Consumers for fair, safe and
competitive financial services
consumersinternational.org
Is there a crisis with financial
consumer protection?
• Weak financial consumer
protection a key catalyst of
the financial crisis
• An ongoing issue of concern
for many consumers in all
countries.
• 150 million new consumers of
financial services every year
consumersinternational.org
Is there a crisis with financial
consumer protection?
High level of risk to the
consumer justifies more
effective regulation.
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Complex products
Many ‘one-off’ decisions
Rapidly changing market
Major long term impacts
consumersinternational.org
The international response?
Global nature of the problem
justifies an international solution,
however:
• G20 - very little reference to
consumers
• International co-operation is very
limited
• World Bank work is an exception
consumersinternational.org
CI campaign on Financial
Consumer Protection
Call for the G20 to establish an
Experts Group on:
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Contracts and charges
Information design and disclosure
Gov. and functions of FCP bodies
Competition
Ongoing international co-operation
consumersinternational.org
Contracts and charges
• Restrict excessive complexity
• Consumers should be able to review
contracts before signing
• Consumer protections should be nonwaivable.
• Fees and costs should be fair and
reasonable
consumersinternational.org
Information design and
disclosure
• Information should be comprehensive,
pertinent, transparent and designed to meet
consumer needs
• There should be regular statements on the
performance of the products
• Financial service providers should provide
full disclosure to relevant regulators
consumersinternational.org
Financial consumer
protection bodies
• Independence from FS industry and a
balance of consumer and industry
expertise.
• The right to develop appropriate
regulations, conduct investigations,
require changes in policies and practice
and require appropriate redress.
consumersinternational.org
Competition
• Promote the ability of consumers to
‘switch’ providers.
• Protection against ‘tying in’.
• Low barriers to entry
• Innovation
• Breaking up the banks?
consumersinternational.org
International
co-operation
• Regulators around the world face similar
challenges
• There are international bodies for
insurance, securities, pensions but not
financial services
• The current loose network needs to be
given the resources to do an effective job.
consumersinternational.org
G20 activities
consumersinternational.org
G20 Seoul Action Plan
Enhancing consumer protection: we asked the FSB
to work in collaboration with the OECD and other
international organisations to explore, and report
back by the next summit, on options to advance
consumer finance protection through informed
choice that includes disclosure, transparency and
education; protection from fraud, abuse and
errors; and recourse and advocacy.
consumersinternational.org
Next steps
• CI and members’ involvement in
the FSB process
• French presidency of the G20
• International standards (ISO)
• Competition
• Financial inclusion
consumersinternational.org
www.consumersintenational.org
consumersinternational.org