When developing products and services internal policies and procedures, banks must consider the following:
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| 6.2.1 | Designing and bringing to the market products and services with features, charges and risks that meet the interests, objectives and characteristics of, and are of benefit to the market segment identified for the products and services. In this regard, a formal customer appropriateness and customer fairness assessment must form part of bank’s processes before approval of new products and services.
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| 6.2.2 | The products and services offered to customers are fair and suitable.
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| 6.2.3 | Avoid any conflicts of interest, potential for mis-selling, terms and conditions that are inherently unfair to consumers, and business practices that restrict the freedom of choice to consumers.
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| 6.2.4 | To be proportionate to the nature, scale, risk, and complexity of a bank’s products and services, and designed to identify and control product risk across the value chain, including at minimum the stages of product development, authorization and governance, price, marketing, sale and distribution.
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| 6.2.5 | The gradual commercial launch of any new product and service taking into consideration the market segment, riskiness and complexity of the product and service.
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| 6.2.6 | Compliance with all applicable rules and regulations issued by SAMA and all other relevant regulators when developing a new product and service as well as any subsequent updates to the rules and regulations. Examples of such rules and regulations (but not limited to):
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| | a. | Responsible Lending Principle for Individual Customers (issued in 2018).
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| | b. | Financial Consumer Protection Principles and Rules (issued in 2022).
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| | c. | Rules for Advertising Products and Services Provided by Financial Institutions (issued in 2023).
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| | d. | Debt Collection Regulations and Procedures for Individual Customers (issued in 2018).
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| | e. | SAMA Cyber security Framework (issued in 2017).
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| | f. | SAMA Counter-Fraud Framework (issued in 2022).
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| | g. | SAMA Business Continuity Management Framework (issued in 2017).
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| | h. | Information Technology Governance Framework (issued in 2021).
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| | i. | Rules related to touch\face ID, Tahaqaq requirements, digital signature, national and global payment requirements for MADA, Visa, MasterCard, Face recognition.
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