AS PART of efforts to streamline the financial sector in the country, Autoriti Monetari Brunei Darussalam (AMBD) has instructed all financial institutions to exhibit greater disclosure and transparency of the financial products and services they offer.
In a notice issued recently to improve market conduct, the monetary regulator also requested financial institutions to provide fair treatment to financial consumers and undertake appropriate actions to address identified deficiencies in controls or provision of financial products.
The notice (No: FCIU/N2/2017/1) will be effective from January 1, 2018.
The introduction of this notice is part of AMBD’s continuous effort to strengthen financial consumer protection by promoting better understanding of the products and services offered by financial institutions among consumers.
This will help consumers make informed financial decisions and in turn, increase their trust and confidence in dealing with financial institutions.
According to this notice, financial institutions are required to ensure that their customers have an accurate and holistic understanding of their products and services. This includes providing customers with ready access to information that accurately represents the nature and structure of the product or service, its terms and conditions as well as its fundamental benefits and risks.
Financial institutions’ staff or representatives should also be sufficiently trained to disclose information in a transparent manner. In addition, advertisements and promotional materials of the financial products offered should not make false, misleading, or deceptive statements that may materially and/or adversely affect a customer’s decision making.
In the event that a financial institution identifies any deficiencies in the controls or provision of their financial products, the remedial actions include moderating, withdrawing, and/or providing refund for prohibited fees and charges, rectifying and resolving potential violations due to mis-selling practices and modifying or withdrawing misleading advertisements. For any inquiries or further information, members of the public may contact AMBD at 2388388, or through email info@ambd.gov.bn.
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