Circular on the Guide to Financial Institutions Services Fees and Amendment of Regulatory Articles Related to Administrative Fees

Item D Saudi Central Bank No. 472038000 Date: 1447/07/02 (AH) Attachments: 1 folder of papers + 1 identification guide

OIPT Unit To: Saudi Central Bank (SAMA) Circular Respected Sirs, Peace be upon you and God's mercy and blessings.

Subject: Guide to Financial Institutions Services Fees and Amendment of Regulatory Articles Related to Administrative Fees.

Based on the Saudi Central Bank's supervisory and regulatory role, and relying on the powers granted to it under the Saudi Central Bank System issued by Royal Decree No. (M/63) dated 11/4/2441 AH, and other related regulations, and extending its role in issuing instructions and procedures to protect clients of financial institutions under its supervision, and referring to the updated banking fee schedule issued by Circular No. (381000095093) dated 01/9/2441 AH, and to the regulatory provisions related to determining the cap on administrative fees when granting financing, as stipulated in the updated consumer financing regulations issued by Circular No. (351000116619) dated 01/9/2441 AH, and the principles and rules for protecting financial institution clients issued by Circular No. (44006639) dated 12/1/2441 AH, and the standard form of individual consumer financing contract issued by Circular No. (44058467) dated 21/7/2441 AH,

Enclosed is the Guide to Financial Institutions Services Fees, which financial institutions under the supervision and regulation of the Saudi Central Bank must adhere to when imposing fees for services and products provided to clients, and this guide abrogates any provisions inconsistent with it. You will also find enclosed a copy of the amended regulatory provisions related to administrative fees, approved by the competent authority, which amend the following articles: First: Article (9) of the updated consumer financing regulations issued by Circular No. (351000116619) dated 01/9/2441 AH. Second: Rule No. (1) of the behavioral rules under the principles and rules for protecting financial institution clients issued by Circular No. (44006639) dated 12/1/2441 AH. Third: Paragraph (1, 1) of Article (11) of the standard form of individual consumer financing contract issued by Circular No. (44058467) dated 21/7/2441 AH.

For your information and implementation within (60) days from the date of its publication on the Saudi Central Bank's website.

Yours sincerely, Abdullah bin Saleh Al-Humaid Deputy Governor for Financial Behavior

Distribution Scope: All financial institutions under the supervision and regulation of the Saudi Central Bank. P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000

[Second Page/Section] The amended regulatory provisions related to administrative fees: Instructions

Article (9) of the updated consumer financing regulations issued by Circular No. (351000116619) dated 01/9/2441 AH Regulatory text after amendment: Financing entities must comply with the instructions issued by the Saudi Central Bank regarding administrative fees.

Rule No. (1) of the behavioral rules under the principles and rules for protecting financial institution clients issued by Circular No. (44006639) dated 12/1/2441 AH .." The bank or financing company must comply with the instructions issued by the Saudi Central Bank regarding administrative fees. b. Administrative fees shall not be deducted except after contract signing, except for real estate valuation costs, which may be deducted after the client obtains initial approval prior to granting residential financing.

Paragraph (1, 1) of Article (11) of the standard form of individual consumer financing contract issued by Circular No. (44058467) dated 21/7/2441 AH The beneficiary is committed to paying the costs and fees agreed upon in Article (5) of the contract, provided that the total of these costs and administrative fees does not exceed SAR 2,500 or 0.5% of the financing amount, whichever is less, excluding government taxes.".

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000