One of Central Bank’s objectives, as mandated by the Decretal Federal Law No. 14 of 2018 Regarding the Central Bank & Organization of Licensed Financial Institutions and Activities and its amendments, is to establish Regulations for the protection of Consumers of Licensed Financial Institutions.

The Central Bank has the right to establish a unit with an independent legal personality to receive and to handle Complaints from Consumers of Licensed Financial Institutions.

This Regulation is issued pursuant to the powers vested in the Central Bank according to Article (121) of the aforementioned Decretal Federal Law and to Article (110) of the Federal Law No. 6/2007 concerning the Organization of Insurance Operations and its amendments.

Post replacement of the Insurance Authority with the Central Bank in all competencies and legislation, pursuant to Article (2) of the Decretal Federal Law No. 24/2020 concerning Amending Certain Provisions of the Federal Law No. (6) of 2007 concerning the Establishment of Insurance Authority and Regulation of Insurance Operations and its amendments, the Central Bank is now the regulator of insurance operations according to the Federal Decree Law No. 24/2020 on the Establishment of Insurance Authority and Regulation of Insurance Operations.

Therefore, this Regulation covers Insurance Companies as defined in the Federal Law No. 6/2007 on the Organization of Insurance Operations and its amendments in addition to Licensed Financial Institutions governed by the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities and its amendments.

This Regulation is to provide for the establishment of an independent Ombudsman Unit that enjoys independent legal personality, and to confer its powers and functions; to provide for a complaint process and resolutions mechanism; to provide for an appeal mechanism in relation to determinations made by the Ombudsman Unit; to set out the Ombudsman Unit’s funding and to provide for the appointment of the Board of Directors and engage Persons to the Ombudsman Unit.

This Regulation also establishes the overarching Regulatory framework for the Ombudsman Unit and its interactions with Licensed Financial Institutions and Insurance Companies in relation to Consumer Complaint resolution in the State.