consumersinternational.org the ci campaign on financial services 2010 - 2011

consumersinternational.org

The CI campaign on financial services

2010 - 2011

Consumers International• CI is the international federation of

consumer organisations.• Established in 1960 we have more

than220 members in 115 countries around the world.

• Financial services is a key concern for many of our members and CI’s work is built on their national experience and expertise.

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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

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Is there a crisis with financial consumer protection?High level of risk to the consumer justifies more effective regulation.• Complex products• Many ‘one-off’ decisions • Rapidly changing market• Major long term impacts

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CI campaign on Financial Consumer Protection

Call for the G20 to establish an Experts Group on:• Contracts and charges• Information design and disclosure• Gov. and functions of FCP bodies• Competition• Ongoing international co-operation

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G20 activities

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G20 leaders’ Seoul Action Plan

G20 finance ministers communiqué

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‘options to enhance protection for consumer finance’

‘common principles on financial consumer protection’

CI recommendations to the G20

• Information design and disclosure• Contracts charges and practices• The structure and functions of national

financial consumer protection bodies• Redress and dispute resolution systems• Promoting competition in financial

services

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CI recommendations to the G20

• Measures to promote stability and safety of consumers deposits and investments

• Access to basic financial services and the role of new forms of service

• Ongoing international co-operation on financial consumer protection including reviews of implementation

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CI input into the G20 process

• OECD /FSB consultation with CI members at CI congress (HK) and Transatlantic consumer dialogue (Brussels)

• Discussions with the French presidency of the G20

• Input into OECD draft principles

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Principles on financial consumer protection

• High level principles are addressed to G20 members and other interested economies.

• Ten principles cover most aspects of financial consumer protection.

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Report on Consumer Finance Protection

FSB report recommends:• An international organisation of

regulators to take the lead on global fcp• Work on institutional arrangements • Strengthening of supervisory tools

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G20 Cannes declaration

• Endorse the FSB and OECD principles. • Commit to the full application of

these principles in our jurisdictions • Request a report on progress to

upcoming Summits and develop further guidelines if appropriate.

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What next?

The Mexican presidency of the G20 has announced that it will:•Seek G20 support and resources for FinCoNet.•Set out a 24 month timetable for the development of guidelines for the implementation of the principles.

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