General Principles for Financial Consumer Protection

PRINCIPLE 1

Equitable and fair treatment

Banks should deal fairly and honestly with consumers at all stages of their relationship, so that it is an integral part of the culture of a bank. Care should also be made and special attention given to older people and those with special needs of both sexes.

PRINCIPLE 2

Disclosure and transparency

Banks shouldupdate information aboutproducts and servicesprovided to consumers, sothattheyareclearandconcise, easy to understand, accurate, notmisleading, and can easily access this informationwithout unnecessary inconvenience, especially the key terms and features.

PRINCIPLE 3

Financial education and awareness

Banks should develop programmes and appropriate mechanisms to help existing and future consumers develop the knowledge, skills and confidence to appropriately understand risks, including financial risks and opportunities, make informed choices, know where to go for assistance when they need it.

PRINCIPLE 4

Behaviour and work ethic

Banks should work in a professional manner for the benefit of clients during their relationship, where a bank is primarily responsible for the protection of the financial interests of the client.

PRINCIPLE 5

Protection against fraud

Banks should protect and monitor consumer deposits and savings and other similar financial assets through the development of control systems with a high level of efficiency and effectiveness to reduce fraud, embezzlement or misuse.

PRINCIPLE 6

Protection of privacy

Consumers’ financial and personal information should be protected through appropriate control and protection mechanisms. These mechanisms should define the purposes for which the data may be collected, processed, held, used and disclosed (especially to third parties).

PRINCIPLE 7

Complaints handling

Consumers should have access to adequate complaints handling mechanisms that are accessible, affordable, independent, fair, accountable, timely and efficient and based on SAMA rules.

PRINCIPLE 8

Competition

Consumers should be able to search, compare and where appropriate, switch between products, services and providers easily and clearly at a reasonable cost.

PRINCIPLE 9

Third parties

Banks and their authorised agents should have as an objective, to work in the best interest of their consumers and be responsible for upholding financial consumer protection. Banks should also be responsible and accountable for the actions of their authorised agents.

PRINCIPLE 10

Conflict of interest

Banks must have a written policy on conflict of interest, and ensure that this policy will help to detect potential conflicts of interest. When the possibility of a conflict of interest arises between the bank and the third party , this should be disclosed to the consumer.