Governor,

Having perused the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities; and

Regulation No. 29/2011 - Regulations regarding Bank Loans & Other Services Offered to Individual Customers, its amendments and additional clarifications.

The Central Bank's Board of Directors has issued the following resolution:

Article One:

The Appendix 2 of Regulation No. 29/2011 - Regulations regarding Bank Loans & Other Services Offered to Individual Customers shall be replaced with the enclosed appendix.

Article Two:

This Resolution shall be communicated to whomsoever is concerned for implementation, and shall be published in the Official Gazette in both Arabic and English.

Amendment to the Regulations Regarding Bank Loans & Services Offered to Individual Customers (29/2011)

Introduction:

1. This Amendment applies to and forms part of the Regulations Regarding Bank Loans & Services Offered to Individual Customers (29/2011) (the “Regulations”). It applies specifically to Appendix 2 of those Regulations, which set out the “Maximum Limits for Fees and Commissions Charged on Retail Customer Service”. Upon coming into force, this Amendment replaces the previous version of Appendix 2 and is mandatory and enforceable in the same manner as the Regulations. This Amendment also replaces any other fee caps set out by the Central Bank at this time but not future caps set outside of the scope of this document.
    
2. All fees set out in this Amendment are exclusive of UAE VAT charges.
    
3. Article 11 of 29/2011 remains in force and banks and finance companies must comply accordingly.
    
4. Banks and finance companies will need to notify and seek approval from the CBUAE ex-ante for any planned introduction of a new fee or a change in existing fee levels (which are larger than 5%) not capped by this amendment. Such notifications can be submitted to the CBUAE during the first 5 business days of April and October of any given year.
    
5. The Central Bank will accept ad hoc notifications for exempt fees on an ad hoc basis where it is shown to the Central Bank’s satisfaction that these relate to new products. This will be assessed on a case-by-case basis.
    
6. The fee caps set out in this Amendment represent the maximum permissible charges. Banks and finance companies must have appropriate product approval processes in place for all products, which include an examination of the basis and appropriateness of a fee calculation and, if applicable, must charge lower fees than those prescribed in these caps.
    
7. The Central Bank will supervise regulated entities to ensure that rates are applied in a fair and appropriate manner. This will include ensuring that regulated entities do not automatically default to using maximum caps where actual costs may be lower.
    
8. Regulated entities to which the Regulations apply are required to provide the Central Bank with a full list of the fees they charge no later than 30 days after this Amendment comes into force. Up to date fees should also be made publicly available and should be easily accessible for consumers (e.g. online and in branches).
    
9. These fee caps will be reviewed on an annual basis for continued suitability.

Maximum Limits for Fees and Commissions Charged on Retail Customer Service