Notice No. 15/2020 of 22 June on the Pricing and Disclosure of Financial Services and Products

PUBLICADO NO DIÁRIO DA REPÚBLICA, I SÉRIE, N.º 89, DE 22 DE JUNHO NOTICE NO. 15/20 SUBJECT: FINANCIAL SYSTEM - Pricing of Financial Services and Products and Their Disclosure

Whereas it is necessary to ensure the minimum information to be disclosed to the public regarding fees and charges, interest rates, and exchange rates practiced by Financial Institutions, and the format for providing this information to facilitate its consultation and comparison among different Institutions.

In accordance with the provisions of paragraph f) of number 1 of Article 21 of Law No. 16/10 of 15 July, the Law of the National Bank of Angola, combined with number 3 of Article 73 and number 1 of Article 75, both of Law No. 12/15 of 15 June, the Framework Law for Financial Institutions.

I HEREBY DETERMINE:

Article 1. (Subject Matter) The present Notice establishes the minimum information requirements that must be met in the disclosure of the general conditions with financial effects for the financial products and services made available to the public by Financial Institutions, hereinafter abbreviated as Institutions.

Article 2. (Scope) The present Notice applies to Financial Institutions supervised by the National Bank of Angola.

CONTINUATION OF NOTICE NO. 15/2020 Page 2 of 8 Article 3. (Definitions) For the purposes of this Notice, the following shall apply: a) Customer: an individual or legal entity, group of individuals or legal entities, public or private, affiliated or not, acting jointly, contractually linked to a Financial Institution to which the latter makes available products or services. b) Fees: the monetary payments due from customers by Institutions as remuneration for services provided or subcontracted to third parties, within the scope of their activity. c) Credit: the act by which a Financial Institution, whether Banking or Non-Banking, acting for valuable consideration, places or promises to place funds at the disposal of an individual or legal entity against the latter's promise to repay them on the due date, or assumes, in the interest of the same, an obligation by signature, such as a guarantee. d) Value Date: the accounting date of an operation, i.e., the date from which an operation is effectively taken into account in the calculations of the Financial Institution and may differ from its transaction date. e) Availability Date: the moment from which the holder may freely proceed to move funds deposited or transferred to their current account, without being subject to paying interest for the mobilization of these funds. f) Charges: the costs borne by Institutions, due to them by third parties, and passed on to customers, namely payments to land registries, notarial offices, or of a fiscal nature. g) Deposit: a contract by which an entity (depositor) entrusts money to a Banking Financial Institution (depositary), which acquires the right to dispose of it for its business, assuming the responsibility to repay it, with or without interest, within the agreed period. h) Business Day: a day of the week from Monday to Friday, excluding national holidays.

CONTINUATION OF NOTICE NO. 15/2020 Page 3 of 8 i) Loan: a contract by which one party places funds at the disposal of another for repayment. j) Distance Communication Means: any means of communication that can be used without the physical and simultaneous presence of the Financial Institution and the customer. k) Pricing Schedule: a set of permanently updated information regarding the general conditions with financial effects of financial products and services, made available to the public by Institutions and composed of the Pricing Schedule for Fees and Charges and the Pricing Schedule for Interest Rates and Exchange Rates. l) Financial Products and Services: all those commercialized by Institutions subject to the supervision of the National Bank of Angola with the public. m) Durable Medium: any instrument that allows the customer to store information addressed personally to them, so that in the future they can easily access the stored information for a period adequate to its intended purpose, and thus reproduce that information in full and unaltered. n) Effective Annual Total Cost of Credit (EATCC): the total effective cost of credit, including interest, fees, taxes, charges, insurance, and other expenses charged to the consumer directly linked to the use of credit. o) 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. p) Fixed Interest Rate: the interest rate that remains unchanged during the period specified in the contract and may coincide with the life of the loan. q) Variable Interest Rate: the interest rate that varies according to the loan duration, calculated based on the reference interest rate (LUIBOR), to which a fixed margin or spread is added or subtracted.

CONTINUATION OF NOTICE NO. 15/2020 Page 4 of 8 Article 4. (Pricing Schedule)

1. Institutions must disclose to the public a complete Pricing Schedule of fees, charges, interest rates, and exchange rates applicable to their financial products and services.
2. The National Bank of Angola shall establish, by Instruction, the tables comprising the Pricing Schedule and the information that must obligatorily appear therein.
3. Institutions must complete the tables comprising the Pricing Schedule with true, complete, unambiguous, updated information, and use clear language in any explanatory notes.
4. The Pricing Schedule provides for the presentation of information by type of banking operation, distinguishing between individual customers and companies, and allows knowing, namely: 4.1. Fees and Charges: a) The maximum value of all fees due from customers, with no overcharging of fees higher than indicated or of other fees not provided for in the Pricing Schedule; b) The indicative value of the main types of charges levied on customers, corresponding to amounts due from third parties to Institutions and passed on to their customers, including charges levied by other institutions for the execution of foreign operations, payments to land registries or notaries, and those of a fiscal nature. 4.2. Interest Rates a) The interest rates most frequently practiced by the Institution in the most habitual operations for remunerating financial applications and granting credit, namely: i. The gross nominal annual rate on deposits (GNARD); ii. The effective annual rate (EAR) or the effective annual total cost of credit (EATCC) resulting from credit operations. 4.3. Exchange Rates a) The foreign currency buying and selling exchange rate, with no application of selling rates higher or buying rates lower than those stated in the Pricing Schedule. 4.4. The most relevant agreements with financial effects, namely: a) Value dates and availability dates relating to current account movements; b) The number of days underlying the interest calculation and the rounding of the interest rate.

CONTINUATION OF NOTICE NO. 15/2020 Page 5 of 8 Article 5. (Publication of the Pricing Schedule)

1. The National Bank of Angola establishes, through an Instruction, the rules for publication and amendment of the Pricing Schedule.
2. Institutions must publish their updated Pricing Schedule in all counters and public service areas, in a highly visible and directly accessible location, on easy-to-use consultation devices.
3. Institutions must make the complete and updated Pricing Schedule available on their website pages, in a highly visible, directly accessible location, easily identifiable, without the need for prior registration by interested parties.
4. The Pricing Schedule of each Financial Institution may be disclosed by the National Bank of Angola on the Consumer Banking Portal.

CONTINUATION OF NOTICE NO. 15/2020 Page 6 of 8 Article 6. (Other Duties)

1. The disclosure of the Pricing Schedule does not exempt Institutions from complying with other information duties established in legal or regulatory instruments, to be provided to customers prior to acquiring any product or financial service.
2. Whenever, under contracts concluded with their customers, Institutions are granted the right to modify contractual conditions on their own initiative through an amendment of the Pricing Schedule, they must communicate the content of such amendments to their respective customers at least 30 (thirty) days prior to the intended application date, without prejudice to other legally or regulatorily fixed periods.
3. Without prejudice to the provisions of current law or regulations, Institutions must ensure that the information provided under the preceding paragraph allows customers to identify the conditions that have been amended.

Article 7. (Provision of Services through Third Parties) The general duties established above must also be observed whenever Institutions provide their services through third parties.

Article 8. (Submission of the Pricing Schedule to the National Bank of Angola)

1. Institutions must submit to the National Bank of Angola, in accordance with terms fixed by Instruction, the Pricing Schedule duly completed with information regarding operations conducted by them.
2. Whenever amendments are made to the content of the Pricing Schedule referred to in the preceding paragraph, Institutions must send the updated Pricing Schedule to the National Bank of Angola at least the minimum period prior to its entry into force, as fixed through an Instruction.
3. Institutions are responsible, before the National Bank of Angola and third parties, for the accuracy, truthfulness, and currency of the information provided in the Pricing Schedule.

CONTINUATION OF NOTICE NO. 15/2020 Page 7 of 8 Article 9. (Compliance with the Information Duty)

1. Institutions bear the burden of proving effective compliance with the information duties provided for in this Notice.
2. In the absence of a contractual provision, the information referred to in number 3 of Article 6 of this Notice must be provided through the medium and means usually used, unless customers expressly authorize a change in the medium and means of communication for this purpose.

Article 10. (Transitional Regime) Institutions must comply with the provisions of this Notice within 90 (ninety) days after its publication.

Article 11. (Offences) Violation of the provisions of this Notice is punishable in accordance with Law No. 12/2015 of 17 June, the Framework Law for Financial Institutions.

Article 12. (Questions and Omissions) Questions and omissions arising in the interpretation and application of this Notice are resolved by the National Bank of Angola.

Article 13. (Repealing Provision) All legislation contrary to the provisions of this Notice is repealed, namely Notice No. 02/2014 of 28 March.

CONTINUATION OF NOTICE NO. 15/2020 Page 8 of 8 Article 14. (Entry into Force) The present Notice enters into force on the date of its publication.

LET IT BE PUBLISHED. Luanda, 09 June 2020. THE GOVERNOR JOSÉ DE LIMA MASSANO