Consultation on Financial Consumer Protection Regulatory Framework Development for Papua New Guinea
Bank of Papua New Guinea (the Bank) wishes to inform the public that consistent with the Government objective enshrined in the National Financial Inclusion Policy that “all Papua New Guineans are financially competent and have access to a wide range of financial services that address their needs and are provided in a reasonable and sustainable manner”, the Bank is developing a comprehensive Financial Consumer Protection (FCP) Framework.
An assessment of the FCP Framework and industry practice in PNG by International Finance Corporation (IFC) identified that the regulatory framework is limited, with significant gaps as compared to international best practices. It recommended for a FCP Regulatory Framework to be developed under the Banks and Financial Institutions Act, 2000 to establish a fair and equitable treatment of consumers of financial products and services.
The Regulatory Framework will cover all Financial Institutions licensed and supervised by the Bank in respect of the financial products and services provided to consumers for either personal or business purposes.
The FCP Regulatory Framework will be established consistent with the internationally accepted financial consumer protection principles: (1) treat consumers fairly, (2) disclosure and transparency (3) product suitability (4) responsible lending (5) data protections and (6) consumer recourse.
A draft Financial Consumer Protection Regulation is available for consultation and comments here (https://www.bankpng.gov.pg/draft-fcpr/)
As part of the stakeholder consultation process the Bank invites individuals and institutions to provide submissions regarding their comments on Financial Consumer Protection Regulation on or before 31st March 2019. Any submissions on issues outlined in the Regulations should be sent to FCP Project Team, Financial Systems Stability Group, PO Box 121 Port Moresby, National Capital District or email to Anil Paul firstname.lastname@example.org.
The Feedback from stakeholders as part of these consultations is then used to finalise Financial Consumer Protection Regulatory Framework.
Authorised by: Loi M. Bakani CMG
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