Brunei's central bank mandates fair treatment of financial consumers from March 2027

Facts

Brunei Darussalam Central Bank (BDCB) on 16 September 2026 published the Notice on Fair Treatment of Financial Consumers (CE/N-1/2026/1, dated 31 August 2026). It takes effect on 1 March 2027 and applies to banks and financial institutions operating in Brunei (source: BDCB). It requires integrating conduct risk into governance and risk management, clear and balanced information, suitable advice and recommendations, fair contract terms, and attention to vulnerable consumers in product design and delivery (source: BDCB).

Also dated 31 August, Amendment No. 2 to the Notice on Market Conduct (FCI/N2/2021/1) takes effect on 1 March 2027. It applies to all banks and financial institutions, explicitly including payment system operators, pawnbrokers, takaful operators and insurers. It requires contract terms to include all interest, profit rates, fees and penalties; a 'reasonable period' (no number of days specified) for customers to decide whether to continue or terminate after material changes; a ban on false or misleading advertising; options to consent to or refuse personal data collection; and readable digital screens that take account of screen size and users' digital literacy (source: BDCB notice PDF).

On 22 September 2026 BDCB published five education materials covering borrowing basics and how to read and improve credit scores (source: BDCB). BDCB's credit bureau began operating in September 2012, introduced self-inquiry and dispute procedures in September 2014, and since 2016 has collected utility and telecoms payment data from the Housing Development Department, the electricity authority and telecoms companies (source: BDCB).

Analysis

Over time, BDCB has built borrowers' information infrastructure step by step: a credit bureau in 2012, self-inquiry in 2014 and non-financial data from 2016. The new notice and education materials layer duties of explanation and fair treatment on top. The preparation period is about six months, and the explicit inclusion of digital providers is notable.

Implications

Counterpoints and uncertainties

The rules are principles-based; concrete standards for a 'reasonable period' or 'vulnerable consumers' are not given, so the burden will depend on supervisory interpretation. The size and arrears of Brunei's consumer credit market were not confirmed, so the effect of the rules cannot be measured.