Maseru, May 08 — Following the reading of the Report on the Financial Consumer Protection (Disclosure of Information on Insurance and Investment Products) Regulations, 2025, Senator Mawinnie Kanetsi has welcomed the proposed Regulations, saying they are aimed at promoting transparency and improving understanding of insurance and investment products among consumers.
Senator Kanetsi said the Regulations will require Financial Service Providers to adopt formal written disclosure policies and procedures approved by both the Board and Management. She noted that the move is intended to ensure that consumers are provided with clear and comparable information before entering into any financial agreement.
According to the Regulations, Financial Service Providers will be required to issue Key Facts Statements at the pre-transaction stage, clearly outlining the essential features of insurance or investment products. Consumers will also be required to sign the Key Facts Statements to confirm that they have received and understood the information provided.
Senator Kanetsi highlighted that many Basotho have previously fallen victim to loan agreements they did not fully understand due to financial desperation, often signing contracts with conditions that later become burdensome. She added that in many instances, consumers are either not given sufficient time to read agreements or are discouraged by small and unclear print.
The Regulations further require that Key Facts Statements be made accessible through multiple channels, including head offices, branch or agent offices, websites, email, audio and braille formats, as well as in official languages preferred by the consumer.
In addition, Financial Service Providers will be obligated to re-issue Key Facts Statements whenever information in the final agreement differs from what was initially provided during the pre-transaction stage.
Senator Kanetsi concluded by saying the Regulations will strengthen oversight of Financial Service Providers and help ensure that the rights and interests of consumers are protected.
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