CBN’s New Directive: Banks Barred From Using Unaudited Accounts In Ads

CBN’s New Directive: Banks Barred From Using Unaudited Accounts In Ads

In a bid to enhance transparency and consumer protection in the financial sector, the Central Bank of Nigeria (CBN) has issued a directive prohibiting banks and financial service providers from referencing unaudited accounts in their advertising campaigns….READ MORE CBN Governor Predicts Inflation Dip: Nigeria’s Rate Set To Plummet To 21% In 2024

Under the recently revised consumer protection framework, the CBN mandates financial institutions to adhere to minimum standards in their promotional materials.

One key requirement is the exclusion of unaudited financial statements from sales promotions. Unaudited statements, which lack external audit verification for accuracy, pose potential risks to consumers.

Additionally, the directive emphasizes the disclosure of contact details, regulatory authority, and full cost transparency, including fees and associated charges. Moreover, advertisements should refrain from mentioning competitors’ names or making misleading comparisons.

The CBN emphasized the importance of factual, clear, and non-misleading advertising content, stressing that promotions should not downplay risks while focusing solely on benefits. Unsolicited advertisements must be free for consumers, and opt-in for promotional materials should not be a prerequisite for accessing products.

Furthermore, financial service providers are required to periodically evaluate the competence and conduct of their employees to ensure consumer satisfaction and safety.

As the financial industry undergoes rapid transformation with technological advancements, the CBN recognizes the need to address emerging challenges and risks while promoting consumer-friendly practices.

The revised framework aims to establish a safe and trustworthy environment for financial services, fostering consumer confidence through transparent and ethical practices.