Press Release No. : 07/2024
Date : 29 March 2024
Press Release No 07 – Reserve Bank of Fiji Approves New Policies for Financial Consumers & Culture and Conduct Risk
Financial Systems Development Policy Statement No.3 for the Protection and Fair Treatment of Financial Consumers (FSDPS 3) – Effective 01 April, 2024
The Reserve Bank of Fiji (RBF) board in its February meeting approved the issuance of the Financial Systems Development Policy Statement No.3 (FSDPS 3) for the Protection and Fair Treatment of Financial Consumers. The Policy sets the minimum requirements for financial service providers (FSPs) on the standards of fair practice in the delivery of their services and product offerings, so consumers can make informed financial decisions.
Following extensive consultations with relevant stakeholders, FSDPS 3 will be the first policy of its kind to be implemented in the region. FSDPS 3 applies to all financial institutions licensed and supervised by the RBF. A 12-month transition period is allowed under the Policy, during which FSPs can progressively adopt the policy and its guidelines.
Prudential Supervision Policy Statement No.3 on Minimum Requirements for the Management of Culture and Conduct Risk for Supervised Entities (PSPS 3) – Effective 01 April, 2024
Complementing FSDPS 3, the RBF Board had earlier approved the policy on the management of culture and conduct risk for all licensed entities. The effective date of PSPS3 is also 01 April 2024 with full compliance required within 12 months from its effective date. The policy outlines requirements for supervised entities including the following objectives:
- enhancing clarity in individual accountability for specific roles and responsibilities of senior management;
- ensuring that the board and senior management play a lead role in establishing culture and behavioural standards that promote prudent risk-taking and fair treatment of customers; and
- ensuring the establishment of policies and processes to promote sound risk culture and address conduct risk within the supervised entities.
RBF Governor Ariff Ali said that “consumer empowerment and market conduct share a symbiotic relationship, each influencing the other in significant ways. When consumers have the right knowledge and skills, are confident to make informed choices and understand their rights, they can critically evaluate products and services, demand transparency, and drive market players to adopt ethical conduct. Informed consumers demand ethical behaviour, which, in turn, reinforces consumer empowerment.
It is important that the tone for good conduct within each supervised entity is appropriately set from the top and therefore the board of directors or its equivalent, is ultimately responsible for promoting a sound organisational and risk culture within the entity, to minimise the event of misconduct by senior management and all employees of the supervised entity.
Furthermore, the lack of accountability for misconduct is a key cultural driver of misconduct as such, requiring a clear senior management individual accountability regime by way of holding senior management accountable in discharging their responsibilities will certainly help to address issues of misconduct and imprudent risk taking”.
The policies are also part of the policy commitment by Government in the current fiscal year, to implement key reforms that will strengthen the stability and further development of the financial sector.
To view the RBF financial sector development policies, please click here:-
Development Policies – Reserve Bank of Fiji (rbf.gov.fj)
To view the RBF supervision policies, please click here:-
Supervision Policies – Reserve Bank of Fiji (rbf.gov.fj)
To view Prudential Supervision Policy Statement No: 3: Minimum Requirements for the Management of Culture and Conduct Risk for Supervised Entities. Please Click Here
To view the guidelines please click here:-
FSDPS 3 Policy on Protection and Fair Treatment of Financial Consumers
All Guidelines (Compressed Zip Folder):
Guidelines Issued Under FSDPS 3
RESERVE BANK OF FIJI
For further details, please contact:-
Communications Office:
Telephone: (679) 3223 381 Email: info@rbf.gov.fj
Mr Mervin Singh – Manager Corporate Communications:
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj