[25th April 2022] Supplement to Official Gazette 65

FINANCIAL CONSUMER PROTECTION ACT, 2022

(Act 6 of 2022)
ARRANGEMENT OF SECTIONS
SECTIONS
PART I - PRELIMINARY
1. Short title and commencement
2. Application
3. Interpretation

PART II - REGULATION BY THE COMPETENT AUTHORITIES

4. Regulation by Competent Authorities

5. Role of Competent Authorities
6. Fees
7. Compliance with the provisions of the Act
8. Reporting duties of the financial services provider
9. Information to Competent Authority
10. Examination
11. Records to be maintained by the financial services provider
12. Enforcement action by Competent Authority
13. Right to submit written representation and oral submissions
14. Publication by the Competent Authority

PART III - DUTIES OF FINANCIAL SERVICES PROVIDERS

15. General obligation
16. Transparency
17. Advertising

PART IV - CONTRACTUAL ARRANGEMENTS

18. Disclosure
19. Non-waiver of responsibility
20. Contract terms
21. Unfair contract terms
22. Cooling-off period
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PART V- DISTANT PROVISION FOR SERVICES

OR PRODUCTS

23. Regulation by Competent Authority

PART VI - ABUSIVE PRACTICES

24. Prohibited acts and conduct

25. Abusive collection and debt recovery practices
26. Default interest
27. Exercise of rights against the principal debtor and guarantor
28. Bundling and tying

PART VII - PROTECTION OF CONSUMER DATA

AND CONFIDENTIALITY

29. Confidentiality and protection of non-public consumer data

30. Collection of non-public consumer data
31. Storage of non-public consumer data
32. Disclosure of non-public consumer data

PART VIII - INTERNAL POLICIES AND PROCEDURES

33. Sale of service or products

34. Sales personnel remuneration policy

PART IX - FINANCIAL CONSUMER DISPUTES

35. Internal complaint handling unit

36. Complaint handling mechanism by Competent Authority
37. Confidentiality during proceedings
38. Remedies
39. Compliance with Competent Authority decision

PART X - DAMAGES

40. Liability for damages

41. Punitive damages
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PART XI - MISCELLANEOUS PROVISIONS

42. Offences and penalties
43. Power to compound an offence
44. Services provided or products offered from abroad
45. Regulations and directions
46. Right to Appeal
47. Transitional provision
SCHEDULE
 [25th April 2022] Supplement to Official Gazette 69

FINANCIAL CONSUMER PROTECTION ACT, 2022

(Act 6 of 2022)

I assent

Wavel Ramkalawan
President
14th April, 2022

AN ACT TO PROTECT THE INTERESTS OF FINANCIAL CONSUMERS; TO

FAIRLY, REASONABLY AND EFFECTIVELY HANDLE FINANCIAL CONSUMER
DISPUTES AND TO PROMOTE THE DEVELOPMENT OF THE FINANCIAL SECTOR
AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.

ENACTED by the President and the National Assembly.

PART I - PRELIMINARY
Short title and commencement
1. This Act may be cited as the Financial Consumer Protection Act,
2022 and shall come into operation on such date as the Minister may by notice
in the Gazette, appoint.
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Application
2.(1) Notwithstanding anything contained in the Consumer Protection
Act (Cap. 257), this Act shall apply to all the financial services providers
specified in the Schedule.

(2) The Consumer Protection Act (Cap. 257) shall not be applicable
to the disputes covered under this Act.

Interpretation
3. In this Act, unless the context otherwise requires —

“advertisement” means every form of advertising, whether in a

publication, or by the display of notices, signs, labels or show
cards by means of circulars or other documents, by an exhibition
of pictures or photographic or cinematographic films, by way of
sound broadcasting or television, by the distribution of
recordings, by internet or other computer or digital means, or in
any other manner, and the term “advertising” shall be construed
accordingly;

“Authorised Officer” means an officer authorised by the

Competent Authority under subsection (1) of section 10;

“bundled services or products” means two or more services or

products offered for sale in a package although each such service
or product is also available for sale separately in the market;

“Central Bank” means the Central Bank of Seychelles established

under section 3 of the Central Bank of Seychelles Act (Cap.26);

“Credit information system” (CIS) means the Credit Information

System owned and operated by the Central Bank;

“Competent Authority” —

(a) in respect of entities specified in Part A of the Schedule,

shall be the Central Bank;
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(b) in respect of entities specified in Part B of the Schedule,

shall be the Financial Services Authority,

and “Competent Authorities” shall be construed accordingly;

“contract term” means any provision forming part of a contract;

“corrective action” means an action taken to correct violation of

any of the provisions of this Act and the regulations made under
this Act;

“distance contract” means a contract concerning financial

services or products concluded between a financial services
provider and a financial consumer under a scheme operated by
the financial services provider, which, for the purposes of the
contract, makes exclusive use of one or more means of distance
communication up to and including the point at which the
contract is concluded;

“disclosure form” means the form specified by the Competent

Authority under subsection (6) of section18;

“Fair Trading Commission” means the Commission established

under section 3(1) of the Fair Trading Commission Act (Cap.
267);
“Financial Services Authority” means the Financial Services
Authority established under section 3 of the Financial Services
Authority Act, 2013 (Act 19 of 2013);

“financial services provider” means the entities specified in the

Schedule and their agents or third parties acting on behalf of
those entities and includes their agents and any other third party
to which the financial services provider has transferred one or
more of its services, or parts thereof;

“financial consumer” means a party who acquires or intends to

acquire financial services or products from a financial services
provider;
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“financial services or products” means the financial services or

financial products developed, offered or marketed by a financial
services provider or for and on behalf of another person by a
financial services provider;
“financial consumer dispute” means a civil dispute between a
financial consumer and a financial services provider arising over
a service or a product;
“Key Facts Statement” means a discrete, highly conspicuous
section of a disclosure document highlighting the important
information in pursuance of the provisions of this Act and the
regulations made thereunder;
“means of distance communication” includes any means by
which a financial contract or the provisioning of services or
products could be concluded, without the physical presence of the
financial services provider and the financial consumer;
“non-public consumer data” means the data provided by the
financial consumer to the financial services provider, which shall
not be made available to the public at large;
“tying” means sale of two or more products in a package and one
of such products is not sold separately;
PART II - REGULATION BY THE COMPETENT AUTHORITIES
Regulation by Competent Authorities
4.(1) The Competent Authorities shall oversee and regulate the
respective financial services providers listed in the Schedule.
(2) The Competent Authorities shall, where the need arises, work in
collaboration with the Fair Trading Commission with a view to achieve the
objectives of this Act.
(3) For the purposes of effective implementation of the provisions of
this Act and for better cooperation and exchange of information, the
Competent Authorities may enter into a written memorandum of
understanding amongst themselves and with other relevant entities.
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Role of Competent Authorities

5.(1) The Competent Authorities shall be responsible for the
administration of this Act and shall carry out their responsibilities with the
objective of promoting and advancing the welfare of financial consumers
by —
(a) maintaining a financial sector that is fair, accessible,
efficient and sustainable;

(b) mitigating any possible risk that financial consumers may

encounter in accessing any financial services or products;

(c) promoting fair financial business practices;

(d) protecting the financial consumers from —

(i) unconscionable, unreasonable, unjust practices; and

(ii) misleading, unfair, deceptive or fraudulent conduct;

(e) promoting financial consumer awareness and encouraging

responsible and informed consumer choice and behavior;

(f) promoting consumer confidence, empowerment and the

development of a culture of financial consumer
responsibility through education and advocacy; and

(g) providing an accessible, efficient and effective system of

redress to the financial consumers.

(2) A Competent Authority shall perform its functions under this Act
in addition to its other statutory functions and policies.

(3) In the event of any conflict between the functions under this Act
and financial stability, financial stability shall prevail.

Fees
6. A Competent Authority may charge the fees as may be specified
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by regulations by the Competent Authority including the annual fees from

the financial services providers for —

(a) conducting educational training and awareness programs;

(b) handling financial consumer disputes; and

(c) such other matters pursuant to its functions and objectives

under this Act.

Compliance with the provisions of the Act

7. A financial services provider shall ensure that its agents or a third
party acting on its behalf complies with the provisions of this Act, and shall
put in place adequate monitoring mechanisms to oversee the implementation
of this Act by its agent or a third party acting on its behalf.

Reporting duties of the financial services provider

8.(1) Every financial services provider shall submit a bi-annual report
to the appropriate Competent Authority on the policies adopted with respect
to financial consumer protection, including —

(a) the measures taken to monitor compliance with policies;

(b) financial education activities;

(c) information on the number, type and conclusion of disputes

of the financial consumers handled internally;

(d) the activities of agents or third parties acting on behalf of

the financial services provider; and

(e) any monitoring activity undertaken over such entities.

th
(2) The report for the first half of the year shall be submitted by 15
July of each year and that for the second half of the year shall be submitted
th
by 15 January of the succeeding year.
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(3) Where a financial services provider contravenes the provisions of

subsection (1) or subsection (2), the financial services provider shall be liable
to an administrative penalty not exceeding SCR10,000 and an additional
penalty of SCR1,000 for each day or part thereof during which the
contravention continues.
(4) Where a financial services provider submits a report under
subsection (1) giving information known to be false, or recklessly makes a
false or misleading statement, the financial services provider shall be deemed
to have committed an offence and is liable on conviction to a fine not
exceeding SCR400,000.

Information to Competent Authority

9.(1) A Competent Authority may, in carrying out its functions under
this Act, request a financial services provider to submit any information
including any books, records, video footage or other documents within such
period and in such manner as may be required by the Competent Authority.
(2) Where a financial services provider contravenes subsection (1),
the financial services provider shall be liable to an administrative penalty not
exceeding SCR10,000 and an additional penalty of SCR 1,000 for each day
or part thereof during which the contravention continues.

Examination
10.(1) A Competent Authority may authorise any of its officers to
exercise any of the powers pursuant to subsection (2) and subsection (3).

(2) An Authorised Officer may examine the premises of a financial

services provider, its agents or third parties acting on its behalf.
(3) An Authorised Officer may, during an examination under
subsection (2) and subject to section 37, require a director or employee of a
financial services provider or agent or a third party acting on its behalf —
(a) to produce for examination, any books, records or other
documents in his or her possession containing or likely to
contain such information as the Authorised Officer may
reasonably consider necessary; or
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(b) to give information in his or her possession pertaining to the

matter under examination.

(4) An Authorised Officer shall, if so requested, produce the

authority under which he or she is exercising powers under this section.

(5) Any person who —

(a) fails, neglects, or unreasonably delays to comply with any

requirement under subsection (3);

(b) in complying with a request made under subsection (3)

furnishes any information or produces any book, record or
other document which the person knows to be false in any
material particular,

shall be deemed to have committed an offence and is liable on conviction to

a fine not exceeding SCR400,000.

Records to be maintained by financial services provider

11.(1) Every financial services provider shall maintain physical records of
all transactions and correspondence between the financial services provider
and the financial consumer for a period of not less than seven years from the
date of the last transaction between them.

(2) The retention period of records in digital form or in any other form
shall be such as may be prescribed by regulations.

(3) Where a financial services provider fails to comply with the

requirements of subsection (1) or fails to comply with the provisions of the
regulations made under subsection (2), the financial services provider shall be
liable to an administrative penalty not exceeding SCR50,000.

Enforcement action by Competent Authority

12.(1) Where a financial services provider has violated any of the
provisions of this Act or any regulations, directions or orders made thereunder,
the Competent Authority may, in addition to a penalty under this Act, take one
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or more of the following enforcement actions against such financial services

provider —
(a) direct the financial services provider to take corrective action
within a specified period of time;

(b) suspend whole or partial services or products involved in the

violation;

(c) recommend to the financial services provider to take

appropriate action against its directors, supervisors,
managers or employees;

(d) direct the financial services provider to refund its customers

affected by the violation; and

(e) any other actions, as the Competent Authority may deem fit.

(2) Where a financial services provider fails to take the corrective

action under subsection (1)(a) during the time-period set out by a Competent
Authority, the Competent Authority may give a notice directing the financial
services provider to take corrective action within a specified period of time.

(3) Where the financial services provider fails to comply with the
directions issued under subsection (2), the Competent Authority may take any
actions provided under clauses (b) to (d) of subsection (1).

Right to submit written representation and oral submissions

13. The Competent Authority shall give an opportunity to a financial
services provider to submit a written representation and oral submissions on a
matter before it within the timeframe specified in writing before imposing a
penalty or taking any enforcement action under section 12.

Publication by competent Authority

14.(1) The Competent Authority may publish all general or individual
measures adopted under this Act, including enforcement measures, imposition
of penalties and its redress decisions or any statistical data, as it may deem
relevant.
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(2) The Competent Authority shall publish all aggregated data

concerning pricing or aggregated data on other business conditions.

PART III - DUTIES OF FINANCIAL SERVICES PROVIDERS

General obligation
15.(1) Every financial services provider shall treat all financial consumers
equitably, honestly and fairly.

(2) Every financial services provider shall have a duty of care in

respect of all financial services or products it provides, where the financial
service or product is in the nature of a trust or mandate arrangement.

(3) The financial services provider shall owe a fiduciary duty towards
its consumers as may be required under any other law for the time being in
force or in accordance with contractual stipulations.

(4) Every financial services provider shall treat its consumers fairly as
an integral part of its good governance principles and corporate culture and
impose such values on all its employees, agents and third parties providing
services on its behalf.

(5) Every financial services provider shall put in place internal

monitoring mechanisms to ensure respect of such principles under the
oversight and responsibility of its Board of Directors.

(6) The financial services providers shall either individually or jointly,

play an active role in financially educating their employees and financial
consumers and shall offer training programs on a regular basis.

(7) The financial services providers shall give special consideration to

the needs of vulnerable groups.

Transparency
16.(1) Every financial services provider shall provide at each place of its
business and of its agents and any other third party acting on its behalf, all
relevant and updated documents concerning its services or products, that are
comprehensible, legible and accurate.
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(2) Every financial services provider shall present its services and
products in a consistent manner to facilitate comparison between similar
services and products amongst financial services providers.

(3) Every financial services provider shall —

(a) inform all its financial consumers about the procedure to be

followed for lodging a complaint; and

(b) display conspicuously at each place of its business and of its

agents and any other third party dealing with financial
consumers on its behalf, information about its internal dispute
settlement and redress procedures.

(4) Information and documents displayed in the premises of the

financial services provider shall also be displayed on the website of the
financial services provider, if any.

(5) A financial services provider who fails to comply with the

provisions of subsections (1), (2), (3) or (4) shall be liable to an administrative
penalty not exceeding SCR50,000.

Advertising
17.(1) The financial services providers shall not —

(a) publish or advertise any information;

(b) carry out promotional activities in a manner,

that may mislead, deceive, conceal or give out false information to the public.

(2) The obligation to financial consumers shall not be less than that
indicated in the content of the advertisements under subsection (1) or in the
materials or explanations provided to financial consumers in promotional
activities.

(3) Financial education programs shall be used to provide objective

advice in line with the strategy for financial education put into place by the
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Competent Authorities and shall not be used solely as marketing initiatives for
financial services or products.

(4) Every financial services provider who fails to comply with the
provisions of subsections (1), (2) or (3) shall be liable to an administrative
penalty not exceeding SCR50,000.

PART IV - CONTRACTUAL ARRANGEMENTS

Disclosure
18.(1) Every financial services provider, before entering into a contract
with a financial consumer for the provision of financial services or products
shall —
(a) take precautionary measures to assess and ascertain the
suitability of those services or products to the financial
consumer;

(b) explain the important aspects of the financial services or

products and of the contract to the financial consumer;

(c) disclose associated risks; and

(d) have the financial consumer sign a disclosure form in which

the financial consumer acknowledges that the contents of
the disclosure form have been explained and the financial
consumer has understood the benefits and risks of the
financial services or products.

(2) A financial services provider who engages in lending business

shall carefully consider —
(a) the creditworthiness of the borrower;
(b) the intended use of the funds;
(c) the source for repayment;
(d) the security for the facility;
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(e) the prospective risks and benefits of the loan; and

(f) such other lending requirements as are necessary.

(3) Every financial services provider shall, while engaging in the

collection, processing and use of personal information, explain to the
financial consumer his or her rights regarding the protection of personal
information and the possible negative consequences of any refusal to provide
the information requested.

(4) The financial services provider shall provide to the financial

consumer, orally and in writing, information about the transaction costs and
possible gains and risks and aspects of material significance to the interests
of the financial consumer regarding the financial services or products offered
to him or her, as required under subsection (6).

(5) The financial services provider shall, before a purchase is made —

(a) provide the financial consumer in writing the terms and

conditions of the services or products, regarding the —

(i) fees and charges;

(ii) interest rate;

(iii) the total, aggregated cost of the services or products

and, if the service or product requires the consumer to
pay in installments, the repayment schedule for such
services or products;

(iv) key features of the service or product, including the

benefits, rights and obligations of the financial
consumer;

(v) significant risks, if any, associated with the services or

products;
(vi) a summary of the financial services provider privacy
policy;
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(vii) any costs associated with pre-payment or charges

associated with late payment; and
(viii) contact information of the financial services provider's
complaints unit and the Competent Authority;
(b) ensure that such terms and conditions are expressed in plain
and intelligible language;
(c) include aspects of material significance in the Key Facts
Statement;
(d) furnish the financial consumer with timely and updated
information on the relevant services and products; and
(e) give the financial consumer a reasonable time to review the
relevant documents before entering the contract.

(6) The Competent Authority shall specify the disclosure forms

according to the specific features of a service or product and the financial
services provider shall adopt the disclosure form specified by the Competent
Authority.

(7) Any financial services provider, who fails to comply with

subsections (1), (2) (3), (4), (5) and subsection (6) shall be liable to an
administrative penalty not exceeding SCR50,000.

Non waiver of responsibility

19.(1) A financial services provider shall not limit or exempt itself from
any of its obligations under this Act by entering into a contract with a
financial consumer.
(2) Where a financial services provider limits or exempts its
obligations in contravention of subsection (1), the provisions limiting or
exempting the obligation of the financial services provider shall be void ab
initio and not enforceable against the financial consumer.
(3) A financial services provider who fails to adhere to the provisions
of subsection (1) shall be liable to an administrative penalty not exceeding
SCR10,000.
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Contract terms
20.(1) A financial services provider shall ensure that the terms in a
contract with a financial consumer are expressed in plain and intelligible
language.

(2) Where there is disagreement over the meaning of any contractual

provision, the provision shall be given a general meaning advantageous to
the financial consumer.

Unfair contract terms

21.(1) The terms of a contract shall be fair and shall not be prejudicial to
the rights of a financial consumer.

(2) A term of a contract shall be deemed unfair when it causes an

imbalance between the rights of the financial services provider and the
financial consumer and is detrimental to the financial consumer.

(3) In determining the term of a contract as unfair under subsection

(2), consideration shall be given to the following —

(a) the nature of the financial services or product for which the
contract is concluded;

(b) all other terms of contract between the parties on which the
contract is dependent;

(c) the interests of the financial services provider;

(d) the interests of the particular class of financial consumers

who are likely to enter the contract; and

(e) all other circumstances at the time of conclusion of the

contract.

(4) An unfair term of a contract shall be void ab initio and not

enforceable against a financial consumer.
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Cooling-off period
22.(1) A financial consumer shall, subject to sub-section (2), have a
cooling-off period after the date of entering into a contract, within which the
financial consumer may terminate such contract relating to any financial
service or product.

(2) The cooling-off period referred to in subsection (1) shall be

prescribed by the Competent Authorities from time to time and the period
may vary, depending on the financial services or products.

(3) Where a contract is terminated under subsection (1), the financial

services provider shall —
(a) refund the money that the financial consumer has paid
under the contract within 14 working days after the delivery
of the notice to terminate;

(b) cancel any automatic payment plans and give notice of

termination on the CIS; and

(c) require the consumer to pay a reasonable fee to compensate

for the costs incurred by the financial services provider.

(4) Every financial services provider shall provide notice of the

consumer's right of rescission in all contracts and disclosures in respect of a
financial service or product.

(5) A financial consumer shall, where a contract is terminated under

subsection (1), refund the money that the financial services provider has paid
under the contract within a period of 14 working days from the delivery of
the notice to terminate the contract was given to the financial consumer.

PART V - DISTANT PROVISION FOR SERVICES OR PRODUCTS

Regulation by Competent Authority
23.(1) Unless prohibited by a Competent Authority, the supply of
financial services or products by means of distance communication or the
undertaking of distance contracts shall be permitted.
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(2) The Competent Authorities may make regulations —

(a) to protect the interest of the financial consumer under a

distant contract;

(b) relating to advertising and marketing of distant contracts;

(c) with respect to the transparency, clarity and fairness of

distance contracts and the provision of services and
products by means of distance communication; and

(d) requiring the financial services provider to give information

to the financial consumer.

(3) Provisions to protect financial consumers shall apply irrespective

of whether a financial services provider provides the services or products
directly or through its agents or third parties.

PART VI - ABUSIVE PRACTICES

Prohibited acts and conduct
24.(1) A financial services provider shall not put in place any unfair,
deceptive or abusive practice.

(2) A financial services provider shall not —

(a) offer or provide any financial services or product in
violation of the provisions of this Act;
(b) refuse to take any action required under the provisions of
this Act or regulations or directions issued under this Act.

Abusive collection and debt recovery practices

25.(1) (a) A financial services provider shall not apply abusive
collection and debt recovery practices against financial consumers and
guarantors.
(b) The Competent Authorities may by regulations prescribe the
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determination of abusive collection and debt recovery practices, referred to

in paragraph (a) of this section.
(2) (a) A financial services provider may, subject to the conditions
provided in paragraph (b), appoint a debt collection agency for the recovery
of debts.
(b) Where a debt collection agency has been appointed under
paragraph (a), the financial services provider shall inform the financial
consumer in advance about the type of debt to be collected by the debt
collection agency, the conditions of recovery and the period within which the
debt is to be collected by such agency.
(3) The debt collection agency appointed under subsection (2) shall
be bound by the same obligations as to the financial services provider in
terms of collection and debt recovery practices.
(4) The financial services provider shall monitor the debt collection
agencies appointed under subsection (2).
(5) (a) Debt collection agents shall follow the code of conduct
specified by the financial services provider in consultation with the
Competent Authorities.
(b) The code of conduct shall be published and made available
to financial consumers by financial services providers and displayed on the
website of the financial services provider.
(6) (a) Where a financial services provider exercises its right to
foreclose on an asset, it shall inform the financial consumer in writing in
advance about the procedures involved, and the process to be used to
foreclose on such property it holds as collateral security.
(b) The financial services provider shall inform the financial
consumer about the legal remedies and options available in respect of the
foreclosure process.
Default interest
26.(1) The rates of default interest or other charges of the same nature
and the time from when the default interest or other charge of the same
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nature is due shall be stipulated in the contract between a financial services

provider and its financial consumer.
(2) The default interest or other charges of the same nature shall not
exceed the amount as may be specified by the Competent Authorities each
year.
Exercise of rights against the principal debtor and guarantor
27. Notwithstanding any other law, a financial services provider shall
not initiate recovery process against a guarantor unless the recovery process
against the principal debtor and the secured properties is initiated in the first
instance and has failed to recover the debt from the principal debtor and the
secured properties.

Bundling and tying

28.(1) The financial services provider shall refrain from compelling
financial consumers to acquire bundled services or products.
(2) The financial services provider shall not use tying clauses that
unduly restrict the choice of consumers.

PART VII - PROTECTION OF CONSUMER DATA AND

CONFIDENTIALITY
Confidentiality and protection of non-public consumer data
29.(1) A financial services provider shall not disclose the data of its
financial consumers and shall protect the confidentiality of its non-public
consumer data and the data shall be utilised only for the purposes specified
and agreed to by the financial consumer or as required under any other law.

(2) The financial services provider shall formulate and adopt

adequate confidentiality policies and procedures that —
(a) enshrine that the non-public consumer data is owned by the
financial consumer;
(b) clearly set out the financial services provider's practices and
policies with respect to non-public consumer data;
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(c) identify any sensitive data collected and processed;

(d) explain the purposes for which the non-public consumer
data is collected and used;
(e) provide for security practices and procedures to safeguard
non-public consumer data; and
(f) include clear procedures where a financial consumer may
voluntarily allow the disclosure of his or her non-public
consumer data.

(3) The confidentiality policy adopted by financial services providers

shall be written in simple and understandable language.

Collection of non-public consumer data

30.(1) Every financial services provider shall disclose to its financial
consumers in advance about the —
(a) manner in which its non-public consumer data is processed
and stored;
(b) purpose for which the non-public consumer data is being
collected;
(c) intended recipients of the non-public consumer data; and
(d) contact details of the financial services provider collecting
the non-public consumer data.

(2) Every financial consumer shall have the right to review the
consumer's non-public consumer data and to correct or amend any inaccurate
or deficient data, if found incorrect.

Storage of non-public consumer data

31. Every financial services provider shall —
(a) implement reasonable and appropriate organisational,
physical and technical measures for the protection of non-
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public consumer data against unlawful access, destruction,

misuse or accidental loss;
(b) determine the appropriate level of security that shall be
maintained to preserve the confidential nature of non-public
consumer data, taking into account the risks of processing,
size of the organisation, current privacy practices and cost
of implementation;
(c) require that all of its non-public consumer data controllers
and third parties processing personal information shall abide
by a confidentiality clause similar in nature to privacy
provisions; and
(d) report to the appropriate Competent Authority and to the
affected financial consumers within 24 hours of any security
breaches resulting from the unauthorised disclosure of non-
public consumer data.
Disclosure of non-public consumer data
32. A financial services provider may disclose non-public consumer
data to a third party in the following circumstances —
(a) where the financial consumer has been informed about such
disclosure and permission has been given in writing by such
consumer;
(b) where the third party in question has been authorised by the
financial consumer to obtain the data from the financial
services provider; and
(c) where the financial services provider is required to disclose
the non-public consumer data under mandated Credit
Reporting or under any other law or by a court order.

PART VIII - INTERNAL POLICIES AND PROCEDURES

Sale of service of products
33.(1) Employees engaged in the sale of financial services or products or
in advising customers shall perform their duties in accordance with good
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business customs and professional ethics and integrity, observe the financial
customer's person and inform customers fully about the terms for use of
those services or products.

(2) Every financial services provider shall arrange for adequate and
continuous training to its employees.

(3) The Competent Authorities shall specify types of complex and

high risk services or products from time to time.

(4) A financial services provider shall report and receive the approval
of the Competent Authority before the initial sale of complex and high-risk
services or products.

(5) The person responsible for a branch unit in Seychelles shall seek
approval from the Competent Authority for the sale of complex and high-risk
services or products where the branch unit is a foreign financial services
provider.

(6) Where a financial services provider fails to comply with

subsections (1), (2), (4) or (5), the financial services provider shall be liable
to an administrative penalty not exceeding SCR100,000.

Sales personnel remuneration policy

34.(1) Every financial services provider shall formulate and adopt a
sales personnel remuneration policy and have it approved by its Board of
Directors.

(2) A financial services provider shall not provide incentives to staff,

management, agents or third-party service providers that encourage
unethical consumer treatment or over-indebtedness.

(3) A financial services provider shall give equitable consideration to

consumer rights and interests, the various risks that the financial services or
products pose to the financial industry and customers, and shall not only
consider the sales performance target achievement of such services or
products by the sales personnel.
 [25th April 2022] Supplement to Official Gazette 91

(4) Where a financial services provider fails to comply with

subsection (1) or subsection (2), the financial services provider shall be
liable to an administrative penalty not exceeding SCR25,000.

PART IX - FINANCIAL CONSUMER DISPUTES

Internal complaint handling unit
35.(1) Every financial services provider shall establish an internal
Complaint Handling Unit to receive complaints from the financial consumer,
either in person or in writing, telephone, e-mail, webpage or other similar
methods.
(2) Every financial services provider shall implement and maintain
such procedures for the Complaint Handling Unit in such manner as the
Competent Authorities may prescribe by regulations.
(3) The financial services provider shall set a timeline for resolving
each complaint, which shall not exceed the timeframe prescribed by the
Competent Authorities.
(4) A financial services provider shall inform a financial consumer of
the procedure to appeal or to further pursue a complaint in the event of an
adverse decision, including the resolution process specified by the
appropriate Competent Authority.
(5) The appropriate Competent Authority may monitor the complaint
handling process.
(6) The Competent Authorities may exempt a financial services
provider from establishing a Complaint Handling Unit considering the size
of the financial services provider or any other relevant conditions.
(7) Notwithstanding subsection (6), every financial services provider
shall have in place a complaint handling procedure in line with the
requirements of the appropriate Competent Authority.

Complaint handling mechanism by Competent Authority

36.(1) The Competent Authorities shall establish a complaint handling
mechanism as may be prescribed by regulations.
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(2) No complaint shall be entertained by the Competent Authorities

under this section for any act or omission by the financial services provider
after a period of three years from the date of occurrence of the act or
omission.

Confidentiality during proceedings

37. The Competent Authorities and their personnel shall keep
confidential —

(a) the application and any explanatory material or concessions

submitted to the other party of the financial consumer
dispute during the course of the dispute;

(b) material and information pertaining to the case,

unless they are already in the public domain, or any other law requires that
they be made public.

Remedies
38. The Competent Authorities may, take one or more of the
following measures in the case of violation of any of the provisions of this
Act by a financial services provider or on an application by the aggrieved
person —

(a) make an order or declare the whole or part of a contract

made between the financial consumer who suffered, or is
likely to suffer loss or damage, and the financial services
provider to be void and if the Competent Authority thinks
fit, to be void ab initio or at all times on and after such date
before the date on which the order is made;

(b) make an order or direction varying such contract or

arrangement in such manner as may be specified in the
order and, if the Competent Authority thinks fit, declare the
contract or arrangement to have effect as so varied on and
after such date or before the date on which the order is
made;
 [25th April 2022] Supplement to Official Gazette 93

(c) make an order or direction directing the person who

engaged in the wrongful conduct to refund money or return
property to the person who suffered the loss or direct
damage;

(d) make an order or direction directing the person who

engaged in the wrongful conduct to pay to the person who
suffered the loss or damage the amount of the loss or direct
damage;

(e) publish the names of the offenders;

(f) refer the matter to criminal authorities for prosecution.

Compliance with Competent Authority decision

39.(1) Every financial services provider shall comply with the decision
of the Competent Authority made under section 38, within the time limits
specified in its decision.

(2) Where the financial services provider fails to comply with the
decision of the Competent Authority within the specified time, the
Competent Authority shall take enforcement action under section 12.

PART X - DAMAGES
Liability for damages
40.(1) Every financial services provider shall, subject to subsection (2),
be liable to damages under section 38(d), where the financial services
provider violates any of the provisions of this Act, causing direct and
consequential damage to a financial consumer.

(2) A financial services provider shall not be liable where the

financial services provider can prove that the occurrence of the harm was not
due to —

(a) its failure to understand the suitability of a service or

product to the financial consumer;
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(b) its failure to provide an explanation, or where an

explanation provided was untrue or incorrect; or
(c) its failure to fully disclose risks to the financial consumer.

Punitive damages
41.(1) A Court may, in response to a claim filed by a financial consumer,
award punitive damages as it deems reasonable for the damage caused by an
act of misconduct of a financial services provider.

(2) A Court may also award punitive damages up to the amount of

the actual damage, where the damage was caused by negligence of the
financial services provider.

(3) The Competent Authority shall not award punitive damages

under the Complaint Handling Mechanism established under this Act to
settle the financial consumer disputes.

(4) The right to claim punitive damages shall be extinguished if not

exercised within two years from the date the claimant has knowledge of the
cause entitling him for damages, or within five years from the date of
occurrence of such cause for damages, whichever is earlier.

PART XI - MISCELLANEOUS PROVISIONS

Offences and penalties
42.(1) A financial services provider, who contravenes any of the
provisions of this Act shall be deemed to have committed an offence and
where no penalty has been provided for such offence, the financial services
provider shall be liable on conviction to a fine not exceeding SCR400,000.

(2) In determining the appropriate penalty for the purposes of this

section, the Court shall have regard to the following —
(a) the nature, duration, gravity and the extent of the
contravention;
(b) any loss or damage suffered as a result of the contravention;
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(c) the behaviour of the financial services provider;

(d) the market circumstances in which the contravention took
place;
(e) the level of profit derived from the contravention;
(f) the degree to which the financial services provider
cooperated with the Competent Authority; and
(g) whether the financial services provider has previously been
found in contravention of this Act.

(3) The Court may waive payment of all or part of the payment of the
penalty which would otherwise be payable under this Act where there are
exceptional circumstances in a particular case.

Power to compound an offence

43.(1) Subject to this section, a Competent Authority may in
consultation with the Attorney General, if satisfied that a financial services
provider has committed an offence under this Act, where the offence is
punishable by a fine, compound the offence in lieu of instituting proceedings
under this Act.

(2) The Competent Authority shall exercise the power under

subsection (1) if the financial services provider accepts in writing liability to
the offence.

(3) Where an offence is compounded under subsection (1), no

proceedings shall be instituted in relation to that offence against the financial
services provider.

(4) The Competent Authority, after identifying the offence shall

notify the financial services provider in writing of —
(a) the offence;
(b) the amount of compounded monetary penalty that may be
agreed to;
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(c) the requirement for the financial services provider to notify

the Competent Authority in writing, no later than 14 days
after receipt of the Competent Authority's written
notification of the financial services provider's refusal or
acceptance to compound the offence;
(d) the requirement for the financial services provider which
agrees for the offence to be compounded to make payment
of the compounded monetary penalty to the Competent
Authority no later than 5 days after acceptance of the
written notification under subparagraph (c);
(e) the manner in which payment under subparagraph (d) shall
be made to the Competent Authority; and
(f) any other information deemed relevant by the Competent
Authority.

(5) The compounded monetary penalty shall not exceed the

maximum fine prescribed under this Act.

(6) Acceptance to compound an offence and payment thereof shall be

final and conclusive.
(7) Where the terms of the agreement to compound an offence has
been breached, the Competent Authority may institute appropriate legal
proceedings.

Services provided or products offered from abroad

44. Without prejudice to the authorisation mechanisms established
under relevant legislation to provide financial services or products in the
country, the provisions of this Act shall be mandatory in relation to any
financial service provided or product offered in Seychelles, notwithstanding
the location of the financial services provider and the applicable law.

Regulations and directions

45.(1) The Competent Authorities may make regulations to carry out the
purposes and objectives of this Act.
 [25th April 2022] Supplement to Official Gazette 97

(2) Without prejudice to the generality of the provisions of subsection

(1), regulations may provide for —

(a) appropriate product design and delivery;

(b) the prevention of over-indebtedness;

(c) transparency;

(d) the methodology for pricing;

(e) retention period of other forms of information;

(f) fair and respectful treatment of financial consumers;

(g) privacy of consumer data;

(h) distant provision of services and products;

(i) the procedures to enforce security interests;

(j) mechanisms for complaint resolution; and

(k) amendment of the Schedule.

(3) A Competent Authority may, for the discharge of its functions

under this Act, issue such directions from time to time to the financial
services providers, as it may consider necessary:

Provided that no direction under this section shall be issued except on

the matters relating to implementation of section 12 and section 24(2)(b).

Right to Appeal
46. Any person aggrieved by a decision of a Competent Authority
made under sections 8(3), 9(2), 11(3), 12, 16(5), 17(4), 18(7), 19(3), 33(6)
and 34(4) may file an Appeal before the Supreme Court.
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Transitional provision
47.(1) Every financial services provider shall comply with the
provisions of this Act within six months from the coming into force of this
Act.

(2) Within such period of time, the Competent Authorities shall adopt
adequate measures to permit smooth implementation of this Act within
individual services or products according to the needs and requirements
under this Act.

SCHEDULE

(Section 4)
Financial Services Provider

PART A
A licensee under the Financial Institutions Act.
The Development Bank established under the Development Bank of
Seychelles Decree.
Housing Finance Company Limited.
A credit union established under the Credit Union Act.
A licensee under the Financial Leasing Act.
A payment services provider and operator of a payment, clearing or
settlement system under the National Payment System Act.
PART B
A licensee under the Mutual Fund and Hedge Fund Act.
A licensee under the Hire Purchase and Credit Sale Act.
A licensee under the Securities Act.
A licensee under the Insurance Act.
 [25th April 2022] Supplement to Official Gazette 99

I certify that this is a correct copy of the Bill which was passed by the
National Assembly on 23rd March, 2022.

Mrs. Tania Isaac

Clerk to the National Assembly