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The Saudi Central Bank (SAMA) issued rules for advertising products and services provided by financial institutions.
As per a circular issued today, March 5, by SAMA Deputy Governor for Supervision Yazeed AlSheikh all financial institutions are duly required to comply with the issued rules and complete the necessary procedures, in accordance with the applicable policies and procedures.
The controls aim to set up a regulatory framework and define the minimum standards and procedures required for financial institutions advertising for products.
This step is also meant to protect financial institutions’ customers, raise their confidence, as well as enhance principles of disclosure and transparency.
Within a 60-day period, as of the circular date, financial institutions are required to develop and ensure adequate execution of advertisement policies compatible with the new controls, regulations and instructions issued by SAMA and the competent authorities.
Moreover, they shall update the respective policies whenever necessary, at least once every three years.
In December 2022, SAMA invited the public to send their feedback on “rules for advertising products and services provided by financial institutions via “Istitlaa” platform, Argaam earlier reported.
Financial institutions are prohibited from advertising illegal products or services, using SAMA’s emblem, presenting an advertisement that leads to a kind of confusion with other products, services or names, violating public order and morals, offending social values and customs, and/or making reference to racial discrimination, sectarian excitement by any means.
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