consumersinternational

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.


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


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


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


G20 activities


G20 leaders’ Seoul Action Plan

G20 finance ministers communiqué


‘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


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


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


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.


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


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.


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.


www.consumersintenational.org


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