1. Pro-Client Principles: SEEP Takes the Lead Consumer Protection Working Group 27 October 2004

2. Background of SEEP’s Involvement in Consumer Protection z2001: Consumer Protection Task Force begins. z2002: Task Force becomes Working Group and produces consumer protection template. z2003: Publication of Trust through Transparency. Members task CPWG to develop a proactive stance for consumer orientation and protection. z2004: SEEP Pro-Client Principles developed.

3. Proposal to SEEP Membership from October 2003 AGM 1. Adopt ethical statement for consumer orientation and protection. 2. Encourage development of policy or code by each member. 3. Endorse CPWG to assist members in developing policy or code and documenting experiences. 4. Review experiences adopting policies or codes after two years.

4. Accomplishments during Year zDeveloped goal and objectives for the working group. zSecured funding from Ford Foundation for dissemination of Consumer Protection information. zMade presentations at meetings and workshops – AMFO Bosnia, PT Ukabima Indonesia, Russia Microfinance Center, Uganda Microfinance Forum and Inter-American Development Bank.  Partnered with summer institutes at Uganda Martyr’s University and West African based Centre Africain de Management et de Developpement des Cadres (CAMDC) to develop and deliver seminars on consumer protection to students studying for an associates degree in Microfinance and Community Development.

5. Accomplishments during Year (con) zSupported Microfinance Network (MFN) in drafting a pro-consumer pledge to be adopted by all 29 MFN members in November. zConducted a survey of pro-client initiatives among SEEP members, MFIs and networks. zFacilitated a process leading to development of SEEP Pro-Client Principles.

6. SEEP Member Initiatives on Pro-Client Policies zFINCA Consumer-Oriented Ethical Statement zACCION International Pro-Consumer Pledge zFreedom from Hunger Statement on Ethical Treatment of Clients zConcern Worldwide Policy on Ethical Treatment of Clients zOther: MFN, AMFIU, MFRC, MFF, Partner, Prizma With a potential to impact more than 10 million clients

7. Purpose of Proposed SEEP Pro-Client Principles zRaise awareness of issues amongst members. zAllow members to be proactive on issue before standards imposed by donors and regulators. zHelp members stay focused on their respective missions and promote quality services in the face of increasing competition. zMove members toward developing industry-wide guidelines. zProvide standards on which clients can rely.

8. Proposed Pro-Client Principles zQuality of Service zDignified Treatment zTruthful and Transparent Information zAppropriate Pricing zProtection from Unethical and Illegal Practices zPrivacy of Client Information

9. By accepting pro-client principles, SEEP members agree to: zApply these principles in their own organizations. zPromote the widespread application of these principles among member implementing institutions. zRaise awareness about the importance of pro-client principles where SEEP members work around the world.

10. Implications of Adoption: Mission Statement To advance the practice of micro and small enterprise development among its members, their international partners, and other practitioners. The SEEP Network: zProvides collective examination from which emerges learning that advances professional development. zIncreases program impact. zFosters continuing innovation. zInforms the policy arena. zPromotes a pro-client approach by members and their affiliates or partners.

11. Implications of Adoption: Benefits of Membership zOpportunity to participate in lateral learning. zOpportunities to communicate with colleagues from around the world in a collegial environment. zOne free copy of each new SEEP publication. zDiscounted fee for the SEEP Annual General Meeting. zOpportunity to be part of a network that is recognized for fair treatment of clients.

12. Implications of Adoption: Criteria for Membership zOperate as a nonprofit private development organization. zBe located in North America. zImplement micro and small enterprise programs in a developing country. zDemonstrate interest in advancing the state of the micro and small enterprise development sector. zBe committed to contributing staff time and travel costs, as well as annual dues. zDemonstrate a pro-client approach.

13. Membership Requirement: Demonstration of Pro-Client Approach zAll members agree to have a pro-client policy or code of practice. zAll members commit to support their affiliates or partners to develop their own pro-client policies.

14. Membership Requirement: Timeline for Demonstration zExisting members would have one year to present a plan and two years in which to implement the plan. zNew members would have to commit to process upon joining.

15. Next Steps zOfficial representatives provide feedback on workspace or by phone (Nov-Dec 04). zCPWG incorporates input from members (Jan 05). zApproval of pro-client principles by official representatives (Feb 05). zStatement finalized (Mar 05). zSEEP board approves (Jun 05). zMembers develop plan (Jun 06). zMembers implement plan (Jun 07).