The 2011 AFI Global Policy Forum
Consumer Empowerment and Market Conduct (CEMC)
working group meeting
27 September, Riviera Maya, Mexico
The CEMC WG from Malaysia to Mexico
> 18 member organizations
established CEMC WG
> Set objective
> Identified 4 priority areas
> Agreed on content for charter and
concept note
> Agreed to undertake member survey
> Set up coordination group
> Agreed on content for work plan
> Charter and concept note drafted
> Survey undertaken
> Coordination group functioning
> 18 member organizations
represented in the second meeting
> CEMC is activated
> The CEMC WG has a logo
> and a work space: AFI Member Zone
Launch: KL, 7 April 2011
Second meeting: RM, 27 Sept 2011
28 AFI members represented in the CEMC WG
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Banco Central del Paraguay
Banco Central do Brasil
Banco Nacional de Angola
Bank al-Maghrib
Bangko Sentral ng Pilipinas
BCEAO
Bank Indonesia
Bank Negara Malaysia
Bank of Thailand
Bank of Uganda
Bank of Zambia
Banque Centrale de la Rép. de Guinée
Banque Centrale du Congo
Central Bank of Armenia
Central Bank of Kenya
Central Bank of Liberia
> Central Bank of Tanzania
> CNBV, Mexico
> Ministère de l’Economie et des Finances du
Senegal
> Ministry of Economic Development and
Trade, Russia
> National Bank of Rwanda
> National Credit Regulator, South Africa
> Palestine Monetary Authority
> People’s Bank of China
> Reserve Bank of Malawi
> State Bank of Pakistan
> Superintendencia de Peru
> Superintendencia de Guatemala
New members in yellow/green
Agenda
Time
Item for discussion
Welcoming remarks and meeting kick-off
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9.00 – 9.30
9.30 – 10.30
Review of the agenda and meeting goals
Review of preparatory documents
Updating each other on country initiatives
CEMC WG members survey

Presentation and discussion of intermediate results of the CEMC WG survey
10.30 – 11.00 Coffee break
The G20 High-level Principles on Financial Consumer Protection and their implementation
11.00 - 12.00
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Discussion of impact of the Principles on the work of the CEMC WG members and the possible role of the CEMC in
their implementation
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Election of CEMC WG chairperson (and eventually a co-chair)
Announcement of new chairperson
Discussion and approval of CEMC WG seminal documents (concept note and charter)
Governance
12.00 – 12.30
12.30 – 12.45
Presentation of CEMC WG sessions at 2011 AFI GPF

Relevance of the sessions and role of CEMC WG members
12.45 – 14.00 Lunch
Agenda setting and operazionalization
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14.00 – 15.00
14.00 – 15.45
Presentation of proposed log-frame
Discussion of the CEMC WG expected outcomes and outputs
Creation of subgroups
Sub-groups discussions
15.45 – 16.00 Coffee break
Next steps
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16.00 – 17.00
Closing
Finalization of log-frame
Finalization of work plan (division of labor between subgroups, participation in relevant events, etc.)
Agenda and logistic for the next meeting
Priority areas
MARKET CONDUCT
> i) transparency and disclosure
> ii) sales and marketing practices
CONSUMER EMPOWERMENT
> iii) avenues for help and redress
> iv) financial literacy, capability and awareness
CEMC WG’s objectives
> To promote the adoption of evidence based policy and regulatory
solutions for the empowerment and protection of financial
consumers, which is also correlated with improving access to finance
and the quality of financial inclusion
> To develop a set of core principles/guidelines for financial consumer
empowerment and protection policymaking
> To support the design and validation of tools for policy analysis and
policymaking for use by working group members
Meeting goals
> To present the preliminary results of the members’ survey and agree
on the next steps
> To discuss the potential role in the implementation of the G20
Principles
> To elect the chairperson
> To approve the charter and concept note
> To find agreement on the expected outcome and outputs
> To establish subgroups
> To design the CEMC WG’s log-frame
> To revise the work plan
Preparatory documents
> First meeting minutes and list of participants
> Second meeting agenda
> Second meeting participants list
> Consolidated results of CEMC WG survey
> Draft CEMC WG concept note
> Draft CEC WG charter
> Draft G20 High-level principles on financial consumer protection
Members’ update
> Central Bank of Uganda visited Mexico and Peru and released new
National Framework on Financial Literacy and Financial Consumer
Protection
> Koid Swee Lian, AFI Policy Champion and CEMC WG founder, appointed
CEO of the Malaysia AKPK
> Others?
Session I
CEMC WG members survey
Preliminary results
> Scope of the analysis
> Survey objectives
> Respondent demographics
> Preliminary results and observations
> Survey trends
> Roadmap to good policy practices
CEMC WG survey: scope of the analysis
Good
policy
practices
Gather
respective
market data
Self-diagnose
priority
policy
objectives
Survey peers to determine
common practices and
challenges
Measure impact
of policies and
regulations on
market and
consumers
CEMC WG survey: objectives
> To gain a better understanding of WG members experiences, current
plans, and challenges ahead related to the WG’s four priority areas
> To provide a foundation from which WG members can self-diagnose
their respective policy approaches, to determine how to best enable
safe and sustainable policy and regulatory frameworks for financial
inclusion
> To inform the development of a road map towards good policy
practice for consumer empowerment and market conduct
CEMC WG survey: respondents demographics
Africa
Angola
BCEAO
RD Congo
Kenya
Malawi
Senegal
Uganda
Zambia
Guatemala
Mexico
Total
Paraguay
Peru
Palestine
Armenia
China
Philippines
17
LAC
MENA
ECA
Russia
17
countries
11
central
banks
3
3
banks
ministries
regulators
2 billion
people
NUMBER OF AGENCIES WITH RESPONSIBILITY
CEMC WG survey: demographics
> 45 (average 2.6 per country)
> Mostly central banks and ministries, but also capital market
authorities, insurance authorities, consumer protection agencies, and
few microfinance authorities
Responding Country Agency 1
Agency 2
Angola
Banco Nacional de Angola
China
DR Congo
Guatemala
Kenya
Malawi
Mexico
Instituto Nacional de Defesa do Consumidor
(INADEC)
State Administration for Industry
&Commerce
Banque Centrale du Congo
Dirección de protección al consumidor
(Ministerio de Economía)
Central Bank of Kenya
Capital Markets Authority
Agency 3
Agency 4
Retirement Benefits Authority
Insurance Regulatory Authority
Reserve Bank of Malawi
Central Bank (BANCO DE MEXICO)
Palestine
Paraguay
Peru
Palestine Monetary Authority
Philippines
Republic of
Armenia
Russian
Federation
Senegal
Bangko Sentral ng Pilipinas
National Banking and Securities Commission National Commission for the Protection of
(CNBV)
Users of Financial Services (CONDUSEF)
Banco Central del Paraguay
Instituto Nacional de Cooperativismo
Ministerio de Industria y Comercio
Department of Products and Services to
National Institute for the Defense of
Competition and Intellectual Property
Protection (Indecopi)
Securities and Exchange Commission
Financial Ombudsman Service
Philippine Deposit Insurance Corporation
Insurance and Surety National Commission
(CNSF) / Institute for the Protection of
Banking Savings (IPAB)
Insurance Commission
Central Bank of Armenia
Federal Service on Consumers' Rights
Ministry of Finance of the Russian Federation Ministry for Economic Development of the
Russian Federation
Federal Financial Markets Service
Direction de la microfinance (DMF)
Banque Centrale des Etats de l'Afrique de
l'Ouest (BCEAO)
Observatoire de la Qualité des Services
Financiers (OQSF)
Uganda
Direction de la Réglementation et de la
supervision des systèmes financiers
décentralisés (DRS-SFD)
Bank of Uganda
Capital Markets Authority
Uganda Insurance Commission
Ministry of Finance, Planning and Economic
Development, Department of Microfinance
WAEMU - UEMOA
Central Bank of West African States (BCEAO) Banking Commission
Zambia
Bank of Zambia
Pensions and Insurance Authority
Microfinance Departments of Ministers of
Finances
Securities and Exchange Commission
Competition and Consumer Protection
Commission
CEMC WG survey: categories
INSTITUTIONAL LANDSCAPE
> Mandate
> Interagency coordination
> Consultative approach
MARKET CONDUCT
> Regulation
> Oversight
> Remedial actions
> Enforcement
> Self-regulation
> Transparency and disclosure
> Sale and market practices
> Ancillary areas
CONSUMER EMPOWERMENT
> Avenues for help and redress
> Financial literacy, capability and awareness
MANDATE – MARKET CONDUCT
What are the main functions of the agencies?
Most commonly, the involved
agencies cover the three
functions: regulating,
supervising, and enforcing
market conduct regulation
Often the legal basis is the
central bank law and the
banking law. In a few cases the
mandate is embedded in the
constitution
MANDATE – CONSUMER EMPOWERMENT
What are the main functions of the agencies?
Agencies answer consumer
queries and often play a role in
delivering programs to increase
consumer’s awareness. Debt
counseling is commonly left to
specific agencies.
PARTICIPATIVE APPROACH
Do advocacy groups have a formal role?
In designing
and
implementing
consumer
empowerment
policies and
market
conduct regs
Financial
education
Consumer advocacy organisations
play a fairly limited role in the
policymaking and regulatory process.
In nearly 50% of the countries,
consultation with consumer advocacy
groups play no role.
Only in two countries the advocacy
groups have a further role helping
consumers to file complains.
In less than 30% of the countries they
have any formal roles,
responsibilities, or duties related to
consumer education
LANDSCAPE
The two main weaknesses and priorities over the next year
The assessed primary weaknesses in
the financial sector are
overwhelmingly:
- the limited access to (formal)
financial products; and
- the low level of financial literacy.
This doesn't imply that each area not flagged
by a country is necessarily fully satisfactory.
In terms of priorities, the dominant
priority is to increase financial
literacy. The second is to increase
protection for bank clients (only ½
the level of support as for financial
literacy).
MARKET CONDUCT – LEGAL BASIS
What legal documents govern market conduct regulation?
Relevant legal provisions are
most often found in either general
consumer protection legislation or in
financial sector regulations.
Market conduct provisions are
diffused in multiple laws.
Most countries do not have
specific legislation for financial
consumer protection.
Combining these answers with other
questions, likely other legal acts (on
payment systems, credit bureaus,
insurance, pensions, and securities)
may include market conduct
provisions; and these laws often
contain conflicting provisions.
MARKET CONDUCT
Which products and providers are covered?
Formal lenders and deposit
takers are likely to be
regulated.
Not the market of mobile
financial services. Why?
Hypothesis:
a) it’s less risky
b) it’s too new – there is no
sectoral regulation
MARKET CONDUCT
Which areas are covered?
The focus of market conduct
regulations is on disclosure of
the cost of financial services.
A minority of countries also
provide for complaints handling
and redress mechanisms and
for disclosure in advertising.
However, almost all areas are covered, so there are a
number of members from whom lessons can potentially be
learned.
MARKET CONDUCT – OVERSIGHT
What market conduct oversight activities can be undertaken?
Limited use of specific
market conduct oversight
techniques such as media
monitoring and mystery
shopping. Why?
MARKET CONDUCT – OVERSIGHT
Number of inspections conducted in one year
In-site
Although on- and off-site inspections are
the primary compliance monitoring
tools, 65% of countries does not have a
specific audit or inspection programme
for consumer protection monitoring.
This may be an area where substantial
improvement can be made in the short
term.
Off-site
Is there a specific checklist or auditing program
that focuses on consumer protection issues?
MARKET CONDUCT – OVERSIGHT
Dedicated staff
Are there dedicated staff responsible for market
conduct supervision at any of the agencies you
identified in question 1?
In half of the countries the answer is
positive
Is market conduct supervision a general duty of
supervisory staff (e.g. banking department) in the
course of normal inspections?
In more than 80% of the countries,
yes. This could be a point of
consensus in making future
recommendations (w development
of adequate tools)
MARKET CONDUCT – REMEDIAL AND ENFORCEMENT ACTIONS
What is the nature of the enforcement action?
In most countries, remedial
action on consumer protection
issues is limited to letters of
warning, although 65% of
countries does have the power
to issue monetary fines for noncompliance.
Number of times this action of this type was taken in 2010
Your answers seem to indicate
that 55% of the countries have
issued between 1 and 5 fines
for market conduct compliance
Surprisingly high
MARKET CONDUCT – SELF-REGULATION
Standards/codes of conduct
Are there industry codes of conduct in your
country which identify specific market conduct
standards?
If so, has the regulator endorsed the code of
conduct?
And, is there a self-regulatory body (or bodies) that
is responsible for enforcing of the standards?
The majority of the countries
have codes of conduct.
In those cases, the regulators
has often endorsed the code,
which is enforced by a thirdparty.
MARKET CONDUCT – SELF-REGULATION
Standards/codes of conduct
The codes of conducts probably refer mostly to banking codes of conduct (followed
by insurance).
It seems that the codes mostly deal only with generic issues, and not with specific
consumer protection issues.
Which products/services are covered?
What areas are covered?
What providers are required to comply?
What types of providers have to comply with
the standards or codes of conduct?
MARKET CONDUCT – PRICING, TRANSPARENCY & DISCLOSURE
Does your country have transparency & disclosure regulations?
Does your country have transparency and disclosure
regulations?
Is a specific format mandated for loan documentation?
Is there a standard template for either the
disclosures or the contract that is
endorsed by the regulator?
Most countries do have some
form of transparency
regulation, mostly focused on
interest or cost calculation.
However, there is no uniform
approach in calculating the
cost of credit (see next slide)
Only a minority of countries
have a requirement for
standard pre-agreement
disclosure for financial service
contracts.
This may require attention in conforming
to the G20 principles.
MARKET CONDUCT – PRICING
Price calculation formula mandated for credit products
What specific charges and fees are included in the formula?
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE - DEPOSIT AND SAVINGS PRODUCTS
What information is required to be disclosed to the client?
(Before Sale *)
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – CREDIT PRODUCTS
What information is required to be disclosed to the client?
(Before Sale *)
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – MONEY TRANSFERS
What information is required to be disclosed to the client?
(Before Sale *)
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – PAYMENT SERVICES
What information is required to be disclosed to the client?
(Before Sale *)
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – E-MONEY
What information is required to be disclosed to the client?
(Before Sale *)
MARKET CONDUCT – PRICING AND TERMS AND CONDITIONS OF COMPARABLE PRODUCTS/PROVIDERS
Is the information provided to consumers?
Around 50% of countries publish
some comparative information
on the pricing or terms and
conditions of financial services.
This is mostly published in the
central bank website.
If yes, where?
If it is recognized the
importance of this information
for customers, how to make it
available to the majority of
the clients?
MARKET CONDUCT – TRANSPARENCY AND DISCLOSURE
Continuing information to customers
Is the provider required to provide periodic
information to the client regarding their
deposits/savings?
If yes, what is the due communication?
Around 75% of countries require periodic disclosure of
information on deposit or savings accounts, mostly
through disclosure in account statement
MARKET CONDUCT – TRANSPARENCY & DISCLOSURE
What are two main priorities for the next year?
53%
To ensure transparency
and effective disclosure in
transactions with banks
29%
To identify cost-effective
tools to provide to the
public information on
pricing and terms and
conditions of comparable
products/providers
MARKET CONDUCT – SALES AND MARKETING PRACTICES
Is there any regulations for sales and marketing practices?
More than 40% of
countries have no
regulation on sales
and marketing
practices.
MARKET CONDUCT – SALES AND MARKETING PRACTICES
What conducts and providers are regulated?
Restrictions to prevent
personal data related to a
consumer from being shared
with external parties
Obligation to verify credit
history of consumer before
selling a credit product
Obligation to verify repayment
capacity of the consumer
before selling a credit product
Prohibition of unfair, deceptive
or aggressive practices
Suitability of products and
services for the consumer
Prohibition on reckless lending
It seems that banks and NBFIs
covered similarly
MARKET CONDUCT – SALES AND MARKETING PRACTICES
Is there any regulatory provision that mandates
the provider:
To train staff on responsible sales practices
To supervise staff on responsible sales practices
To what providers does this apply?
MARKET CONDUCT – SALES AND MARKETING PRACTICES
The two main priorities for the next year
Suitability of products
and services for the
consumer
Obligation to verify
repayment capacity of
the consumer before
selling a credit product
Obligation to verify
credit history of
consumer before selling
a credit product
MARKET CONDUCT – ANCILLARY AREAS
Credit bureaus
Credit information sharing and credit bureaus: Describe the nature of credit
information sharing, in relation to the statements below.
Many countries have
implemented credit
information sharing
initiatives, although
participation is
mostly limited to
banks. In most cases
MFIs are not included
in the credit bureau
system (see next).
MARKET CONDUCT – ANCILLARY AREAS
Credit bureaus
For "These institutions report information to the
credit bureau", please select :
For "These institutions have access to the
collected information", please select :
MARKET CONDUCT – ANCILLARY AREAS
Abusive clauses
Abusive clauses: Is there any clause, term, or condition that,
if inserted in a contract, is automatically considered void or
“deemed unwritten”?
Only a minority of
countries have any
specific limitations
on unfair contract
terms. This may be
an area where
significant
improvement is
possible.
MARKET CONDUCT
The main priorities for the next year
In your country, what are the four main priorities for the next year
for enhancing market conduct policy and regulatory framework?
Please select up to four priorities, with 1 being the highest priority.
CONSUMER EMPOWERMENT
Complaint handling and redress mechanisms
Do consumers have access to affordable and
efficient complaint handling and redress
mechanisms in your country?
Is the access to affordable and efficient
complaint handling and redress mechanisms a
statutory right in your country?
CONSUMER EMPOWERMENT
Complaint handling and redress mechanisms
For each of the help and redress mechanisms listed in the table
below, indicate whether a solution is in place.
CONSUMER EMPOWERMENT
Complaint handling and redress mechanisms
What types of clients can file a complaint?
CONSUMER EMPOWERMENT
Complaint handling and redress mechanisms
The decisions of the regulators and/or ombudsmen
binding upon
CONSUMER EMPOWERMENT - DEBT COUNSELING
Is there any agency that offers debt counseling?
CONSUMER EMPOWERMENT
Complaint handling and redress mechanisms
In your country, what are two main priorities for the next to provide
consumers access to affordable and efficient complaint handling and redress
mechanisms? Please select up to two priorities.
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
Is there a national strategy to enhance the
financial literacy, capability and awareness of
consumers?
Does the regulator have a statutory responsibility to
promote consumer literacy, capability and
awareness with respect to financial services?
Does the regulator undertakes programmes
to promote consumer literacy, capability
and awareness with respect to financial
services?
Is there a special unit or dedicated staff responsible
for financial consumers’ literacy, capability, and
awareness?
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
Please indicate whether any of the following
instruments are used to promote financial
consumer literacy, capability and awareness by
the financial sector regulator or another
government agency:
Please indicate whether any of the following
instruments are used to promote financial
consumer literacy, capability and awareness by
the financial institutions:
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
Has the level of financial literacy in your country
been formally measured?
CONSUMER EMPOWERMENT – STRATEGIES, MANDATES, and TOOLS
Do financial consumers’ literacy, capability, and awareness
programs target unbanked or low-income people?
MARKET CONDUCT
Has your institution ever evaluated the effectiveness of its
financial literacy, capability, and awareness initiatives?
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
What constraints and limitations keep your institution from
promoting financial literacy, capability, and awareness?
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
Over the next year, what are the main priorities for your
country in reference to financial consumers’ literacy,
capability and awareness?
CONSUMER EMPOWERMENT
Strategies, mandates, and tools for financial literacy
> No clear mandate
> A few countries have clear strategies
> But you all are doing that!
> Without a baseline
> Using different tools, implementing many different projects
> But without knowing their effectiveness
> With lack of financial resources (for the reasons above?)
> And scarce collaboration with private sector and advocates groups
Session II
G20 High-level principles on
financial consumer protection
> Impact on CEMC WG members
> Possible role of the CEMC WG in the implementation of the principles
Purpose of the session
Present
> Overview of the G20 Principles on Financial Consumer Protection
Comment from members of the Working Group
> Any areas of the G20 Principles which may be difficult to implement;
> or is inconsistent with reality in particular countries;
> or is silent on an aspect of consumer protection which is a pressing
concern?
Views and suggestions
> What next? Any issues to take forward? How? Level of priority?
Framework for Principles
What are the objectives of financial consumer protection?
What are the objectives of the G20 Principles?
> Covering all areas of financial services
> Consumer confidence in financial services, to promote growth &
stability
> Respond to: Increased transfer of risk to consumes; complexity of
products;
> Rapid changes & new (non-bank) providers & intermediaries
> While financial access & literacy remain low
> Voluntary principles, designed to complement sector-specific
guidelines (IOSCO / BSBS / IAIS)
> Principles may need to be adapted to national or sectoral
circumstances
Draft Principles – 1
1. Legal & Regulatory Framework
> “integral part of the legal & regulatory framework”
> “legal & judicial mechanisms to protect against financial fraud &
abuses”
> Appropriate regulation & supervision of service providers, agents &
advisors
> Consultation with industry, consumer bodies, professional bodies &
research institutions
2. Role of oversight bodies
> “Must be oversight bodies with explicit responsibility for financial
consumer protection”
> Independence, accountability, resources, powers …
> Mechanism for effective cooperation between oversight bodies
Draft Principles
3. Equitable & fair treatment for consumers
> “Should be part of the corporate culture of financial service
providers
> “Similar protection for similar products & services
> “Special attention to vulnerable groups
4.
>
>
>
>
>
Disclosure & transparency
“Provide key information on benefits, terms, risks, costs
“intermediary remuneration & conflicts
“Standard pre-contractual disclosure promoted
Health warnings (& information) on risky products
Requirements on providers of advice
Draft Principles
5.
>
>
>
>
Financial Education & Awareness
“Promote education & awareness
Information on consumer rights easily accesible
Recommend implementation of OECD Guidelines & Principles
Special focus on vulnerable groups
6. Responsible business conduct of Financial Service Providers &
their agents
> “Providers accountable for action of their agents
> Objective of engagement with consumers: “best interest of clients”;
“assess capabilities & needs of clients”, before providing products
or services
> Staff properly trained
> Avoid / disclose conflicts of interest
> Remuneration structure encourage responsible business conduct
Draft Principles
7. Protection of Consumer Rights
> “Protect rights to deposits, savings & similar products
> High degree of certainty; appropriate mechanisms
8.
>
>
>
Protection of consumer data & privacy
“Through appropriate mechanisms
Define purpose of collection; processing & disclosure
Right of consumers to be informed (of data sharing), have access
their data; data corrected or deleted
Draft Principles
9.
>
>
>
>
Complaints handling
“Redress mechanisms … accessible, cheap, effective etc.
Publish complaints statistics
Providers & agents to provide first line of complaints & redress
Independent process available of not resolved
10. Competition
> “National & international competitive markets, for choice & price
competition
> Allow consumers to search & switch
Draft Principles
Principles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Legal & regulatory framework
Oversight bodies
Equitable & fair treatment
Disclosure & transparency
Education & awareness
Responsible Business Conduct
Protection of consumer rights
Protection of data & privacy
Complaints handling
Competition
????
 Any of these inappropriate?
 Any important issues missing?
 Conflict with financial
inclusion?
 Challenges in implementation?
… what next?
Related developments to consider
FSB: “Consumer Finance Protection
- consumer credit & mortgages
- financial stability aspects
- assessment of current practices
• Implications?
Issues:•
•
•
Current consumer protection frameworks in credit &
“consumer protection authorities”
Engaging with consumer advocacy groups
Competing objectives (prudential / protection); Independence
& accountability
Enforcement
Complaints & dispute resolution
•
•
•
•
Responsible mortgage lending practices = main issue
Product regulation
Unfair selling practices
Disclosure & transparency
•
•
• Concerns?
• Suggestions?
Any other issues in this respect?
• ????
What
• ????
• ????
• ????
To
Do?
Session III
CEMC WG’s Governance
> Election of CEMC WG chairperson
> Announcement of new chairperson
> Discussion and approval of CEMC WG seminal documents
Governance
ELECTED CHAIR
> Bangko Sentral ng Philipinas
ELECTED CO-CHAIR
> Central Bank of Uganda
SEMINAL DOCUMENTS
> The CEMC WG members approve the charter and concept
note
Session IV
CEMC WG’s sessions at the
2011 AFI GPF
> Session on financial literacy
> Session on transparency
Thursday, 29 September, 17.00h – 18.30h
Financial literacy and financial inclusion
FACILITATOR
> Ahmed Dermish, BFA
PANELISTS
> Bipin Nair, Reserve Bank of India
> Giovanna Priale, SBS Peru
> (TBC)
SESSION OBJECTIVES
> To increase understanding of the relationship between financial literacy
and inclusion
> To gain a better understanding of the role of policymakers/regulators
> To identify cost-effective tools to increase the level of literacy
> To provide input into the AFI CEMC WG’s work on this topic
FORMAT
> Advisory teams
Friday, 30 September, 9.30h – 10.45h
Improved transparency standards for financial inclusion
MODERATOR
> Shaun Mundy
PANELISTS
> Antoine Traore, BCEAO
> Hastings Mzoma, Central Bank of Malawi
> Belinda Caraan, Bangko Sentral ng Philipinas
> Gaiv Tata, the World Bank
> Katherine McKee, CGAP
> Gabriel Davel, AFI Associate
SESSION OBJECTIVES
> To identify key issues in pricing and transparency
> To discuss regulatory approaches and good practices re: transparency
> To provide input into the AFI CEMC WG’s work on this topic
FORMAT
> Talk show
Session V
Agenda setting and
operationalization
> Presentation of proposed log-frame
> Creation of subgroups
Log-frame: template
Intervention
logic
Impact/Goal
Outcomes
Outputs
Activities
What should it show:
Change of state and improved
situation
Situational or behavior change
or improvement that is
necessary to reach the impact
The tangible products, services,
and results delivered which
needs to be achieved to bring
about the outcome
Tasks that have to be
undertaken to deliver the
desired outputs
It answers the question:
What is our vision of the future?
Where would we like to get to in
the next 5 years?
What are the main things that
need to be delivered (in the
next year) by the working group
to achieve the vision?
What needs to be done to
deliver each of these outputs?
Subgroups
5 subgroups
Transparency
and disclosure
Sales and
marketing
practices
Avenues for
help and
redress
Financial
education
Harmonization
of guidelines
Guatemala
Peru x
BCEAO
China
Uganda
Tanzania
Palestine x
Philippines
Liberia x
Russia
Senegal
Pakistan x
RDC
Mexico
Malawi
Angola
Armenia x
Thailand
Paraguay
Zambia
x = focal point
Session VI
Sub-groups discussions
> Discussion of expected outcomes and outputs
> Discussion of work plan
Session VII
Next steps
> Finalization of log-frame
> Finalization of work plan
> Agenda and logistic for the next meeting
CEMC WG’s log-frame
Goal
Outcome
Outputs
Activities
4 priority
areas

Improved capacity of policymakers to design and implement effective policies to protect
and empower consumers
 Guidelines on four priority areas for Consumer Empowerment and Market Conduct endorsed
by AFI network members
 Relevant international frameworks (standards, principles, etc.) are better harmonized
 CEMC WG members recognized as leaders in consumer empowerment and market conduct
 Developed evidence based policymaker’s guidelines in four priority areas
 Produced report on country experiences
 Improved capacity of CEMCWG members to assess and analyze solutions and mechanisms for
consumer protection and market conduct
 Identified and documented cost-effective tools that deliver information and enable redress
for the poorest segment of the population
 Increased awareness among other policymakers and international stakeholders about
CEMCWG lessons and solutions
 Develop and complete stocktaking survey
 Conduct Knowledge Exchange visits between CEMC WG members
 Undertake diagnostic study on selected CEMC WG members countries
 CEMCWG members present experiences and lessons learned in selected external forums
 Hold peer learning workshop on diagnostic tools and methodologies, and policy solutions,
with strategic partners
 Peer reviews of draft policies and regulations
 Transparency and disclosure
MARKET CONDUCT
 Sales and marketing practices
 Avenues for help and redress
CONSUMER EMPOWERMENT
 Financial education
Transparency and disclosures subgroup’s log-frame

Outputs


Developed evidence based policymaker’s guidelines in the area of transparency, with focus
on cost-effective access to disclosed information (e.g. re: channels, standard contract for
basic products, code of conducts, comparable information of basic products)
Produced report on transparency based on the results of the stocktaking survey
Identified and documented cost-effective tools that deliver information, also for the
poorest segment of the population
Activities



Analyze transparency section of the stocktaking survey
Identify common challenges and good practices
Undertake diagnostic study on selected CEMC WG members countries
Members





Superintendencia de Guatemala
Superintendencia de Peru (coordinator)
BCEAO
People’s Bank of China
Central Bank of Uganda
Sales and marketing practices subgroup’s log-frame

Outputs


Developed evidence based policymaker’s guidelines in the area of sales and marketing
practices
Produced report on sales and marketing practices based on the results of the stocktaking
survey
Identified and documented cost-effective tools that deliver information, protect, and
empower consumers, also for the poorest segment of the population
Activities



Analyze sales and marketing practices section of the stocktaking survey
Identify common challenges and good practices
Undertake diagnostic study on selected CEMC WG members countries
Members



Central Bank of Tanzania
Palestine Monetary Authority (coordinator)
Bangko Sentral ng Philippinas
Help and redress subgroup’s log-frame


Outputs

Developed evidence based policymaker’s guidelines on help and redress mechanisms
Produced report on avenues for help and redress mechanisms based on the results of the
stocktaking survey
Identified and documented cost-effective tools that protect and empower consumers
providing access to cost-effective help and redress mechanisms, also for the poorest
segment of the population
Activities



Analyze relevant section of the stocktaking survey
Identify common challenges and good practices
Undertake diagnostic study on selected CEMC WG members countries
Members



Central Bank of Liberia (coordinator)
Ministry of Economic Development of Russia
Ministere de Finances du Senegal
Financial education subgroup’s log-frame

Outputs


Developed evidence based policymaker’s guidelines on financial education, with focus on
the development of national strategies
Produced report on financial education based on the results of the stocktaking survey
Identified and documented cost-effective tools that deliver financial education, also for the
poorest segment of the population
Activities



Analyze relevant section of the stocktaking survey
Identify common challenges and good practices
Undertake diagnostic study on selected CEMC WG members countries
Members





State Bank of Pakistan (coordinator)
Banque Centrale du Congo
CNBV Mexico
Reserve Bank of Malawi
National Bank of Angola
Harmonization of guidelines subgroup’s log-frame

Identified and documented problems with concurrent internationally adopted frameworks
(of standards, principles, and indicators) used to assess consumer empowerment policies
and market conduct regulations in AFI member countries
Activities



Analyze relevant frameworks
Identify common challenges due to the co-existence of concurrent frameworks
Provide guidance to the other 4 CEMC WG sub-groups
Members




Central Bank of Armenia (coordinator)
Central Bank of Thailand
Banco Central do Paraguay
Bank of Zambia
Outputs