The Central Bank of the UAE (CBUAE) has imposed a financial sanction of Dh600,000 on an unnamed finance company for failing to comply with market conduct and consumer protection regulations.

The fine was issued under Article (137) of Decretal Federal Law No. (14) of 2018 concerning the Central Bank and the Organisation of Financial Institutions and Activities, along with its amendments.

According to a statement from the apex bank, the penalty follows investigations that revealed non-compliance by the finance company with regulations and standards related to market behaviour and consumer rights.

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The Central Bank stressed its commitment to maintaining transparency and integrity across the financial services sector. Through its supervisory and regulatory mandates, the CBUAE endeavours to ensure that all finance companies and their staff adhere to UAE laws, regulations, and standards, the statement read.

One of the Central Bank's objectives is to establish Regulations and Standards for protection of Consumers of Licensed Financial Institutions.

This regulation is intended to ensure protection of consumers' interests in their use of any financial product and/or service or relationship with licensed financial institutions.

By introducing this regulation, the Central Bank ensures that the financial institutions' approach to consumer protection is in line with international standards.

The protection of consumers includes:

• Setting standards of Business and Market conduct by Licensed Financial Institutions.

• Strengthening the governance and oversight over the design, promotion and sale of Financial Products and/or Services;

• Promoting responsible financing practices to protect consumers from becoming over indebted;

• Ensuring the quality and timing of effective disclosure to consumers by Licensed Financial Institutions regarding matters and/or risks that may affect a Consumer's decision to purchase a Financial Product and/or Service;

• Providing Consumers with the access to the right information at the right time to provide the Consumer the opportunity to make informed decisions;

• Addressing unreasonable barriers and limits to fair competition and Consumer choice;

• Implementing clear and reasonable mechanisms by Licensed Financial Institutions for redress of Consumer Complaints;

• Improving Consumers' knowledge, awareness and ability to assess Financial Products and/or Services; and

• Promoting inclusions for all segments of society by eliminating unreasonable barriers or practices that limit access to Financial Products and/or Services.

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