Pro-Client Principles:

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

2. Background of SEEP’s Involvement in Consumer Protection • 2001: Consumer Protection Task Force begins. • 2002: Task Force becomes Working Group and produces consumer protection template. • 2003: Publication of Trust through Transparency. Members task CPWG to develop a proactive stance for consumer orientation and protection. • 2004: 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 • Developed goal and objectives for the working group. • Secured funding from Ford Foundation for dissemination of Consumer Protection information. • Made 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) • Supported Microfinance Network (MFN) in drafting a pro-consumer pledge to be adopted by all 29 MFN members in November. • Conducted a survey of pro-client initiatives among SEEP members, MFIs and networks. • Facilitated a process leading to development of SEEP Pro-Client Principles.

6. SEEP Member Initiatives on Pro-Client Policies • FINCA Consumer-Oriented Ethical Statement • ACCION International Pro-Consumer Pledge • Freedom from Hunger Statement on Ethical Treatment of Clients • Concern Worldwide Policy on Ethical Treatment of Clients • Other: MFN, AMFIU, MFRC, MFF, Partner, Prizma With a potential to impact more than 10 million clients

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

8. Proposed Pro-Client Principles • Quality of Service • Dignified Treatment • Truthful and Transparent Information • Appropriate Pricing • Protection from Unethical and Illegal Practices • Privacy of Client Information

9. By accepting pro-client principles, SEEP members agree to: • Apply these principles in their own organizations. • Promote the widespread application of these principles among member implementing institutions. • Raise 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: • Provides collective examination from which emerges learning that advances professional development. • Increases program impact. • Fosters continuing innovation. • Informs the policy arena. • Promotes a pro-client approach by members and their affiliates or partners.

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

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

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

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

15. Next Steps • Official representatives provide feedback on workspace or by phone (Nov-Dec 04). • CPWG incorporates input from members (Jan 05). • Approval of pro-client principles by official representatives (Feb 05). • Statement finalized (Mar 05). • SEEP board approves (Jun 05). • Members develop plan (Jun 06). • Members implement plan (Jun 07).