The CBUAE's SME customer protection regulation (Circular C 2/2026) marks a significant development in the UAE's customer protection landscape for Small and Medium-Sized Enterprise (SME) customers. Effective from 13 September 2026, the regulation replaces the SME Market Conduct Regulation and introduces a more comprehensive framework aimed at strengthening customer protection standards across banks and finance companies operating in the UAE.
The regulation reflects a broader shift towards outcomes-based regulation, with increased emphasis on ensuring fair treatment of SME customers throughout the customer lifecycle. Licensed Financial Institutions (LFIs) are expected not only to comply with regulatory requirements but also to demonstrate that their products, services, communications and business practices consistently deliver fair customer outcomes.
For Boards, Senior Management and control functions, the regulation introduces enhanced governance and oversight expectations, requiring customer protection considerations to be embedded within strategic decision-making, product governance, customer communications, complaint handling processes and support mechanisms for customers experiencing financial difficulty. The regulation also establishes new expectations relating to customer data governance, and the ongoing monitoring of customer outcomes.
As implementation deadlines approach, many financial institutions are assessing the adequacy of their existing frameworks, policies, controls and customer journeys to identify areas requiring enhancement and alignment with regulatory expectations.
In this article, we highlight the key requirements of the regulation, including product governance, customer communications, complaint handling, support for customers experiencing financial difficulty, and new expectations relating to customer data governance and protection
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The regulation reflects a broader shift towards outcomes-based regulation, with increased emphasis on ensuring fair treatment of SME customers throughout the customer lifecycle. Licensed Financial Institutions (LFIs) are expected not only to comply with regulatory requirements but also to demonstrate that their products, services, communications and business practices consistently deliver fair customer outcomes.
For Boards, Senior Management and control functions, the regulation introduces enhanced governance and oversight expectations, requiring customer protection considerations to be embedded within strategic decision-making, product governance, customer communications, complaint handling processes and support mechanisms for customers experiencing financial difficulty. The regulation also establishes new expectations relating to customer data governance, and the ongoing monitoring of customer outcomes.
As implementation deadlines approach, many financial institutions are assessing the adequacy of their existing frameworks, policies, controls and customer journeys to identify areas requiring enhancement and alignment with regulatory expectations.
In this article, we highlight the key requirements of the regulation, including product governance, customer communications, complaint handling, support for customers experiencing financial difficulty, and new expectations relating to customer data governance and protection
DOWNLOAD