The Central Bank of Seychelles has issued Guidelines on Unfair Contract Terms in Financial Services aimed at making contracts between CBS-regulated financial service providers and consumers fairer and more transparent. The measure clarifies what constitutes an unfair term, renders certain automatically unfair clauses invalid in financial contracts, and introduces a Fairness Test to assess other potentially unfair terms against principles of transparency, mutual benefit, and proportionality. Automatically unfair terms include clauses that prevent consumers from filing complaints or impose fees not permitted by law. Other terms flagged as potentially unfair include clauses that shift excessive risk to consumers, charge high or unreasonable fees for early termination, or allow a provider to change interest rates or conditions without proper notice. Financial service providers must review existing contracts, templates, and standard terms and conditions for compliance. A six month transition period applies, with the guidelines taking effect on November 4, 2026. CBS will support implementation, monitor compliance through supervision, and may require unfair terms to be amended or removed where breaches are identified.
Central Bank of Seychelles 2026-05-05
Central Bank of Seychelles issues unfair contract term guidelines with six month transition for regulated financial service providers
The Central Bank of Seychelles has issued Guidelines on Unfair Contract Terms in Financial Services to enhance fairness and transparency in contracts between regulated financial service providers and consumers. The guidelines define automatically unfair clauses, introduce a Fairness Test for other potentially unfair terms, and require providers to review and amend existing contracts, with compliance monitored through supervisory processes and the power to mandate removal of unfair terms.