Ethiopia: Financial Consumer Protection (Directive No. FCP/01/2020) including fair marketing and advertising practice requirement entered into force

On 25 February 2021, the Financial Consumer Protection Directive No. FCP/01/2020 entered into force. 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.