The Financial Consumer Protection Guidelines (FCPGs) were issued by Bank of Uganda in June 2011 to all supervised financial institutions (SFIs; commercial banks, credit institutions and microfinance deposit-taking institutions). The Guidelines have the following objectives:
- To promote fair and equitable financial services practices by setting minimum standards for financial services providers in dealing with consumers.
- To increase transparency in order to inform and empower consumers of financial services.
- To foster confidence in the financial services sector.
- To provide efficient and effective mechanisms for handling consumer complaints relating to the provision of financial products and services.
Following the issuing of the Guidelines, the Bank of Uganda, in partnership with SFIs and consumer organisations, has embarked upon a three-pronged approach to achieving these objectives:
- Raising the awareness of consumers.
- Strengthening Bank of Uganda’s supervisory techniques to ensure compliance by the SFIs.
- Working with SFIs to ensure there is a clear understanding of what is required under the FCPGs.
Key elements under this pillar include:
- Development of Key Facts Documents for savings and loans products
- Delivery of training for SFIs on the implementation of the FCPGs.
- Strengthening of complaints handling procedures.
- Development of a communications strategy for SFIs, clients and the wider public to raise awareness of the FCPGs (“Know your Rights”).
- Strengthening of BOU supervision of compliance with the financial consumer protection requirements.
- Harmonisation of financial consumer protection requirements across the broader financial sector.