afi cemc wg - second meeting - presentation sdc

The 2011 AFI Global Policy ForumConsumer Empowerment and Market Conduct (CEMC)working group meeting

27 September, Riviera Maya, 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

The CEMC WG from Malaysia to Mexico

Launch: KL, 7 April 2011

> 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

ZoneSecond meeting: RM, 27 Sept

2011

> 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

28 AFI members represented in the CEMC WG

Time Item for discussion

9.00 – 9.30

Welcoming remarks and meeting kick-off Review of the agenda and meeting goals Review of preparatory documents Updating each other on country initiatives

9.30 – 10.30CEMC WG members survey

Presentation and discussion of intermediate results of the CEMC WG survey10.30 – 11.00 Coffee break

11.00 - 12.00The G20 High-level Principles on Financial Consumer Protection and their implementation

Discussion of impact of the Principles on the work of the CEMC WG members and the possible role of the CEMC in their implementation

12.00 – 12.30

Governance 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)

12.30 – 12.45Presentation of CEMC WG sessions at 2011 AFI GPF

Relevance of the sessions and role of CEMC WG members12.45 – 14.00 Lunch

14.00 – 15.00

Agenda setting and operazionalization Presentation of proposed log-frame Discussion of the CEMC WG expected outcomes and outputs Creation of subgroups

14.00 – 15.45 Sub-groups discussions15.45 – 16.00 Coffee break

16.00 – 17.00

Next steps 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

Closing

Agenda

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

Priority areas

>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

CEMC WG’s objectives

>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

Meeting goals

>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

Preparatory documents

>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?

Members’ update

Session ICEMC WG members

survey

Preliminary results

> Scope of the analysis> Survey objectives

> Respondent demographics> Preliminary results and observations

> Survey trends> Roadmap to good policy practices

Survey peers to determine common

practices and challenges

Self-diagnose priority policy

objectives

Gather respective

market data

Measure impact of

policies and regulations on market

and consumers

Good policy

practices

CEMC WG survey: scope of the analysis

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

17 Total

AngolaBCEAO

RD CongoKenya

MalawiSenegalUgandaZambia

GuatemalaMexico

ParaguayPeru

PalestineArmenia

ChinaPhilippines

Russia

Africa

LAC

MENA

ECA

17 countries

11central banks

3banks

regulators

3ministrie

s

2 billionpeople

CEMC WG survey: respondents demographics

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 Agency 3 Agency 4

Angola Instituto Nacional de Defesa do Consumidor (INADEC)

Banco Nacional de Angola

China State Administration for Industry &Commerce

DR Congo Banque Centrale du Congo

Guatemala Dirección de protección al consumidor (Ministerio de Economía)

Kenya Central Bank of Kenya Capital Markets Authority Retirement Benefits Authority Insurance Regulatory Authority

Malawi Reserve Bank of Malawi

Mexico Central Bank (BANCO DE MEXICO) National Banking and Securities Commission (CNBV)

National Commission for the Protection of Users of Financial Services (CONDUSEF)

Insurance and Surety National Commission (CNSF) / Institute for the Protection of Banking Savings (IPAB)

Palestine Palestine Monetary Authority

Paraguay Banco Central del Paraguay Instituto Nacional de Cooperativismo Ministerio de Industria y Comercio

Peru Department of Products and Services to National Institute for the Defense of Competition and Intellectual Property Protection (Indecopi)

Financial Ombudsman Service

Philippines Bangko Sentral ng Pilipinas Securities and Exchange Commission Philippine Deposit Insurance Corporation Insurance Commission

Republic of Armenia

Central Bank of Armenia

Russian Federation

Federal Service on Consumers' Rights Ministry of Finance of the Russian Federation Ministry for Economic Development of the Russian Federation

Federal Financial Markets Service

Senegal Direction de la Réglementation et de la supervision des systèmes financiers décentralisés (DRS-SFD)

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 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 Microfinance Departments of Ministers of Finances

Zambia Bank of Zambia Pensions and Insurance Authority Securities and Exchange Commission Competition and Consumer Protection Commission

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

CEMC WG survey: categories

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 – MARKET CONDUCT

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.

MANDATE – CONSUMER EMPOWERMENT

What are the main functions of the agencies?

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

PARTICIPATIVE APPROACH

Do advocacy groups have a formal role?

In designing and

implementing consumer empowerment policies and market

conduct regs

Financial education

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.

LANDSCAPE

The two main weaknesses and priorities over the next year

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).

Relevant legal provisions aremost often found in either general consumer protection legislation or in financial sector regulations.

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 – LEGAL BASIS

What legal documents govern market conduct regulation?

Market conduct provisions are diffused in multiple laws.

Most countries do not have specific legislation for financial consumer protection.

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 riskyb) it’s too new – there is no sectoral regulation

However, almost all areas are covered, so there are a number of members from whom lessons can potentially be learned.

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.

MARKET CONDUCT

Which areas are covered?

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?

In-site

Off-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.Is there a specific checklist or auditing

program that focuses on consumer protection issues?


Number of inspections conducted in one year


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)

Number of times this action of this type was taken in 2010

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 non-compliance.

Your answers seem to indicate that 55% of the countries have issued between 1 and 5 fines for market conduct compliance

Surprisingly high

And, is there a self-regulatory body (or bodies) that is responsible for enforcing of the standards?

Are there industry codes of conduct in your country which identify specific market conduct standards?

MARKET CONDUCT – SELF-REGULATION

Standards/codes of conduct

If so, has the regulator endorsed the code of conduct?

The majority of the countries have codes of conduct.

In those cases, the regulators has often endorsed the code, which is enforced by a third-party.

MARKET CONDUCT – SELF-REGULATION

Standards/codes of conduct

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?

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.

MARKET CONDUCT – PRICING, TRANSPARENCY & DISCLOSURE

Does your country have transparency & 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?

Does your country have transparency and disclosure regulations? 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


(Before Sale *)

MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – PAYMENT SERVICES


(Before Sale *)

MARKET CONDUCT – TRANSPARENCY & DISCLOSURE – E-MONEY


(Before Sale *)

MARKET CONDUCT – PRICING AND TERMS AND CONDITIONS OF COMPARABLE PRODUCTS/PROVIDERS

Is the information provided to consumers?

If yes, where?

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 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 customersIs 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.


What conducts and providers are regulated?

It seems that banks and NBFIs covered similarly

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 productProhibition of unfair, deceptive or aggressive practices

Suitability of products and services for the consumer

Prohibition on reckless lending


Is there any regulatory provision that mandates the provider:

To what providers does this apply?

To train staff on responsible sales practices

To supervise staff on responsible sales practices


The two main priorities for the next year

Suitability of products and services for the consumerObligation to verify repayment capacity of the consumer before selling a credit productObligation 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 AREASAbusive 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.


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?

For each of the help and redress mechanisms listed in the table below, indicate whether a solution is in place.


Complaint handling and redress mechanisms

What types of clients can file a complaint?



The decisions of the regulators and/or ombudsmen binding upon



CONSUMER EMPOWERMENT - DEBT COUNSELING

Is there any agency that offers debt counseling?

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.




Strategies, mandates, and tools for financial literacyIs 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?

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:


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?

What constraints and limitations keep your institution from promoting financial literacy, capability, and awareness?



Over the next year, what are the main priorities for your country in reference to financial consumers’ literacy, capability and awareness?



>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 IIG20 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?

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

Framework for Principles

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 – 1

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. Legal & regulatory framework

2. Oversight bodies3. Equitable & fair treatment4. Disclosure & transparency5. Education & awareness6. Responsible Business

Conduct7. Protection of consumer rights8. Protection of data & privacy9. Complaints handling10. 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

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

• Implications?

• Concerns?

• Suggestions?

Any other issues in this respect?

• ????

• ????

• ????

• ????

What

To

Do?

Session IIICEMC WG’s Governance

> Election of CEMC WG chairperson > Announcement of new chairperson

> Discussion and approval of CEMC WG seminal documents

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

Governance

Session IVCEMC WG’s sessions at

the 2011 AFI GPF

> Session on financial literacy> Session on transparency

FACILITATOR

> Ahmed Dermish, BFAPANELISTS

> 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

Thursday, 29 September, 17.00h – 18.30h

Financial literacy and financial inclusion

MODERATOR

> Shaun MundyPANELISTS

> 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

Friday, 30 September, 9.30h – 10.45h

Improved transparency standards for financial inclusion

Session VAgenda setting and operationalization

> Presentation of proposed log-frame> Creation of subgroups

Log-frame: templateIntervention

logicWhat should it show: It answers the question:

Impact/Goal

Change of state and improved situation

What is our vision of the future?

Outcomes

Situational or behavior change or improvement that is necessary to reach the impact

Where would we like to get to in the next 5 years?

Outputs

The tangible products, services, and results delivered which needs to be achieved to bring about the outcome

What are the main things that need to be delivered (in the next year) by the working group to achieve the vision?

ActivitiesTasks that have to be undertaken to deliver the desired outputs

What needs to be done to deliver each of these outputs?

Subgroups

5 subgroupsTransparenc

y and disclosure

Sales and marketing practices

Avenues for help and redress

Financial education

Harmonization of

guidelines

GuatemalaPeru xBCEAOChina

Uganda

TanzaniaPalestine xPhilippines

Liberia xRussia

Senegal

Pakistan xRDC

MexicoMalawiAngola

Armenia xThailandParaguayZambia

x = focal point

Session VISub-groups discussions

> Discussion of expected outcomes and outputs> Discussion of work plan

Session VIINext steps

> Finalization of log-frame> Finalization of work plan

> Agenda and logistic for the next meeting

CEMC WG’s log-frame

Goal Improved capacity of policymakers to design and implement effective policies to

protect and empower consumers

Outcome

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

Outputs

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

Activities

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

4 priority areas

MARKET CONDUCT Transparency and disclosure Sales and marketing practices

CONSUMER EMPOWERMENT Avenues for help and redress 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

Outputs 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

afi cemc wg - second meeting - presentation sdc

Economy & Finance