. Licensed Financial Institutions must also disclose to Consumers the manner in which the late payment Fees/commitment for contribution towards charity will be calculated; and

b. Late payment Fees/commitment for contribution towards charity must be based on an administrative cost and must not include any remuneration to the Licensed Financial Institution that could be considered unlawful charging of interest/profit on accrued interest/profit.

2.1.3.13 Where Licensed Financial Institutions offer or market insurance/takaful products and/or services associated with the credit/financing product, Consumers must be informed in Writing that they have the choice to accept or reject the offer of insurance/takaful.

2.1.3.14 In addition to any other UAE regulator’s requirements regarding the sale and marketing of insurance/takaful, Licensed Financial Institutions must at a minimum:

a. Explain the nature, purpose, coverage and limitations of coverage;

b. Disclose its suitability for the Consumer;

c. Disclose termination conditions including any obligations related to future insurance/takaful payments/ premiums; and

d. Disclose the Fees (including associated commissions) paid with the sale of such an insurance/takaful product.

The Licensed Financial Institution must obtain the Consumer’s expressed consent for insurance/takaful independently of signing application forms or the contract for offering insurance/takaful. The appropriate Cooling- off Period will apply. This Section must be read in conjunction with the Section on Cooling-off Period of Article 5: Business Conduct of these Standards. Refer to Clause 2.1.1.31.

2.1.3.15 Where insurance/takaful coverage is a mandatory component of the Credit/Financing Product and/or Service, the Licensed Financial Institutions must disclose the purpose of the insurance/takaful. The Licensed Financial Institution must disclose the costs of the Licensed Financial Institution’s insurance/takaful product in Writing to the Consumer and inform the Consumer that the Consumer has the right to choose an insurance/takaful provider from minimum choice of 3 insurance/takaful providers approved by the Licensed Financial Institution. The Consumer should inform the Licensed Financial Institution of the choice of insurance/takaful provider within a reasonable period of time. If the Consumer does not inform Licensed Financial Institutions of the choice of a provider, the Licensed Financial Institution has the right to choose an insurance/takaful provider from the approved insurance/takaful providers presented to the Consumer.

The Licensed Financial Institution must also disclose to the Consumer if the insurance/takaful provider belongs to the same group of institutions as the Licensed Financial Institution.

2.1.3.16 If the Consumer decides to acquire insurance/takaful through the Licensed Financial Institution, the Consumer must be informed of any additional costs that may be incurred if the insurance/takaful costs are added to the loan/financing principal and thereby incurring the additional interest/profit costs.

2.1.3.17 When a Credit Product that is offered to a Consumer includes a balloon or deferred payment(s), or the option of a balloon or deferred payment, Licensed Financial Institutions must explain to the Consumer verbally and in Writing the concept of a balloon or deferred payment and the risks associated with the credit/financing product. Specifically before entering the contract, Licensed Financial Institutions must provide the Consumer with an explanation of the repayment/payment schedule and clearly outline the scheduling and amount of the balloon or deferred payments. The Consumer must acknowledge in Writing that this has been fully disclosed to him/her by the Licensed Financial Institution.

2.1.3.18 Licensed Financial Institutions must disclose to Consumers that a Credit Product cannot exceed its authorized limit or be allowed to draw on an overdraft facility and that any transaction resulting in the limit being exceeded may be rejected and may incur Fees.

During the Term of the Contract

2.1.3.19 Licensed Financial Institutions must, at minimum, on a quarterly basis for credit/financing facilities and at minimum on a monthly basis for credit / payment instruments, provide Consumers with a free statement of transactions (electronic or paper) which must include:

a. Account Number/ID or Card Number/ID;

b. Name(s) of Consumer(s);

c. The date of the statement and the period covered by the statement;

d. Next payment due date;

e. The opening balance;

f. Each transaction and the date of the transaction;

g. The allocation of each payment between the outstanding balance and interest/profit payments (for loan/financing facilities);

h. All interest/profit charged (for credit cards, Annual Interest/Profit Rate charged must be disclosed separately);

i. All Fees transactions identified and totaled separately;

j. Foreign exchange rate applied to each foreign exchange transaction (applicable to credit / payment card statements);

k. The outstanding balance due;

l. In case of balloon payments, the statement must clearly identify the balloon payment and future date due;

m. In case of deferred payments, the statement must clearly identify the deferred amount and future date due;

n. Details of the Annual Interest/Profit Rate applied during the period covered by the statement; and

o. Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint channels for reporting disputed transactions and lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

2.1.3.20 In addition to the above, a Credit Product statement for credit cards must also explain the cost that would be incurred if the Consumer does not make a full payment for the total amount outstanding by the payment due date by disclosing:

a. The length of time it would take to fully settle the cardholder’s actual existing balance outstanding including the costs of total interest/profit if the Consumer only pays the minimum payment and there is no new transaction on the credit card during that period;

b. The minimum payment amount that would be due; and

c. The following warning statement:

Warning: If you make only the minimum repayment/payment each period, you will pay more in interest/profit/fees and it will take you longer to pay off your outstanding balance.

2.1.3.21 Where any change in the Annual Interest/Profit Rate of a Credit Product is permitted, Licensed Financial Institutions must notify Consumers of the change. Where the rate change is an increase to the part of the Consumer’s interest/profit rate that is added to the variable Base Lending Rate/Financing Rate, the Licensed Financial Institution must not increase that part of the interest/profit rate until after the 30 calendar days’ notice period. This notification must include:

a. The date from which the new rate will change;

b. Details of the old and new rate;

c. The details of the impact on the allocation of payments towards principle and interest/profit amount;

d. If applicable, the revised repayment/payment amount; and

e. The contact information for the unit in the Licensed Financial Institution that will respond to Consumers regarding the change and / or where the Consumer anticipates difficulties meeting any resulting higher repayments/payments.

2.1.3.22 Licensed Financial Institutions must ensure that a Consumer is immediately advised in Writing when a payment is missed for more than calendar 30 days past its due date.

2.1.3.23 When the Consumer is 2 payments in Arrears, the Licensed Financial Institution must advise the Consumer in Writing of the possible consequences of the Arrears as deemed appropriate by the Licensed Financial Institution, including:

a. Legal action;

b. Foreclosure;

c. Redemption of security;

d. Demand for payment from the guarantor; and

e. Negative reporting with the Credit Information Agency.

2.1.3.24 Licensed Financial Institutions must disclose to Consumers the amount of late payment Fees and the dates they were incurred.

2.1.3.25 In the event of sale or transfer by a Licensed Financial Institution of a Consumer’s Credit Product to a Third Party, the Licensed Financial Institution must ensure that a Consumer is advised in Writing, 60 calendar days in advance of the sale or transfer and notified of the name of the Third Party unless otherwise instructed by the Central Bank.

Disclosures Requirements for Shari’ah Financing Products

2.1.3.26 IFIs which offer Shari’ah compliant financing products must comply with all the requirements in Section 2.1.3 of this Article, in addition to complying with the below requirements.

2.1.3.27 IFIs which offer Shari’ah compliant financing products to Consumers must:

a. Explain briefly the Shari’ah concepts applicable to the financing product; and

b. Indicate any takaful/insurance that is required as a condition of the financing product.

2.1.3.28 IFIs must comply with the specific early settlement disclosure requirements set by the Central Bank.

2.1.4 General Provisions for Structured Investment Products / Shari’ah Compliant Structured Products

General Requirements

2.1.4.1 Licensed Financial Institutions that offer structured investment products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Structured product

2.1.4.2 Licensed Financial Institutions must disclose to the Consumers the details of the bank or entity issuing the structured product including the name and contact information of the entity.

2.1.4.3 Licensed Financial Institutions must disclose to the Consumers the responsibilities of the Consumer’s Licensed Financial Institution and that of the entity issuing the product regarding the sales, performance and management of the structured product.

2.1.4.4 Licensed Financial Institutions must disclose the name of the regulatory entity who regulates the product. Where a Licensed Financial Institution intends to use a Third Party to develop a structured product on its behalf for its Consumers, it must disclose this fact and whether the Third Party is regulated within the UAE.

At Point of Entering the Contract

2.1.4.5 Licensed Financial Institutions offering any structured product must provide Consumers with disclosure information on the structured product as may be relevant to the Consumer including:

a. Capital security (any guarantee provided on the whole or portion of the principal amount of investment);

b. The level, nature, extent and limitations of any guarantee on the principal and/or returns;

c. The name of the guarantor of any guarantees and the credit worthiness of the guarantor if rated by an accredited credit rating agency;

d. The risk that some or all the investment may be lost;

e. The risk of using leveraging on an investment and an explanation with an example as to the full cumulative effects on losses of initial capital investment, the potential extraordinary losses possible due to leveraging and that it could result in the possible liquidation of the Consumers pledged assets;

f. Any limitations/restrictions on the sale early redemption of the funds invested; or

g. The consequences, including the cost, of exiting the product early;

h. Description of any assumptions or calculations used to determine performance/cost of the investments including detailed, clear examples where the assumptions are met and failed to be met, and the consequences it has on the investment;

i. The risk or likelihood that the estimated or anticipated return on the product will not be achieved;

j. The potential effects of volatility in price and fluctuation in interest/profit rates and/or movements in exchange rates and underlying securities on the value of the investment; and

k. Separate disclosure of each type of fee and amount associated with the management, purchase, sale, set up and administration of the product and investment account.

2.1.4.6 Licensed Financial Institutions must provide a copy of its assessment as to the suitability of the product based on the financial and risk profile of Consumer including the following warning statement with all numerical illustrations of investment performance:

Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment.

During the Term of the Contract

2.1.4.7 Licensed Financial Institutions must, at minimum, on a quarterly basis, provide to Consumers a statement on their investment which must include, as applicable:

a. The date of the statement and the period covered by the statement;

b. The initial value of the investment at the time the investment was first made;

c. The opening balance or value at the start of the quarter;

d. Each addition to the account including additional amounts invested and the respective dates of the transaction;

e. Each withdrawal and the respective dates of the transaction;

f. The total actual balance at end of the quarter;

g. The number of units held;

h. Disclosure as to the net interest/profit and loss when comparing the cumulative total amount invested at the start against the market value of the investment shown at the end of this quarterly statement;

i. Separate disclosure of each type of Fee and amount associated with the management, administration, sale, set up and ongoing administration of the structured product and investment account; in addition, a cumulative total of these Fees since the investment was initiated must also be disclosed; and

j. Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for disputing a transaction or lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

Disclosure Requirements for Shari’ah Compliant Structured products

2.1.4.8 IFIs which offer Shari’ah compliant structured products must comply with the requirements in Section 2.1.4 of this Article as applicable, in addition to complying with the below requirements.

2.1.4.9 IFIs which offer Shari’ah compliant structured products to Consumers must:

a. Explain in plain language the Shari’ah concepts applicable to the investment accounts including the rights and obligations of Consumers;

b. Disclose to Consumers that any losses arising from the investment (other than losses caused by misconduct, negligence or breach of terms and conditions by the Licensed Financial Institution) must be borne by the Consumers;

c. Disclose that investment account funds are invested and managed in accordance with Shari’ah requirements; and

d. Disclose the minimum amount required to open an investment account. Consumers should also be warned of the consequences of premature termination of the investment account, including forfeiture of profits.

2.1.4.10 In the case of a Licensed Financial Institution offering Shari’ah compliant profit-sharing investment account to Consumers, Licensed Financial Institutions must provide:

a. The profit-sharing ratio between the Licensed Financial Institution and Consumer;

b. The profit distribution method;

c. How and when the Licensed Financial Institution will pay profit and repay the principal;

d. How funds may be dealt with upon maturity; and

e. Additional Fees or change in profit rate resulting from a withdrawal in advance of maturity.

2.1.5 General Provisions for Remittances, Transfers and Foreign Exchange

General Requirements

2.1.5.1 Licensed Financial Institutions that offer remittance, transfer and foreign exchange products and/or services must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

2.1.5.2 Licensed Financial Institutions must provide to Consumers clear information about all applicable Fees imposed on any services and the applicable buy and sell exchange rate. Where available, the Licensed Financial Institution should endeavor to disclose the Fees imposed by the correspondent bank or financial institution or the disbursing remittance service provider. Where Fees are not available, the Licensed Financial Institution should endeavor to provide an estimate or range and provide a disclaimer that states that the transfer may be subject to additional charges.

2.1.5.3 Licensed Financial Institutions must prominently display the following at all public locations where consumers are served, during working hours and in a prominent place of the Licensed Institution’s premises clearly visible to Consumers:

a. Buy and sell rates for money exchanged against the local currency (i.e. AED) for all major foreign currencies that the Licensed Financial Institution deals and posted under the headings “we buy” and “we sell”; and

b. Buy rates for remittances in major foreign currencies that the Licensed Financial Institution deals in against the local currency.

Pre-Transaction

2.1.5.4 Licensed Financial Institutions who carry on money changing and / or other foreign exchange activities must disclose the exchange rate, the difference between the buy and sell rate on a transaction and the Fees imposed by the Licensed Financial Institution for transactions prior to providing the money exchange, remittance, transfer and foreign exchange product and/or service. The exchange rate, the difference between the buy and sell rate on a transaction and Fees must be shown separately to the Consumer.

2.1.5.5 Licensed Financial Institutions who carry on remittance activities, must, where possible, disclose to Consumers the following prior to undertaking any remittance transaction:

a. The information set out in Section 2.1.5.4;

b. The amount in the currency that is expected to be paid to the beneficiary with a warning box that the amount may be subject to additional costs;

c. The Fees imposed by the correspondent bank or financial institution, if known;

d. A clear warning that there may be additional and significant costs charged by the receiving entities should there be Errors / omissions in the remittance information provided by the Consumer causing a rejection of, or delays in the transfer;

e. The estimated time for the funds to be transferred to the beneficiary with a warning box that the time taken to transfer funds can be delayed;

f. The name of the correspondent bank or financial institution, contact information and location where the funds will be available for collection by the beneficiary; and

g. Clear information on procedures for the cancellation of transactions by Consumers which must include the period of time within which the cancellation request can be made by a Consumer, the fact that exchange rate used for the refund of money paid by the Consumer may differ from the original rate used for the transfer, and any costs which could be incurred for the cancellation caused by the Consumer.

Post Transaction

2.1.5.6 Licensed Financial Institutions must include the following information in a receipt issued to its Consumers:

a. Licensed Financial Institutions who carry on money changing or wholesale currency activities:

i. The legal name and contact details (address, phone and email address of the branch) of the Institution;

ii. The date and time of the transaction;

iii. The remittance, transfer and foreign exchange product name;

iv. The serial number for the receipt;

v. The amount paid and the type of currencies tendered by the Consumer;

vi. The amount and the type of currencies issued to the Consumer;

vii. The rate of exchange applied and the buy and sell rate;

viii. The transaction Fees for services rendered to the Consumer including where possible charges that maybe levied by correspondent banks or financial institutions or agents;

ix. Terms and conditions and additional Consumer information as prescribed by the Central Bank; and

x. Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

b. Licensed Financial Institutions who carry on remittance activities:

i. Requirements outlined in sub-clause a.;

ii. The name of the sender;

iii. The name of the beneficiary;

iv. The beneficiary bank account details (account number and branch name);

v. The destination country;

vi. The amount paid of funds to be remitted in AED and its equivalent in foreign currency to be received by the beneficiary;

vii. Where the correspondent institution is not a bank, the name of the correspondent institution or the name of the instant money transfer service provider through which the remittance is routed, contact information and location, where known; and

viii. Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

2.2 Transparency

2.2.1 General Provisions for Transparency

2.2.1.1 The Consumer Protection Regulation and the accompanying Standards focus on the best interests of Consumers by ensuring that Licensed Financial Institutions:

a. Provide competent Advice that is sound, constructive and understandable;

b. Advise Consumers of all reasonable options, substitutes and choices available from the Licensed Financial Institution based on Consumer needs;

c. Eliminate the use of fine print and legal jargon;

d. Correspond in clear and plain language;

e. Explain the full impact of any risks, key restrictions and obligations;

f. Explain the possible negative impact of fluctuations in interest/profit rate and exchange rates on remittances, transfers and foreign exchange products and/or services; and

g. Disclose and explain any potential conflicts of interest between the Consumer and the Licensed Financial Institution.

2.2.1.2 Information must be timely, up-to-date and provided at each stage of the contractual process to ensure Consumers have the information required to facilitate informed decision-making.

2.2.2 Providing Comparative Information/Options

2.2.2.1 Before the sale of a Financial Product and/or Service, Licensed Financial Institutions must present all reasonable product comparisons/options for the type of products that are being considered by the Consumer. This will include comparison of benefits, options, pricing, Fees, risks, terminations costs etc. of the various Financial Products and/or Services that the Licensed Financial Institution offers.

2.2.2.2 Licensed Financial Institutions must not deliberately withhold or conceal the existence of reasonable alternative Financial Products and/or Services that may be appropriate to the Consumer including those with lower costs, financing rates and Fees.

2.3 Responsible Advertising

2.3.1 General Provisions for Responsible Advertising

2.3.1.1 This Section must be read in conjunction with Article 5: Business Conduct of these Standards.

2.3.1.2 Licensed Financial Institutions must apply these Standards to any Advertising activity through any and all channels, including branches, websites, mobile applications, ATMs, telephone banking, account statements, social media and public media comprised of any form of audio, visual and print content.

2.3.1.3 All advertisements must be available in both Arabic and English. At the discretion of the Licensed Financial Institution, other languages can be chosen based on the Consumer target market. Where advertisement is targeted to one linguistic market, Licensed Financial Institutions can target and tailor the advertisement for that linguistic market.

2.3.1.4 An advertisement by the Licensed Financial Institution must:

a. Be accurate, honest and understandable and not be misleading or contrary to actual factual information. An advertisement is misleading if, in any way, its presentation deceives or is likely to deceive the Person to whom it reaches;

b. Highlight key information and, display it prominently;

c. Ensure that all information, including footnotes, qualifiers, or disclaimers, is clearly visible, legible and understandable;

d. Ensure any footnotes, qualifiers, or disclaimers in Advertising are prominently and clearly displayed and of a font size that is clearly readable by Consumers;

e. Ensure that all written text and numbers are of a sufficient font size, minimum 10; and

f. Not contain any false statement of fact, or conceal important facts or information that may be deceptive or create a false impression.

2.3.1.5 An advertisement must be designed and presented in a manner that allows Consumers to immediately identify it as promotional material.

2.3.1.6 Where Licensed Financial Institutions advertise or promote any Financial Product and/or Service, they must disclose the name and logo of the Licensed Financial Institution and its contact details in a prominent manner in the advertisement. The advertisement must also provide the means and manner of easily accessing the details of any qualifying criteria the Consumer will need to meet before obtaining the Financial Product and/or Service. Where the full information is provided through a link on a Digital Channel, the link must provide the ability to re-direct Consumers specifically to the qualifying criteria relevant only for that advertisement/financial promotion.

2.3.1.7 Licensed Financial Institutions must ensure that Advertising or promotional material which contains acronyms (e.g. APR) clearly states the full form of the acronym.

2.3.1.8 When contacting or meeting Consumers, Licensed Financial Institutions’ sales and Advertising/marketing Staff must clearly identify themselves and the Licensed Financial Institution being represented.

2.3.1.9 Pursuant to 2.3.1.8 above, Licensed Financial Institutions must ensure that Advertising/marketing Staff explain the key terms, benefits and risks of the financial product being offered to Consumers.

2.3.1.10 Where Licensed Financial Institutions use advertisement or promotional material that:

a. Advertises any kind of bonus, gifts, points or any other incentives, such advertisement must clearly present and convey information that is required by these Standards to be disclosed. For special financial promotions, contests etc., all rules, entry instructions, dates or deadlines and factors likely to influence Consumers’ understanding of the financial promotion must be clearly stated and advertisements must explain these requirements accurately, unambiguously and completely. If it is not practical, for valid reasons, to include all such details in the advertisement, then the means, manner and channel of directly accessing the full information must be included in all material featuring the financial promotion;

b. Offers introductory low/zero cost Fees, interest/profit rates or pricing, Licensed Financial Institutions must clearly state the expiry date or the specific time period of such an offer and what the regular amount of Fees, interest/profit or pricing will revert to on expiry;

c. Advertises offers of interest/profit rates with terms such as “rates as low as” on credit/financing facilities or deposit/investment rates advertised as “rates as high as”, Licensed Financial Institutions must also state in clear and plain language the conditions, assumptions and chances of the Consumer receiving the lowest interest/profit rate on credit/financing or the highest rate for deposits or investments; and

d. Describes a Financial Product and/or Service as ‘free’, the Financial Product and/or Service must in its entirety be free of all Fees and/or interest/profit rates. If the financial product and/or service is ‘free’ for a certain time period, the advertisement must prominently disclose that the Financial Product and/or Service will not be free upon conclusion of the time period. The Consumer will be advised 30 calendar days in advance before being subject to the amount of expected Fees or the application interest/profit rates. The material must disclose if the product and/or service can be cancelled after the offer had been accepted by the Consumer. If cancellation is possible, disclose how to cancel and the Fees or penalties which apply.

2.3.1.11 Where Licensed Financial Institutions advertise or promote any Financial Product and/or Service that will require the payment of Fees, they must disclose the details of the fees in the advertisement. If it is not practical, for valid reasons, to include the fees in the advertisement, Licensed Financial Institutions must include:

a. An explanation of the means and manner of easily accessing the information in that advertisement; and

b. Where the complete information is provided through a link on a Digital Channel, the link must provide the ability to re-direct Consumers specifically to the terms and conditions or fees relevant only for that advertisement/financial promotion and that specific product and/or service. Key information must be prominently displayed. When the Fee is not a set amount, the disclosure must provide the basis on which the Fee is determined.

2.3.1.12 Advertising material must include statements to warn Consumers of the consequences of a Consumer’s failure to meet the conditions and requirements before and during his/her relationships with Licensed Financial Institutions. If it is not practical, for valid reasons, to include this information in the advertisement, Licensed Financial Institutions must apply the condition stated in Clause 2.3.1.11.b.

2.3.1.13 Licensed Financial Institutions must ensure that where advertisement materials include an Annual Percentage Rate, the rate must clearly be labelled as an Annual Percentage Rate and inclusive of all related Fees. It must clearly state if the interest/profit rate is fixed or variable. In the case of a fixed interest/profit rate, the tenor of the fixed interest/profit rate must be displayed. It must state any conditions on which the advertised rate is based upon.

2.3.1.14 Where Licensed Financial Institutions have a relationship with a Third Party provider for a particular Financial Product and/or Service, the Licensed Financial Institutions must disclose this fact in all advertisements for the advertised Financial Product and/or Service.

2.3.1.15 If advertisement material contains a statement, promise or forecast based on assumptions, Licensed Financial Institutions must ensure those assumptions are reasonable, up to date with market trends and clearly disclosed and labelled as assumptions in the advertisement.

2.3.1.16 Advertisements promoting the potential returns of a financial product must state that the forecast is for illustrative purposes only and is not indicative or construed as likely returns. A warning statement must be prominently displayed beside any statement regarding potential returns that states the potential risks of a loss as well. Any statement or forecast must not mislead at the time it is made.

2.3.1.17 Where the Advertising material does not refer to the benefits or returns but only names the Financial Product and/or Service and/or invites a Consumer to discuss the Financial Product and/or Service in more detail, a Licensed Financial Institution need not display the related warning statements required by Section 2.3 of Article 2: Disclosure & Transparency of these Standards.

2.3.1.18 Where the warning statements required by these Standards do not cover the Licensed Financial Institution’s products and services, the Licensed Financial Institution must devise their own with respect to raising awareness of potential risks associated with the product or service.

2.3.2 Advertisement of Deposit Products

2.3.2.1 Licensed Financial Institutions which offer Deposit Products must comply with all the requirements in Section 2.3.1 of this Article as applicable, in addition to complying with all the requirements of this Section.

2.3.2.2 Licensed Financial Institutions must ensure that where the interest/profit rate for a Deposit Product is quoted in advertisement materials, the advertisement materials must include the following:

a. Whether it is fixed or variable and if fixed, for what period of time;

b. Where more than one term (period of time) is advertised, it must disclose the relevant Annual Interest/Profit Rate for each term and each rate must be displayed in equal font size and prominence;

c. The minimum tenor and/or minimum amount required to qualify for a specified rate of interest/profit, if applicable;

d. The frequency in which the accrued interest/profit will be paid to the Consumer;

e. The basis on which the interest/profit calculation will be made (e.g. monthly/quarterly/annual compounding); and

f. Any other conditions that are required to be met in order to obtain the rate.

2.3.3 Advertisement of Credit Products

2.3.3.1 Licensed Financial Institutions which offer Credit Products must comply with the requirements in Section 2.3.1 of this Article as applicable, in addition to complying with the requirements of this Section of this Article.

2.3.3.2 When displaying the Annual Percentage Rate for a term loan/financing in advertisement materials, Licensed Financial Institutions must also display the total interest/profit and Fees to be paid over the term of the loan/financing by means of an example and disclose any conditions that are required to be met in order to obtain the rate. This provision does not apply to the provision of loans/financing for residential mortgages.

2.3.3.3 Licensed Financial Institutions must ensure that advertisement materials for a residential mortgage contain the following warning statement:

Warning: If you do not keep up your repayments/payments, you may lose your property.

2.3.3.4 Licensed Financial Institutions must ensure that advertisement materials for a loan/financing contain the following warning statement:

Warning: You may have to pay penalties if you pay off a loan/financing early.

Warning: If you do not meet the repayments/payments on your loan/financing, your account will go into arrears. This may affect your credit rating, which may limit your ability to access financing in the future.

2.3.3.5 Licensed Financial Institutions must ensure that advertisement materials for a debt consolidation loan/financing contain the following warning statement:

Warning: Refinancing your loans/financing may take longer to pay off than your previous loan/financing and may result in paying more in interest/profit.

2.3.4 Advertisement of Structured Products

2.3.4.1 Licensed Financial Institutions which offer structured products must comply with the requirements in Section 2.3.1 of this Article as applicable, in addition to complying with the requirements of this Section.

2.3.4.2 Licensed Financial Institutions must assess the suitability of the structured product to the targeted Consumer segment prior to launching the product advertisement and limit the Advertising to that appropriate Market segment.

2.3.4.3 Licensed Financial Institutions must disclose the name of the entity issuing the structured product in the advertisement and promotional material and the regulator of the structured product.

2.3.4.4 Licensed Financial Institutions must not advertise a structured product solely based on the projected or expected return of the structured product.

Where a Consumer may not receive 100% of the initial capital invested, Licensed Financial Institutions must ensure that advertisement materials for a structured product, contains the following warning statement:

Warning: If you invest in this product, you may lose some, all or more than the amount of money you invested.

2.3.4.5 Where the invested funds provide for early redemption, Licensed Financial Institutions must ensure that advertisement materials for the structured product contains the following warning statement:

Warning: If you cash in your investment before [specify the particular time], you may lose some or all of the money you invest and incur early redemption fees.

2.3.4.6 Licensed Financial Institutions must ensure that advertisement for a structured product where the funds are locked in i.e. no access to funds for the term of the product contain the following warning statement:

Warning: If you invest in this product, you will not have any access to your money for / until [insert time required before the product matures].

2.3.4.7 Where Licensed Financial Institutions give information about past performance when Advertising a structured product and/or service, this information must:

a. Be based on actual performance;

b. Be based on a structured product similar to that being advertised;

c. Not be selected so as to exaggerate the success or disguise the lack of success of the advertised structured product and/or service;

d. State the source of the information relied on regarding the performance;

e. State clearly the period chosen during which the actual performance occurred and how it relates to the structured product being advertised;

f. Include the actual performance during the most recent period;

g. Indicate, where they arise, details of all transaction costs, Fees and interest/profit that have been taken into account or not taken into account in the calculation of the actual performance; and

h. State, where applicable, the assumptions upon which the actual performance was calculated.

2.3.4.8 Licensed Financial Institutions must ensure that advertisement materials which contain information on past performance, must also contain the following warning statement:

Warning: Past performance is not a reliable guide to future performance.

2.3.4.9 Licensed Financial Institutions must ensure that advertisement materials which contain illustrations or information on simulated performance must also contain the following warning statement:

Warning: These figures are estimates / examples only. They are not a reliable guide to the future performance of this investment.

2.3.4.10 Licensed Financial Institutions must ensure that advertisement materials do not describe a structured product as guaranteed or partially guaranteed unless:

a. There is a legally enforceable contract with a credible Third Party who undertakes to meet, to whatever extent is stated in the advertisement and marketing materials, the Consumer's claim under the guarantee;

b. The Licensed Financial Institution has made and can demonstrate that it has made an assessment of the quality and value of the guarantee;

c. It clearly states the level, nature and extent of limitations of the guarantee and the name of the guarantor; and

d. Where it is the case, the advertisement materials must state that the guarantee is from a Third Party approved by a Licensed Financial Institution.

2.3.5 Advertisement of Remittances, Transfers and Foreign Exchange

2.3.5.1 Licensed Financial Institutions that offer remittance, transfer and foreign exchange products and/or services must comply with the requirements in Section 2.3.1 of this Article as applicable, in addition to complying with the requirements of this Section.

2.3.5.2 Licensed Financial Institutions must ensure that advertisement material contains the following warning statement:

Warning: Additional fees may be levied by the correspondent 0 22/00216121 institution or entity providing financial services to the beneficiary of remittances.

Warning: Penalties and Fees may be applied if there is a customer error or omission in providing correct or incomplete information for remittances.

2.3.5.3 Licensed Financial Institutions must ensure that where an advertised remittance, transfer and foreign exchange product and/or service is denominated or priced in a foreign currency, or where the value of an advertised remittance, transfer and foreign exchange product and/or service may be directly affected by changes in foreign exchange rates, the advertisement contains the following warning statement:

Warning: This product/service may be affected by changes in foreign currency exchange rates.

2.3.5.4 Where Licensed Financial Institutions advertise an attractive promotional foreign exchange rate, Licensed Financial Institutions must specify the period of applicability and any restrictions/conditions/assumptions associated with the offer.

2.3.5.5 Where the estimated time for completing a remittance is advertised, it must include the following statement:

Warning: The actual time to complete a transaction may differ from estimates due to increased scrutiny of transactions by the correspondent bank/financial institution or entity providing financial services to the beneficiary of remittances.