Regulatory Alerts2020-12-25
Consumer Protection Regulation
Issued by the Central Bank of the United Arab Emirates, this regulation establishes a comprehensive, principles-based framework to protect natural persons and sole proprietorships utilizing financial products and services from licensed financial institutions. It mandates strict standards for market and business conduct, requiring institutions to strengthen governance over product design and sales, ensure timely and effective consumer disclosures, implement clear complaint resolution mechanisms, and adopt responsible financing practices to prevent over-indebtedness. The regulation applies to all licensed financial entities, prevails over conflicting regulatory requirements, and aligns domestic consumer protection practices with international standards while promoting financial inclusion and Shari’ah compliance.