Investor Presentaiton
Globally, several jurisdictions have introduced varying approaches to
regulate some of the EmFi activities e.g., BNLP
Australia
United States of America
United Kingdom
Singapore
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The Australian Finance Industry
Association (AFIA) in collaboration
with BNPL providers proactively
developed a voluntary Code of
Practice for the BNLP sector aimed
at increasing consumer protection.
The Code is intended to:
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Sensitivity: Public
Promote a customer-centric
approach to the design
Marketing and distribution of a
BNPL product or service
Promote high industry
standards of service for
customers
Build best practices across
the BNPL sector
Support compliance with legal
and industry obligations
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Some state laws require BNPL
providers to register as lenders while
some states for instance, California do
cover BNPL.
The Consumer Financial Protection
Bureau (CFPB) has also issued
guidelines for BNPL providers outlining
potential consumer risks.
There is evidence of with some
providers operating under the US
Regulation Z a federal law aimed at
protecting
customers
standardising how lenders describe
the scope of their business.
and
• The Financial Conduct Authority
(FCA) has plans to protect
consumers through the amendment
of interest-free BNPL credit
agreements.
• Under the plans:
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Lenders will be required to
carry out affordability checks;
Amend financial promotion
rules to ensure BNPL
advertisements are fair, clear,
and not misleading.
Brands will require approval
from the FCA
Borrowers could take their
complaints to the Financial
Ombudsman Service (FOS).
Singapore has taken more of a
"bottom-up" approach to the task
of integrating BNPL into current
legal frameworks.
. The Singapore
.
Fintech
Association (SFA) under the
guidance of Monetary Authority of
Singapore (MAS) has launched a
BNPL Working Group to develop
a code of conduct for
providers, with a focus on
consumer rights and protection.
The initial proposal is planned to
be released later this year.View entire presentation