Regulatory Alerts2022-04-23
Financial Consumer Protection Act, 2022
Enacted by the President and National Assembly of Seychelles, this Act establishes a comprehensive regulatory framework to protect financial consumers by designating the Central Bank and Financial Services Authority as Competent Authorities. It mandates financial services providers to ensure transparent advertising, maintain accurate records for seven years, implement robust internal complaint mechanisms, and deliver standardized disclosure forms detailing fees, risks, and terms before contract execution. The legislation grants regulators robust enforcement powers to impose administrative penalties of up to SCR 400,000 for non-compliance or false reporting, while introducing provisions for corrective actions, punitive damages, and the prohibition of abusive practices like unfair bundling and excessive default interest.