The Central Bank is to introduce Regulations on Financial Consumer Protection having recognized the need to institutionalize financial consumer protection in the delivery of services by regulated financial institutions.
The Central Bank’s Financial Consumer Relations Department (FCRD_ has devised a comprehensive set of new regulations aiming at introducing an integrated financial consumer protection framework for entities regulated by CBSL.
These regulations are expected to define specific regulatory powers for the supervisors to facilitate market conduct supervision while providing clarity to both the service providers and recipients on the areas to be considered in delivering/ obtaining financial services aiming at minimizing the need for financial consumers to make subsequent complaints.
In order to have wider stakeholder consultation, FCRD has invited the relevant industry associations and the general public to submit their observations/ comments/ suggestions on the draft Regulations.
The public can access the draft Regulations (English) available on the CBSL website (Web link for the draft Regulation. consultation_paper_20230120_regulations_on_financial_consumer_protection_e.pdf (cbsl.gov.lk))
With a view to safeguard financial consumers, FCRD shall carry out risk-based market conduct supervision, depending on the nature, scale and complexity of the matter under consideration and/ or the market.
A report on Market Conduct Supervision shall be furnished to the DFCRD after the examination(s) is/are completed.
In the opinion of the DFCRD, if the examination findings are adverse and contain any material violations of FCP regulations or any other directions, guidelines, or code of conduct, such report shall be submitted to the Monetary Board recommending one or more of the regulatory actions
According to these regulations all financial institutions should treat customers in an equitable and fair manner.
It should not not discriminate against financial consumers based on social status, physical ability,marital status, race, caste, gender, age or religion;
It should not discriminate against financial consumers such as elderly, physically disabled, low income, low financial literacy and shall have the right to receive special attention to facilitate fair access to financial products or services.
The FSP or its agent/ any other person involved in the business of such FSP shall not employ unfair business practices against its financial consumers at all times.
The FSP shall not engage in practices which may include but are not limited to threats, intimidation, humiliation, misrepresentation, deception, use of abusive/ offensive language, or unfair inducements.
At all times, in the conduct of its business, financial institutions should act in good faith and the best interest of its customers.
