CISI UAE FRR Consumer Protection in Financial Services 3

Question 1

The CBUAE's conduct requirements prohibit bank staff from:

Accepted Answer

Mis-selling products that are unsuitable for a customer's stated needs

Answer

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:

Accepted Answer

Monthly, with clear itemisation of transactions and charges

Answer

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:

Accepted Answer

Publicly available and easily accessible to customers

Answer

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?

Accepted Answer

Repeatedly recommending product switches to generate commission without benefit to the customer

Answer

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:

Accepted Answer

Defined timeframes specified by the regulator (typically within 15-30 business days for straightforward claims)

Answer

UAE insurance regulations specify timeframes within which insurers must assess and settle valid claims, preventing unreasonable delays that cause hardship to claimants.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR Consumer Protection in Financial Services 3