Notice No. 12/2016 of September 5 on Consumer Protection for Financial Products and Services

NOTICE NO. 12/2016 SUBJECT: CONSUMER PROTECTION FOR FINANCIAL PRODUCTS AND SERVICES

Given the need to align consumer protection policies for financial products and services, as well as the objective of promoting transparency and discipline in the retail financial market, in order to foster more equitable relationships between Financial Institutions and consumers;

Considering the recent publication of the Basic Law of Financial Institutions, which introduced new provisions regarding behavioral supervision;

Therefore, and under the combined provisions of item f) of paragraph 1 of Article 21st and item d) of paragraph 1 of Article 51st of Law No. 16/10, of July 15 – Law of the Bank of Angola, and Articles 70th, 71st, 73rd, and 75th, all of Law No. 12/2015, of June 17 – Basic Law of Financial Institutions.

I DETERMINE:

Article 1st (Object) This Notice establishes the rules and procedures to be observed in the commercialization of financial products and services.

Article 2nd (Scope) This Notice is applicable to Financial Institutions under the supervision of the Bank of Angola, under the terms and conditions provided in the Basic Law of Financial Institutions, hereinafter abbreviated as Institutions.

Article 3rd (Nature of Ethical Rules)

1. In accordance with Article 75th of the Basic Law of Financial Institutions, the code of conduct drafted by the Institutions or by the entities representing them must be submitted to the Bank of Angola.
2. The code of conduct established within the organizational structure of the Institutions is an integral part of the internal norms system to be respected by all its employees and constitutes a disciplinary element of their activity.
3. The code of conduct of the Institutions must contemplate and systematize values, principles of action, and norms of ethical and professional conduct, as well as infractions and applicable sanctioning procedures.
4. Observance of the code of conduct rules does not exempt the employees of the Institutions from knowing and complying with the remaining internal norms and applicable legal and regulatory provisions.

Article 4th (Conduct Rules) Institutions, in their relations with clients, must observe the following conduct rules: a) act with competence, diligence, prudence, and good faith, so as not to defraud the client deliberately, negligently, imprudently, abusively, coercively, or through misleading advertising; b) respect the client's right to choose and change products or services, as well as the Institution, taking into account the contractual conditions; c) obtain relevant and necessary information from the client to assess their capacity to fulfill obligations related to the requested products and services; d) inform in writing, clearly and understandably, of the rates, commissions, and other charges levied on operations; e) ensure that the client's personal data, as well as their operations, are not used for other purposes, except for the fulfillment of client instructions and norms emanating from the Bank of Angola or when there is another legal provision that expressly limits the duty of secrecy; f) enable the client to access adequate and functional complaint mechanisms for the diligent resolution of conflicts, implementing, notably, the procedures set forth in Article 20th of this Notice; g) use adequate, effective resources, procedures, systems, and controls that ensure compliance with this and other current norms.

Article 5th (Discrimination and Equal Treatment)

1. In accordance with Article 23rd of the Constitution of the Republic of Angola, employees of the Institutions must not practice any type of discrimination in the relationship with the banking consumer, based on criteria such as race, gender, disability, impairment, sexual preference, political or ideological convictions, religion, education, marital status, and others, except for commercial practices of segmentation of certain financial products or services.
2. In accordance with Article 71st of the Basic Law of Financial Institutions, employees of the Institutions must act with courtesy, tolerance, and respect, abstaining from any behavior that may be considered offensive.

Article 6th (Prevalence of Client Interests) Members of the governing bodies and other employees of the Institutions, in the execution of requests and instructions received from clients, must ensure the fulfillment of these and the interests of the clients.

Article 7th (Information to Clients)

1. Employees of the Institutions must provide clients with the clarifications and information necessary for making informed decisions regarding financial products and services they intend to commercialize, as well as any risks and consequences that may be incurred with their contracting.
2. Employees of the Institutions must promptly inform clients about: a) the execution and results of operations carried out on their order; b) the occurrence of technical or operational constraints; c) any facts or circumstances of which they become aware, not subject to the duty of secrecy and capable of justifying the review, alteration, or revocation of the corresponding orders, when applicable.

Article 8th (Identification of Employees)

1. Institutions must provide for the institutionalization of identification badges for all their employees, with mandatory permanent use inside their facilities, regardless of hierarchical position.
2. For the purposes of the preceding paragraph, identification badges must be worn at chest height and perfectly visible to third parties.
3. Identification badges must contain, at a minimum, the following identifying elements: a) full name; b) photograph; and c) function.

Article 9th (Service Quality)

1. Institutions must provide their clients with quality service, based on best banking and financial practices, as well as on the knowledge they hold of clients at the level of the business relationship.
2. Responses to client requests must be guided by speed and courtesy in service provision, by good commercial and operational performance, and by the careful adequacy of products and available technical means, in order to provide excellent levels of satisfaction.

Article 10th (Protection of Personal Data) Employees of the Institutions must strictly respect legal norms and the guidelines of competent authorities regarding the protection of clients' personal data, stored in their respective databases.

Article 11th (Duty of Secrecy)

1. Members of the administration or supervision bodies of the Institutions, their employees, agents, or other entities that provide them with services on a permanent or occasional basis, must not reveal or use information about facts or elements regarding clients that come exclusively from the exercise of their functions or the provision of their services.
2. The duty of secrecy does not cease with the end of functions or services.
3. Facts or elements of the client's relationship with the Institution may only be revealed with the written authorization of the client to the Institution, specifying the recipient of the information, the reason, and the duration thereof.
4. Without prejudice to the cases provided for in the preceding paragraphs, facts and elements covered by the duty of secrecy may only be revealed: a) to the Bank of Angola, within the scope of its attributions; b) for the instruction of proceedings by order of the Judge of Law or the Public Prosecutor; c) to the Financial Information Unit, within the scope of combating and preventing money laundering and terrorist financing; d) when there is another legal provision that expressly limits the duty of secrecy.
5. In accordance with Article 79th of the Basic Law of Financial Institutions, within the scope of cooperation with other entities, the Bank of Angola may exchange confidential information regarding the clients of the Institutions.

Article 12th (Operating Rules) Institutions must make every effort to ensure that during the normal operating period, except for force majeure reasons, none of their activities or functions remain inaccessible, inactive, or with significantly reduced response capacity.

Article 13th (Collection of Personal Information)

1. Institutions should only collect information necessary for the offer of their products and services, maintenance of accounts, assessment of payment capacity, execution of client instructions in observance of the "Know Your Customer" principle.
2. Institutions must not collect information from clients related to their physical characteristics, political, and religious convictions.

Article 14th (Information Security)

1. Institutions must implement and maintain information security policies in their internal regulations regarding accounts, contracting of operations, and provision of services to clients, regardless of the computer system used, in order to ensure: a) restricted access to authorized employees; b) clearly defined access levels, according to the category of employees who may access, modify, and/or destroy the information; c) historical records that allow identifying who had access to and/or modified the information.

Article 15th (Notification of Unauthorized Access) Institutions must inform the client, by letter, telephone, text message, email, among others, whenever there is movement in their accounts.

Article 16th (Opening Hours)

1. Institutions must post the public service hours in a visible location of the establishment.
2. If Institutions are authorized to operate outside normal business days and hours, they must inform the Bank of Angola.

Article 17th (Priority Service)

1. Institutions must guarantee priority service to persons with physical disabilities, or with reduced mobility, temporary or definitive, elderly people, pregnant women, nursing mothers, and people accompanied by infants, through the creation of: a) adequate mechanisms for priority service; b) infrastructure that facilitates access to agencies, service counters, and automated teller machines; c) appropriate structures for service to visually and hearing-impaired persons.
2. Institutions must ensure the following public service conditions: a) signage, with description of the priority service available; b) efficient queue management system for service, including priority, notably through the implementation of preferential tickets or specific counters for service to persons with special needs; c) training of employees aimed at adopting mechanisms that allow exposing the terms and conditions of marketed financial products and services, through clear and simple speech, which allows adequate service to persons with special needs, including visual and hearing impairments.

Article 18th (Security and Surveillance) For the protection of consumers, Institutions must guarantee compliance with the conditions provided in Notice No. 11/2016, regarding the opening and closing of agencies and premises, concerning the security and surveillance of their establishments.

Article 19th (Handling of Complaints)

1. Institutions must create in their organizational structure a specialized area for customer service, with the objective of ensuring: a) the reception of complaints, in person, during normal business hours and through online platforms, permanently; b) the prompt resolution of complaints, in accordance with Article 22nd of this Notice; c) information to clients about the progress of the process and the results of the complaints they present.
2. The specialized area for customer service provided for in the preceding paragraph must be compatible with the nature and complexity of the products, services, activities, processes, and systems of each Institution, and must be separate from the Institution's internal audit function.
3. Institutions that are part of a group may establish a specialized service area, which will act on behalf of all Institutions integrated into the group.
4. Policies and procedures regarding complaint management must be recorded in a written document, defined and approved by the administration body and made available to all employees of the Institution through an adequate internal dissemination medium, taking into account the following aspects: a) ensure the adequacy of human, material, technological, and organizational resources to achieve the above-mentioned objectives and others that Institutions may determine; b) receive, analyze, investigate, and respond to all complaints lodged by their clients within the deadlines established in this Notice and maintain a complaint control system and its respective statistics; and c) ensure that statistical information on complaints is reported periodically to their Board of Directors and to the Bank of Angola according to the model fixed by Directive No. 01/DRO/DSC/2016, of April 18, on statistical reporting of complaints by Financial Institutions.

Article 20th (Telephone Service) Institutions must provide free telephone access, the number of which must be: a) disclosed and kept updated in a visible location and format to the public inside their facilities, as well as on the website and in other communication channels used to disclose their products and services; b) registered in statements, receipts, including electronic ones, contracts formalized with clients, advertising materials, and other documents intended for clients of their products and services.

Article 21st (Disclosure of Information)

1. Institutions must disclose in their agencies, premises, and establishments where their products and services are commercialized and on their website, information about the existence of a complaint handling area in a visible and easily accessible location to the public, notably telephone contacts and email address.
2. Institutions must disclose complete information regarding the purpose and method of use of the complaint handling area.
3. The disclosure provided for in the preceding paragraphs must be made available through the communication channels used for the disclosure of the Institution's products and services.

Article 22nd (Complaint Procedures) Without prejudice to the provisions of Instruction No. 6/2012, of September 18, of the Bank of Angola, regarding the terms, conditions, and procedures for handling complaints, Institutions must establish the following procedures: a) receive complaints from clients or their legal representatives, in writing, electronically, by telephone, or in another format that respects the provision of item f) of Article 4th of this Notice; b) request from the complainant the date, the agency/establishment, the reason, and the period to which it refers, as well as other elements considered relevant; c) assign a reference number to the complaint, in writing, respecting a numerical sequence for future tracking; d) provide necessary clarifications and inform the complainant about the developments of the process and the measures adopted; e) generate at least 2 (two) copies of the original complaint, to be distributed by the complainant and by the Institution itself; f) notify the complainant of the receipt of the complaint, in writing, about the applicable norms and their complaint resolution policy, including the resolution deadline, as well as the possibility of appealing to the Bank of Angola in accordance with Article 27th of this Notice; g) propose to the board of directors corrective measures or improvements to procedures resulting from the analysis of received complaints; h) prepare and send to internal audit and the board of directors the report provided for in paragraph 2 of Article 26th of this Notice.

Article 23rd (Resolution Deadline)

1. Complaints involving only one Institution must be resolved within 20 (twenty) days from the date of receipt of the complaint.
2. In the case of complaints involving two or more Institutions established in Angola, the Institution that is investigating must, within 30 (thirty) days from the date of receipt of the complaint, present the conclusion of the investigation.
3. In the case of complaints involving one or more Institutions not established in Angola, the Institution that is investigating must, within 60 (sixty) days from the receipt of the complaint, present the investigation report.
4. The Institution involved in the complaint must, within 10 (ten) days from the notification of the Institution responsible for the investigation, attend to the request of other Institutions and investigate or provide information related to specific transactions or services related to the investigation.
5. Institutions are prohibited from charging any fees, commissions, and other expenses related to complaint procedures.

Article 24th (Notification of Result)

1. Institutions must respond to the client, in writing, regarding the result of the investigation.
2. The notification provided for in the preceding paragraph must contain, at a minimum, the following elements: a) reference number of the complaint; b) date on which the complaint was presented; c) result of the investigation and its justification.
3. In cases where, after the conclusion of the complaint investigation, the Institution recognizes that it carried out operations considered improper, it must immediately proceed with their regularization and communication to the client.

Article 25th (Mentions in Statutes)

1. The statute or partnership agreement of the Institutions must contain, expressly, among others, the following elements: a) the attributions of the specialized area for customer service; b) the criteria for appointment and dismissal of the person responsible for the specialized area for customer service; c) the express commitment of the Institution to: i. create adequate conditions for the functioning of the specialized area for customer service, as well as for its action to be guided by transparency, independence, impartiality, and fairness; ii. ensure access of the specialized area for customer service to the information necessary for the preparation of adequate responses to received complaints.
2. The provision in the preceding paragraph must be included in the statute or partnership agreement of the Institution in the first amendment that takes place after the creation of the specialized area for customer service.
3. Statutory or contractual alterations required by this Notice to Institutions that opt for the faculty provided for in paragraph 4 of Article 19th may only be carried out by the Institution responsible for the specialized area for customer service.

Article 26th (Person Responsible for the Specialized Area for Customer Service)

1. Institutions must designate to the Bank of Angola the name of the person responsible for the specialized area for customer service.
2. The person responsible for the specialized area for customer service must prepare a semi-annual report, on June 30 and December 31, quantitative and qualitative, regarding the action of the specialized area for customer service, containing the proposals outlined in item g) of Article 22nd of this Notice.
3. The report mentioned in the preceding paragraph must be reviewed by the internal audit function of the Institution, which must pronounce itself on the quality and adequacy of the structure, systems, and procedures of the specialized area for customer service.
4. The report mentioned in the preceding paragraphs must be available to the Bank of Angola for a minimum period of 5 (five) years at the headquarters of the Institution.

Article 27th (Complaints to the Bank of Angola) The complainant may present a complaint directly to the Bank of Angola, dispensing with the precedence of complaint with the Institution where the fact generating the complaint occurred.

Article 28th (Responsibility of Institutions)

1. Institutions are responsible for damages caused to consumers of their products and services resulting from the violation of this Notice, regardless of whether these were caused by the Institution or by its banking correspondent.
2. Institutions do not charge any commission or expense to clients in situations where they are responsible for damages resulting from the execution of a confirmed operation when there is: a) error in the execution of a payment order, resulting from technical or operational failures of the electronic funds transfer system that prevented the execution of the transaction already accepted by a terminal; b) error in the registration or accounting of an operation; c) destruction of facilities and equipment due to causes attributable to the Institution, which results in loss for the client.

Article 29th (Shared Systems) As an integral part of the funds transfer system and interbank services, Institutions must not neglect their obligations and responsibilities regarding the rights of clients provided for in this Notice and other legislation, even if the fault is attributable to another Institution.

Article 30th (Transitional Provision) Institutions must be in compliance with the provisions of this Notice within 30 (thirty) days after the date of its publication.

Article 31st (Sanctions) The non-compliance with the imperative norms established in this Notice constitutes a misdemeanor punishable under the terms of the Basic Law of Financial Institutions.

Article 32nd (Revocation) Notice No. 02/2011, of June 1, and Notice No. 05/2012, of March 29, are revoked.

Article 33rd (Doubts and Omissions) Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the Bank of Angola.

Article 34th (Entry into Force) The present Notice enters into force on the date of its publication.