CISI UAE FRR Consumer Protection in Financial Services 3 — Questions and Answers
Question 1: The CBUAE's conduct requirements prohibit bank staff from:
- Mis-selling products that are unsuitable for a customer's stated needs (Correct answer)
- Refusing to provide services in Arabic
- Offering English-language documentation
- Charging for advice services
Correct answer: Mis-selling products that are unsuitable for a customer's stated needs
Mis-selling — recommending products that are not suitable for the customer's circumstances, needs, and risk tolerance — is a serious conduct breach prohibited by CBUAE consumer protection regulations.
Question 2: Under UAE regulations, banks must provide credit card statements:
- Monthly, with clear itemisation of transactions and charges (Correct answer)
- Only on customer request
- Annually
- Quarterly
Correct answer: Monthly, with clear itemisation of transactions and charges
Banks must provide monthly credit card statements showing all transactions, fees, interest charges, minimum payment, and payment due date, enabling customers to track spending and manage repayments.
Question 3: The CBUAE requires banks to make their schedules of charges:
- Publicly available and easily accessible to customers (Correct answer)
- Disclosed only on request
- Available exclusively in Arabic
- Known only to relationship managers
Correct answer: Publicly available and easily accessible to customers
Banks must publish and prominently display their schedules of charges — all fees applicable to products and services — so customers can make informed comparisons and understand the full cost of banking.
Question 4: What is 'churning' in the context of UAE financial services misconduct?
- Repeatedly recommending product switches to generate commission without benefit to the customer (Correct answer)
- Transferring customer accounts between branches
- Frequent refinancing of business loans
- Rotating staff between front and back office roles
Correct answer: Repeatedly recommending product switches to generate commission without benefit to the customer
Churning involves advisers repeatedly recommending product switches primarily to generate commissions or fees for themselves, without genuine benefit to the customer, and is a prohibited conduct practice.
Question 5: Under UAE insurance consumer protection rules, insurers must settle valid claims within:
- Defined timeframes specified by the regulator (typically within 15-30 business days for straightforward claims) (Correct answer)
- 5 years of the claim being submitted
- No defined timeframe — at the insurer's discretion
- Only after litigation is completed
Correct answer: Defined timeframes specified by the regulator (typically within 15-30 business days for straightforward claims)
UAE insurance regulations specify timeframes within which insurers must assess and settle valid claims, preventing unreasonable delays that cause hardship to claimants.
Question 6: The 'right to be forgotten' in the UAE credit bureau context allows customers to:
- Request removal of negative credit information after legally specified periods (Correct answer)
- Delete all their credit bureau records at any time
- Prevent banks from accessing their credit file
- Remove accurate positive information from their records
Correct answer: Request removal of negative credit information after legally specified periods
Under UAE credit bureau regulations, negative credit information (such as defaults) must be removed from credit files after legally specified retention periods, giving reformed borrowers a fresh start.
CISI UAE FRR Consumer Protection in Financial Services 3
The CBUAE's conduct requirements prohibit bank staff from: