Responsible Finance Forum

Good Practices for Financial Consumer Protection

Source: World Bank Group  

Over the past decade, financial consumer protection has become an increasingly mainstream priority. A strong consumer protection regime is key to ensuring that expanded access to financial services benefits consumers, enabling them to make well informed decisions on how best to use financial services, building trust in the formal financial sector, and contributing to healthy and competitive financial markets. The global financial crisis of 2008 highlighted the importance of financial consumer protection for the long-term stability of the world financial system. The need for financial stability, financial integrity, financial inclusion, and financial consumer protection objectives to complement one another has become an increasingly common theme highlighted by global policy makers in recent years.

The 2017 edition of the Good Practices is also specifically designed not as high-level principles, guidelines, or “best” practices. Rather, it is intended to serve as a practical, helpful collection of “good” practices in financial consumer protection, more detailed than principles or guidelines and drawing on successful practices seen around the world. The Good Practices consolidates, complements, and expands upon international principles and guidance—such as the Group of Twenty (G20) High-Level Principles on Financial Consumer Protection and accompanying Effective Approaches to Support Implementation, the International Association of Insurance Supervisors’ (IAIS) Insurance Core Principles and Application Paper on Approaches to Conduct of Business Supervision, as well as guidance from the G20/Organisation for Economic Co-operation and Development (OECD) Task Force on Financial Consumer Protection, the Basel Committee for Banking Supervision (BCBS), the International Organization of Securities Commissions (IOSCO), the International Organisation of Pension Supervisors (IOPS), the International Financial Consumer Protection Organization (FinCoNet), the International Network of Financial Services Ombudsman Schemes (INFO Network), the International Telecommunications Union Telecommunications Standardization Sector (ITU-T) Focus Group Digital Financial Services, and many others.