European Code of Good Conduct for Microcredit Provision

This European Code of Good Conduct for Microcredit Provision provides a set of standards in terms of management, governance, risk management, reporting, and consumer and investor relations that are common to the microcredit sector in the European Union (EU). These standards aim to benefit customers, investors, funders, owners, regulators and partner organisations.

The development of the Code was based on the recognition that there was a need for a unifying set of expectations and standards that was common to the sector, in light of the disparate regulatory frameworks in which microcredit providers in the EU operate. The Code:

• Sets out good practice guidelines to enable the sector to face challenges of accessing long-term finance, maintaining and raising the quality of services, and moving towards sustainability;
• Aims to help microcredit provider board members, stakeholders and managers in improving the operation of the sector;
• Aims to help customers ensure that they are treated in a fair and ethical way;
• Ensures that the sector operates with transparent and pan EU reporting standards;
• Reassures regulators that the sector operates according to sound business practices and principles, and that it is well governed.