Notice No. 05/2020 of 28 February

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 22, OF 28 FEBRUARY NOTICE NO. 05/2020 SUBJECT: FINANCIAL SYSTEM

• Information Duties Regarding the Marketing of Dual and Indexed Deposits

Considering the development of the Angolan Financial System and the increasing complexity of financial products marketed by Financial Institutions, it is increasingly important to determine the frameworks under which these products are marketed, in order to implement responsible practices and ensure the transmission of information necessary for clients' informed decisions; Furthermore, given the need to strengthen regulation concerning information duties regarding bank deposits, notably Notice No. 13/2016 of 5 September, there is a need to define the information duties of Banking Financial Institutions regarding the marketing of dual and indexed deposits, specifically dual and indexed deposits; Pursuant to the combined provisions of paragraph f) of section 1 of Article 21 and paragraph d) of section 1 of Article 51, both of Law No. 16/10 of 15 July – the Law of the National Bank of Angola, and Articles 72 and 73 of Law No. 12/15 of 17 June – the Framework Law on Financial Institutions; I DETERMINE:

Artigo 1. (Object)

1. This Notice establishes the information duties to be observed by Banking Financial Institutions when marketing dual and indexed deposits, specifically dual and indexed deposits.
2. The following dual and indexed deposits are within the scope of this Notice: a) Indexed Deposits, understood as bank deposits whose characteristics differ from a traditional deposit because their returns are associated, wholly or partially, with the evolution of other relevant financial or economic instruments or variables, namely shares or a basket of shares, an index or a basket of equity indices, an index or a basket of commodity indices; and, b) Dual Deposits, understood as financial products resulting from the combined marketing of two or more bank deposits.

Artigo 2. (Scope) This Notice applies to Banking Financial Institutions supervised by the National Bank of Angola, under the terms and conditions set out in Law No. 12/15 of 17 June, the Framework Law on Financial Institutions, hereinafter abbreviated as Institutions.

Artigo 3. (Definitions)

1. Without prejudice to the definitions established in the Framework Law on Financial Institutions, combined with those in Notice No. 02/14 of 28 March and Notice No. 13/16 of 5 September, for the purposes of this Notice, the following are understood: a) Client: an individual or collective person, a group of individuals or collectives, public or private, affiliated or not, acting together, contractually linked to a financial institution to which it places products or services at its disposal. b) Gross Nominal Annual Rate (TANB): the annual remuneration rate of a financial investment. It is a simple nominal interest rate because it does not consider the evolution of inflation or the capitalization of interest that may be paid over the deposit period. The rate presents a gross component, as it does not account for the deduction of tax (on income obtained by individuals/collectives) that will apply to the interest. c) Interest Rate: the price of money that the borrower must pay to the owner of the lent capital, over a specified period, expressed as a percentage.

Artigo 4. (Information Sheet)

1. Without prejudice to other legally prescribed information duties, Institutions must deliver to clients an Information Sheet prior to the conclusion of the contract, which must be prepared according to the models in Annexes I and II of this Notice, forming an integral part thereof, depending on whether it is a dual or indexed deposit, respectively.
2. The use of terms and expressions in the commercial designation of these products, such as "poupança" or "aforro", or other terms that are inadequate given their risk characteristics, is prohibited.
3. Institutions may not alter the structure of Annexes I and II of this Notice, and must limit themselves to filling in the pre-established fields to characterize the product they intend to market.
4. The Information Sheet must be submitted for prior approval (before the start of dissemination and marketing of the respective product) by the National Bank of Angola.
5. The National Bank of Angola may request supplementary information from Institutions if deemed necessary for the assessment of the Information Sheet project.
6. If the National Bank of Angola does not issue a ruling within 15 (fifteen) business days after receiving the Information Sheet project, it is deemed approved.
7. Whenever Institutions provide information about an indexed or dual deposit on their website or other digital medium, it must be accompanied by the respective Information Sheet in a clearly visible and accessible location.

Artigo 5. (Capital Guarantee)

1. In indexed and dual deposits, the amount to be delivered to the depositor at maturity may not, under any circumstances, be less than the deposited amount.
2. Without prejudice to the above, if early withdrawal of the deposit is contractually permitted and occurs wholly or partially, the amount delivered to the depositor may not, under any circumstances, be less than the deposited amount.

Artigo 6. (Remuneration)

1. Whenever the deposit remuneration rate is not fixed and determined prior to contracting, its variation must be related to the evolution of other relevant financial or economic instruments or variables, whose source is independent of the depositary institution.
2. The provision in the preceding paragraph does not exclude the possibility of assigning promotional remuneration rates, provided that the depositor knows, prior to contracting, the remuneration rate to be applied to the deposit, including, if applicable, the effect of the promotional rate.
3. The relationship mentioned in paragraph 1 must be defined prior to the conclusion of the contract and must always refer to the same instruments or variables throughout the deposit period, without clauses in the respective contracts nullifying this link in any way, subject to the option of establishing maximum and minimum limits on the rate in question.

Artigo 7. (Value Date and Availability Date)

1. The crediting of the repayment at maturity for indexed and dual deposits must be carried out with a value date and availability date of the same day.
2. In case of early withdrawal, the crediting of the amount must be carried out on the date resulting from the contractually stipulated conditions for exercising that withdrawal, or, when silent, by the next business day following receipt of the withdrawal request notification. In either case, the value date and availability date must be those at the moment of crediting.
3. The crediting of remunerative interest relating to indexed and dual deposits must be carried out with a value date and availability date by the next business day following the last day considered for their calculation.
4. When transmitting an order to establish or reinforce a deposit, from a deposit account, the respective amount may not be considered unavailable in the source account before the value date of the establishment or reinforcement, unless express instruction is issued by the depositor simultaneously with the establishment or reinforcement order.

Artigo 8. (Conduct and Marketing Rules)

1. Institutions, in the negotiation, conclusion, and execution of contracts relating to dual and indexed deposits, must provide complete, true, current, clear, and objective information, presented in a legible format.
2. Institutions must provide standardized pre-contractual information, embodied in a contract drafted in accordance with the requirements of the preceding paragraph, together with their respective Information Sheet.
3. In marketing this type of product, Institutions must observe the following conduct rules, notwithstanding the provisions in the current framework regarding consumer protection: a) Ensure the training of professionals designated to market this type of product, so that they possess the necessary knowledge to clearly and in detail explain the characteristics of dual and indexed deposits to clients, with the National Bank of Angola able to request information on this matter if deemed appropriate for evaluating this requirement; b) Act with competence, diligence, prudence, and good faith, so as not to defraud the client deliberately, negligently, imprudently, abusively, coercively, or through misleading advertising; and c) Clearly explain to the client the characteristics and remuneration conditions of dual and indexed deposits, ensuring that they understand the associated risks and the payment model for remuneration, as well as the commissions and expenses involved.

Artigo 9. (Contractual Information)

1. Deposit contracts covered by this Notice must specify all informational elements contained in their respective Information Sheet.
2. Institutions must ensure clients access to a copy of the contract, before and at the moment of its conclusion, to allow detailed analysis of the contractual conditions.
3. During the contract's validity and whenever clients request, a copy must be made available.

Artigo 10. (Statement and Supplementary Information)

1. Institutions must provide periodic information to their clients regarding deposits covered by this Notice, through the provision of a statement, which must include at least the following elements: a) Start and end dates of the period to which the provided information refers; b) Capital amount deposited at the end of the period; and c) Description and dates of movements carried out during the period – namely, establishment, reinforcements, early withdrawals, maturity, remuneration payment, and charge of expenses – with the indication of their respective value dates.
2. In case of remuneration payment or charge of commissions or expenses associated with deposits covered by this Notice, Institutions must provide their clients, together with the statement or other document, the following supplementary information to the statement: a) In case of remuneration payment: i. Start and end dates of the relevant period; ii. Value date of payment; iii. Amount paid; iv. Applied remuneration rate (Gross Nominal Annual Rate); v. Value of the instruments or variables that determined the product's return, used for calculating remuneration, if applicable; vi. Capital amount used to calculate remuneration; vii. Withheld taxes; and viii. Payment method, if remuneration is not credited to the deposit account itself. b) In case of charge of commissions or expenses: i. Start and end dates of the relevant period; ii. Identification of the commission or expense; iii. Charge date; iv. Amount charged; and v. Taxes.

Artigo 11. (Information Duty)

1. The information provided in the preceding article must be made available: a) At a minimum annual frequency, for deposits with an initial term exceeding 1 (one) year; b) At a minimum quarterly frequency, for deposits with an initial term of less than 1 (one) year.
2. The information provided in paragraph 2 of Article 10 must be made available whenever one of the movements stipulated therein occurs, or alternatively, at the frequency set out in the preceding paragraph of this article.
3. Institutions may fulfill the information duties stipulated in this Notice through distance communication, on paper or any other durable medium, unless the client expressly requests information to be provided on paper.
4. Institutions bear the burden of proof regarding the effective provision to clients of the information referred to in Article 10.

Artigo 12. (Advertising)

1. Before publishing advertising campaigns, Institutions must submit to the National Bank of Angola a copy of the advertising content, in electronic medium, accompanied by their respective Information Sheet and correspondence that must mention, among other information, the subject matter, target audience, and duration of the campaigns, as well as contact details for any clarifications.
2. The use of terms and expressions such as "poupança" or "aforro", or other terms that are inadequate given the risk characteristics of deposits covered by this Notice, is prohibited in advertising campaigns.
3. Advertising messages relating to dual and indexed deposits must observe all legal principles and provisions set out in Law No. 09/2017 of 13 March, the General Advertising Law, and Notice No. 03/2015 of 20 April on advertising of financial products and services.
4. The National Bank of Angola validates the advertising of these products, based on an evaluation model for compliance with principles and rules stipulated by current legislation governing advertising.
5. If the National Bank of Angola does not issue a ruling within 30 (thirty) business days after receiving the Information Sheet content, it is deemed approved.

Artigo 13. (Sanctions) Non-compliance with the mandatory rules established in this Notice is punishable under the Framework Law on Financial Institutions.

Artigo 14. (Doubts and Omissions) Doubts and omissions arising in the interpretation and application of this Notice are resolved by the National Bank of Angola.

Artigo 15. (Entry into Force) This Notice enters into force on the date of its publication. PUBLISH Luanda, 21 February 2020 THE GOVERNOR JOSÉ DE LIMA MASSANO

ANEXO I Information Sheet | [commercial designation of the indexed deposit] Agency Designation: [Agency Name] Agency Number: [xxxxxxxxx]

1. Designation [Commercial designation of the indexed deposit]
2. Classification A financial instrument that, although assuming the legal form of an already existing financial instrument, incorporates risks and characteristics of two or more financial instruments of different structure and nature under the appearance of a single financial instrument, with its returns associated, wholly or partially, with the evolution of the price of other assets.
3. Product Characterization [Indication that it is an indexed deposit and a brief description of its characteristics] INDEXED DEPOSIT This product presents risks in various dimensions, so the [insert name of FI] recommends that its clients read and analyze the remuneration and capital guarantee conditions, as well as associated risks, before signing. Institution Logo
4. Recommended Client Profile [Indication of the client profile to which the product is intended, particularly regarding its risk aversion level and tolerance to fluctuations in the value of invested capital and the objectives underlying the product contract (e.g., liquidity, returns, and tax benefits)]
5. Access Conditions [Description of access conditions to the product, if applicable]
6. Capital Guarantee [Express mention of the existence of capital guarantee (i.e., the amount delivered to the depositor at maturity may not, under any circumstances, be less than the deposited amount), with maturity indicated, conditions in case of early withdrawal (if permitted), and term for capital repayment]
7. Remuneration Guarantee [Express mention of the existence or non-existence of remuneration guarantee. If it exists, the guaranteed minimum remuneration must be indicated]
8. Risk Factors [Identification of main factors influencing the product's value, namely price variation risk, interest rate risk, exchange rate risk, credit risk, and country risk]
9. Underlying or Associated Instruments or Variables [Identification and characterization of each underlying or associated instrument or variable, particularly regarding its composition (if applicable) and appropriate measures for returns and risk. Presentation of the evolution of underlying or associated instruments/variables over a period including at least the last 12 months, preferably graphically to objectively reflect data evolution] 10.Modality [Indication of the fund movement modality for the indexed deposit. If it corresponds to a special regime, description of that regime] 11.Term [Term of the indexed deposit. Indication of start and maturity dates, if pre-defined, and value date for capital repayment] 12.Early Withdrawal [If early withdrawal of funds is permitted, describe the respective conditions, noting that the amount delivered to the depositor may not, under any circumstances, be less than the initially invested capital. If early withdrawal incurs penalties, describe the calculation method. If it is a non-early-withdrawable deposit, it must be expressly stated that early withdrawal of funds is not admitted] 13.Renewal [If the product can be renewed at maturity, indicate:

• Whether renewal is automatic or optional. In the latter case, also indicate terms and exercise method
• Applicable renewal conditions] 14.Currency [Currency of the indexed deposit, including currency associated with the deposit, capital repayment, and remuneration payment] 15.Amount [Indicate minimum and maximum amounts, if applicable. Indication of the possibility to make additional fund deliveries and description of applicable conditions (particularly minimum/maximum amounts, frequency, and applied remuneration rate)] 16.Remuneration [Description of the remuneration method for the invested amount, with indication of its calculation formula and, if applicable, minimum and maximum remuneration rates. Indication of sources to track the evolution of product returns. If interest capitalization is possible, indicate its frequency and whether capitalization is automatic or optional. In the latter case, also indicate terms and exercise method by the depositor. Dates and payment method for remuneration (notably, credit to another account or incorporation into capital) and calculation base and rounding method used in its determination, if applicable] 17.Tax Regime [Indication of the tax regime applicable and known at the time of marketing] 18.Other Conditions [Other applicable conditions. If applicable, identification and quantification of any commissions and expenses associated with the product] 19.Depositary Institution [Identification of the Depositary Institution and indication of contacts and means or locations through which the client can make the investment, obtain additional information, or clarify any doubts regarding it] 20.Validity of Conditions [Indication of the validity period of presented informational elements, or subscription period, if applicable. If applicable, other restrictions on the validity of presented conditions should also be indicated (e.g., maximum amount available for subscription)] 21.Supervisory Authority National Bank of Angola

Date of delivery of the information sheet to the client: [DD/MM/YYYY] Considering the complexity and risk of this deposit, I confirm that I understand its risk characteristics and remuneration method, and that they are adequate to my objectives, financial situation, and knowledge regarding indexed deposits. I declare that I received this information sheet before subscribing to this product and that I understand its characteristics and risks.

---

---

---

---

---

---

Client Signature

---

---

Financial Institution Signature Filling Notes: The completion of the information sheet must comply with the following rules: a) All fields must be completed, without adding or eliminating fields, even if not applicable; b) Institutions must insert their logo in the designated space and not exceed established dimensions. c) The font type used to fill fields must be "Arial" with a minimum size of 9 points; d) If any field cannot be completed due to the specific characteristics of the product, the notation "not applicable" should be placed; e) References to remuneration rates should be made, whenever possible, in terms of Gross Nominal Annual Rate (TANB); f) Any reference to historical data must mention the period it refers to and clarify that they are past data, not constituting a guarantee of future returns. The end date of the historical reference period may not have occurred more than one month before the start of product marketing dissemination; g) Below the phrase "I declare that I received this information sheet before subscribing to this product and that I understand its characteristics and risks," the client must handwrite said phrase.

ANEXO II Information Sheet | [commercial designation of the dual deposit] Agency Designation: