One of the requirements is that FSPs should not make
reference to unaudited financial statements in their sales promotion.
Unaudited financial statements are financial reports that
have not been examined and verified for accuracy and completeness by an
external independent auditor.
Other requirements include disclosing contact details and
its regulatory authority; disclosing cost of products, including all fees and
other associated charges; the nature and value of benefits, where an
advertisement refers to, or is linked to other value-adding benefits and
avoiding mentioning the names of or making comparisons with competitors.
CBN noted that “the content of advertisements shall be
factual, unambiguous, not offensive,
Misleading, deceptive, or likely to cause damage.
The document stated, “Promotional materials must not focus
on benefits and downplay risks, unsolicited advertisements should be free for
consumers.
“The service providers must honour obligations in sales
promotions as advertised and offered; not make opt-in for promotional materials
a prerequisite for onboarding consumers to products.
“They must stablish a process to periodically evaluate the
competence and conduct of employees.
“The financial services industry has undergone significant
transformation with evolving market trends, proliferation and widespread
adoption of technology in the delivery of a broad range of financial products
and services through digital channels.”
The apex bank said while these changes had provided enhanced
consumer choices, convenience, and accessibility, they had also exposed
consumers to new challenges and risks.
The apex bank added that the objective of the revised
document is to promote a safe, trustworthy and consumer-friendly financial
services environment by promoting transparency and disclosure through the
provision of accurate and clear information to consumers on time.
It also serves to protect consumers from unethical and
predatory practices that undermine confidence in the use of financial products
and services, CBN noted.
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