Appropriate financial services enable people to invest in their businesses and livelihoods. If the services are provided responsibly they can lead to increased income and assets. If not, they can produce greater risk and vulnerability.

UNCDF supports evidenced-based and proportionate regulation that balances access and protection. It does so by working with government and development partners to build consensus on sound policies and practices. UNCDF has joined with other donors and investors to encourage financial services providers to adhere to sound practices. It raises awareness, supports certification of providers, and builds provider capacity to operationalize sound client protection principles. UNCDF also works to build client capacity to make informed decisions and use financial products wisely.

• UNCDF was one of the founding members and is on the board of the Smart Campaign, a global effort to embed client protection practices into the institutional culture and operations of the microfinance industry.
• UNCDF helped develop the Principles for Investors in Responsible Finance, which provide a framework for responsible investment in inclusive finance.
• UNCDF has incorporated client protection into its Performance-Based Agreements with partners.

UNCDF programmes support training of financial services providers, government and other stakeholders on implementation of principles of client protection. UNCDF has also supported a high-level forum on disclosure and pricing disclosure in Africa. In several countries, UNCDF is working with the government and private sector to develop and test strategies for building financial capability at the client level.

UNCDF houses the office of the United Nations Secretary General’s Special Advocate (UNSGSA) for Inclusive Finance for Development. In this role, Her Royal Highness Princess Máxima of the Netherlands advocates at the highest levels for consumer protection, responsible investing and appropriate regulation of financial services.