The unexpected outlawing, which took effect on 20 March, 2011, never affected the many IFA businesses in the UAE which are regulated under licence by the Insurance Authority.
One of the advisers who does not cold call clients, Sarah Lord, wealth planning director for the Middle East and Asia at Killik & Co, said: “I am yet to come across any evidence to suggest that the Central Bank ruling has completely stopped cold calls from companies with a banking licence as this would still seem to be common practice across UAE.”
She said she agreed with the ruling from the Central Bank but added: “I cannot see how they can enforce it. They are not monitoring every call made from these organisations and unless every person that receive a cold call reports it, they cannot control cold calling.”
“What continues to baffle many expats in the UAE is how the companies get hold of their telephone number in the first place to then be able to bombard them with calls until they crack and agree to a meeting,” she added.
“I heard that one of the bars in Dubai suspects that an individual is helping themselves to business cards put into their monthly business card draw glass on the bar. Such antics do not surprise me anymore.”
It is understood that the Central Bank was originally responding to numerous complaints from UAE residents about the number and manner of cold calling practised by Emirate banks keen to sell products and services.
In last year’s International Adviser story on the announcement of the ban, the circular sent to banks and finance companies stated: “It has been decided to prohibit marketing bank loans and other services offered to individual customers through direct contact by telephone.”
AES International chief executive Sam Instone noted then that for some advisory firms in the UAE that depend heavily on cold calling, the ban could be “a major deal”.
