Dear clients,

The Organic Financial Education Law has recently been enacted in Ecuador. This regulation introduces significant obligations for actors within the financial system, the business sector, and entities that interact with consumers in connection with financial products and services. Below is an executive summary of the most relevant aspects and the recommended immediate actions.

1. Purpose of the Law

The law seeks to strengthen the financial knowledge of the population by promoting informed decision-making, financial inclusion, and consumer protection. To this end, it establishes financial education guidelines that must be implemented by various public and private entities.

2. Obligated Parties

Depending on the specific scope of their activities, the following may be required to comply with this regulation:

• Entities of the financial system (banks, cooperatives, insurance companies, etc.)
• Companies that offer financing or credit
• Educational institutions
• Public entities with economic or social responsibilities
• Companies that market financial or partially financial products

3. Key Obligations

Among the most relevant obligations are the following:

a. Implementation of Financial Education Programs

Entities must:

• Design and implement financial education programs aimed at their clients or users
• Ensure that information is clear, accessible, and understandable

b. Informational Transparency

Obligations are reinforced with respect to:

• Disclosure of the terms and conditions of financial products
• Explanation of risks, costs, and benefits
• Use of plain and simple language

c. Internal Training

Organizations must:

• Train their personnel on financial education topics
• Incorporate best practices in customer service

d. Coordination with Authorities

The participation and oversight of regulatory authorities are contemplated, which may:

• Issue secondary regulations
• Verify compliance
• Impose sanctions in cases of non-compliance

4. Urgent Implementation Measures

We recommend that our clients prioritize the following actions:

Regulatory Assessment

• Determine whether your organization qualifies as an obligated party
• Evaluate gaps between current practices and the new requirements

Design of a Financial Education Program

• Define content, target audiences, and communication channels
• Establish compliance indicators

Review of Informational Materials

• Adapt contracts, advertising, and documents to standards of clarity and transparency

Staff Training

• Implement immediate training for commercial, legal, and customer service teams

Regulatory Monitoring

• Monitor secondary regulations to be issued by the competent authorities (key for future adjustments)

5. Risks of Non-Compliance

Non-compliance may result in:

• Administrative sanctions
• Reputational damage
• Increased legal contingencies involving consumers

6. How Can We Assist You?

At Robalino Abogados, we have a team specialized in financial regulation, compliance, and consumer protection that can assist you with:

• Assessment of the law’s impact on your organization
• Compliance diagnostics and gap analysis
• Design and implementation of financial education programs
• Adaptation of policies, contracts, and informational materials
• Training of internal teams
• Support in responding to regulatory requirements

We remain at your disposal to support the evaluation and implementation of this regulation and to ensure efficient and timely compliance.

Sincerely,

This document does not constitute legal advice and is provided solely for general informational purposes. Should you require specific legal assistance, please contact us through our usual channels.