New regulatory framework to safeguard banking, finance customers

MUSCAT: The Central Bank of Oman (CBO) has issued the Financial Consumer Protection Regulatory Framework for licensed banks, as well as Finance and Leasing Companies (FLCs), in the Sultanate of Oman.

This framework is in line with the Central Bank’s comprehensive strategy to protect customers and contribute to economic growth and financial inclusion.

The framework aims to ensure consumer access to financial services and build consumer confidence in the sector, thus creating healthy competitive financial markets and adopting the best international practices to protect the financial consumers. The framework ensures fair delivery of financial products and services to consumers, as well as curbing poor business conduct and ineffective dispute resolution mechanisms. The ultimate goal is to increase and maintain consumer confidence and trust in the financial system, which in turn is necessary for healthy economic growth.

The Financial Consumer Protection Regulatory Framework is based on five key principles:

• Disclosure and transparency: It covers requirements for the format and manner of disclosure, advertising and sales materials, the disclosure of terms and conditions, product risk, conflicts of interest, key fact statements, contract notes, statements, and notification of changes in rates, terms and conditions.

• Fair treatment and business conduct: It covers unfair terms and conditions, unfair practices, sales practices, product suitability and appropriateness and responsible financing.

• Data protection and privacy: This pillar covers lawful collection and usage of customer data, confidentiality and security of customers’ information and sharing customer information, organisational arrangements and reporting requirements.

• Dispute resolution mechanisms: It covers the internal complaints handling mechanism.

• Financial education and financial capability: This covers requirements for strengthening customer awareness, financial education and financial capability. (With inputs from ONA)