Regulatory Alerts2021-11-11
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Description of Plain Language
NAMFISA issued Standard GEN. 10-17 to mandate plain language requirements for all documents presented by financial institutions and intermediaries to their clients. The standard requires these documents to utilize everyday vocabulary, active voice, short sentences, defined jargon, and clear formatting while including glossaries where necessary to ensure client comprehension. Institutions must verify that clients acknowledge the documents in writing without duress, confirming they understand their rights, obligations, and can make informed decisions.
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