Responsible Finance Forum

Implementing the Client Protection Principles: A Technical Guide for Investors

Sarah Forster, Estelle Lahaye and Kate McKee
01 September 2009
Source:   Consultative Group to Assist the Poor (CGAP)

Client protection is a key tenet of microfinance. This is demonstrated by the extraordinarily large number of organizations that are endorsing the Client Protection Principles—a set of global principles aimed at ensuring microfinance clients are treated fairly and responsibly and do not become over-indebted. Although the Client Protection Principles are widely agreed upon, deeper implementation of the principles and ways of monitoring them, both at the microfinance institution (MFI) and funder level, are in the early stages of development. Microfinance providers and their supporters are actively looking for concrete and practical ways to implement the Principles more comprehensively.

This Guide offers simple and straightforward guidance and tools and resources for investors seeking to incorporate the Principles into their investment processes. It was compiled by CGAP, drawing on contributions from across the microfinance investor community. It presents seven recommended action steps, suggested approaches, and sample templates currently being used or being developed by investors and fund managers.