Ethiopia: National Bank issued Financial Consumer Protection (Directive No. FCP/01/2020) including fair marketing and advertising practice requirement

On 25 August 2020, the National Bank of Ethiopia (NBE) issued the Financial Consumer Protection Directive No. FCP/01/2020 and it enters into force with a grace period. The directive shall be effective and in full force six months from the issue date. The directive mandates Financial services providers to ensure all advertising or promotional materials related to financial products and services are accurate, simple, clearly expressed, and not misleading or deceptive. If any advantages or benefits of the financial product or service are mentioned, the risks must also be appropriately balanced and referenced. The materials must specify the name, licence, and registration number of the provider. If any interest rate is referenced, it must be disclosed as an annual percentage rate (APR), not a rate for a shorter period. Additionally, any other fees and costs must be disclosed.