Regulatory Alerts2012-03-22
Investment on a Customer’s Account Without His Explicit Agreement
The Supervisor of Banks issued this clarification to prohibit banking corporations from executing investment decisions on customer accounts without explicit consent. The regulator mandates that silence does not constitute acceptance under the Contracts Law, requiring banks to obtain affirmative agreement before acting on any investment suggestions. Additionally, any pre-arranged increases to savings schemes must be documented in writing with separate signatures and clear cancellation rights.
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