Banks operating in Angola must guarantee capital invested in complex financial products

13 March 2020

Banks operating in Angola are required to guarantee the capital invested by clients in complex financial products, “under any circumstances,” according to Notice no. 5/2020, of 28 February, published on Thursday by the National Bank of Angola.

The Notice lays down rules for the marketing of financial products sold by financial institutions, taking into account the need to protect consumers of those services, “given the development of the Angolan financial system and increased complexity of the financial products marketed,” such as dual deposits and indexed deposits.

The Notice also sets out that financial institutions should provide their customers with full information on these financial products before they are taken on, through a technical information sheet in a format defined by the Angolan central bank, and included as an appendix to the Notice, in order to allow customers to make informed decisions.

It is also set out the information to be provided to customers during the lifetime of deposits, as well as their frequency.

The central bank added in the statement that indexed deposits are bank deposits whose characteristics differ from a traditional savings account because its profitability is either fully or partly related to the performance of other instruments or relevant financial or economic variables, such as, for example, stocks or a basket of stocks, an index or a basket of share/commodity indices, the exchange rate for a given foreign currency against another currency, among others.

Dual deposits are financial products resulting from the combined sale of two or more bank deposits.

The notice of the Angolan National Bank can be accessed online at: (macauhub)