ConsumerEducationStrategy 2001 – 2004

“... developing a financiallyliterate community inAustralia, where consumerscan make informed decisionsabout financial products andservices and identify, andavoid, scams and swindlers”

October 2001

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Table of contents

SUMMARY 2

1 WHY A CONSUMER EDUCATION STRATEGY? 4

Our consumer protection powers 4

How we developed this strategy 4

2 OUR CONSUMER EDUCATION ROLE 5

Our role 5

Raising consumer awareness 5

Informing consumers 6

Coordinating consumer education 7

Improving financial literacy 7

Research 8

Referral to other organisations 8

Linking communication and education 9

What is outside our scope? 9

3 HOW DID WE SET OUR PRIORITIES? 10

Our priorities 10

Trends and current issues 10

Responses to our discussion paper 12

What we will focus on 13

4 MAIN ACTIVITIES AND DELIVERY MECHANISMS 15

Overview 15

Delivery mechanisms 16

New initiatives 21

Coordination and research 24

Feedback 25

5 APPENDICES 26

Commentators on our discussion papers 26

Format and distribution methods 27

Our primary objective in our consumereducation work is to develop a financiallyliterate community, where Australianconsumers can make informed decisionsabout financial products and services, andidentify and avoid scams and swindlers. To help us achieve this objective, we havedeveloped a consumer education strategyto guide our activities over the period 2001 – 2004.

As part of our strategy, we have set out:

• the scope of our consumer education role;

• the priority topic areas that our strategyshould focus on; and

• the delivery mechanisms we intend touse for our consumer educationinitiatives.

Our consumer education roleAs the primary consumer protectionregulator in the financial services sector, webelieve that our consumer education roleshould include the following mainelements:

• Making consumers aware of the need tobe informed, educated and active;

• Informing consumers about:– How they can look after their

money;

– Scams and swindles to avoid;

– Consumer rights and how toexercise them;

• Helping coordinate consumer educationacross different groups;

• Helping improve financial literacy;

• Undertaking or commissioning relevantresearch; and

• Providing referral information.

Our priority areasFinancial services is a very broad area, andit will not be possible for us, as a singleagency, to provide consumer education onevery possible topic of interest. We havetherefore identified a number of priorityareas and sub-issues around which weintend to focus our consumer educationwork for the next 3-4 years.

We have chosen these priority areas basedon the key trends and issues in thefinancial services sector, including factorssuch as the impact of our ageingpopulation, the importance and complexityof superannuation, recent privatisationsand demutualisations, and the differentneeds of disadvantaged consumers.

Our priority areas are:

1. Retirement planning and investing generally;

2. Superannuation;

3. E-commerce;

4. Insurance;

5. Dispute resolution;

6. Financial literacy and financialexclusion;

7. Consumer rights; and

8. Credit (once FSR legislationimplemented).

Main activities anddelivery mechanismsIn preparing and delivering consumereducation material, we need to understandthe characteristics and needs of therelevant target group(s) and to use the most appropriate mix of formats anddistribution mechanisms. A ‘one size fitsall’ approach will not usually be effective inconsumer education.

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Summary

We believe that the Internet will continueto be a very effective and efficient way ofdelivering consumer education to manygroups of consumers. We will thereforecontinue to promote and improve Fido, our consumer website, as our primaryvehicle for telling consumers aboutfinancial products and services, scams,safety checks, current issues, and other matters.

However, although Internet use is growing,not everyone has easy access to theInternet, and others still prefer to get their information from other sources. We will therefore continue to use a range of delivery mechanisms for our consumereducation initiatives. These are likely toinclude:

• A media advertising campaign;

• ‘Consumer tips’ columns or sections inprint and radio media;

• Fact sheets, in English and also incommunity languages;

• Consumer alerts;

• Liaison with, and providing informationfor, community intermediaries;

• Providing content for existingcommunity and government courses; and

• Consumer brochures and otherpublications.

These mechanisms will be additional to ourtraditional mechanisms such as InvestorForums and Infoline.

We will develop initiatives using thesedelivery mechanisms to provide consumereducation on the priority areas discussedabove. Some of the initiatives that we havealready planned include:

• Plain language summary of the Electronic Funds Transfer (EFT) Code;

• Insurance education for indigenouscommunities;

• A campaign for people from non-English speaking backgrounds abouttheir right to complain and theavailability of alternative disputeresolution (ADR) services;

• Working with others to deliversuperannuation education; and

• Publications for school leavers.

What will our educationstrategy achieve?As our education strategy is implemented,we expect that we will see more consumers:

• Actively seeking financial information;

• Seeking information about financialproducts and services and aboutconsumer rights from ASIC;

• Making good decisions about financialissues; and

• Knowing about the availability ofindependent dispute resolution schemesin financial services.

We also expect to see a decreasing numberof consumers:

• Getting caught by scams; and

• With low levels of financial literacy.

Finally, through the implementation of oureducation strategy, we hope to increase theeffectiveness of, and coordination ofcommunity and business consumereducation in the financial services sector.

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Our consumer protection powersOne of ASIC’s aims is ‘to promote theconfident and informed participation ofinvestors and consumers in the financialsystem’. In July 1998, our powers increasedas we took on consumer protectionresponsibilities for deposit taking, generaland life insurance, superannuation,retirement savings accounts, securities andfutures contracts. Followingcommencement of the Financial ServicesReform legislation in March 2002 we will also have consumer protectionresponsibility for credit products andservices and foreign exchange services.

Given the recent expansion in ourconsumer role, we took the opportunity tore-visit our consumer education role and todevelop a comprehensive consumereducation strategy that covers all of ourareas of responsibility.

We see consumer education as a useful toolto promote consumer confidence and tohelp consumers:

• choose suitable products and services;

• identify scams and traps; and

• understand their options and takeappropriate steps where problems do arise.

Consumer education can also complementour enforcement, compliance, andsupervisory work, and increase theeffectiveness of outcomes in these areas.

How we developed this strategyTo help us develop this strategy, we:

• released Educating financial servicesconsumers: Discussion paper for publiccomment in July 2000 (for those whoprovided comments on the discussionpaper, see page 26.);

• focused our Annual Stakeholder Forumin 2000 around the theme of consumereducation; and

• held informal discussions withinterested stakeholders on our consumereducation plans.

We developed this Consumer EducationStrategy using feedback from the above.

Like other organisations, our resources arelimited, so we cannot cover the wholeterritory of consumer education infinancial services. However, we believe thatour strategy is ambitious but achievable,and that it will be the best use of theresources we have available for consumereducation.

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1 Why a consumer education strategy?

Our role We see our consumer education role as:

• raising consumer awareness that theyneed to get informed, educated, andactive about financial products andservices, the sources of relevantinformation, and ASIC’s role;

• informing consumers about:– how they can look after their

money, including information abouttypes of financial products, servicesand technologies

– scams and swindlers to avoid

– consumer rights and how to exercisethem eg how to complain;

• helping coordinate the consumereducation activities of industry,consumer groups and other governmentagencies, including developing andpromoting good consumer educationpractices;

• encouraging and taking part in activitiesto improve financial literacy;

• informing consumers aboutorganisations that provide moretargeted and comprehensive education; and

• undertaking or commissioning research.

We do not think it is appropriate, ornecessary, for us to be involved indelivering the type of investor educationcourses that are readily available in themarketplace. However, we do have a role inproviding direct consumer / investoreducation and information that is noteasily accessible or not already provided bythe market.

We also educate industry and industrymembers, through our Policy Statementsand ‘ASIC Speaks’ seminars, on complianceissues. We plan to develop an industryguide to the consumer protectionprovisions of the ASIC Act. Thiscompliance education benefits consumerstoo. However, our compliance educationrole is separate to our consumer educationrole, and is not the focus of this paper.

Raising consumerawarenessA significant barrier to providing consumereducation about financial services is thatmany consumers ‘don’t know what theydon’t know’. These consumers are unlikelyto search for consumer information, andmay make expensive mistakes, or be thesubject of frauds or scams.

As one submission noted:

“In terms of the learning process, mostof the targets for education are theunconsciously unskilled. ASIC activitiesshould focus on moving this group tothe consciously unskilled to enable theeducation process to make them moreskilled.” (our emphasis)

As a regulator with a national focus and abroad mandate, ASIC is well placed to takesteps to increase consumer awareness.

Increasing awareness of the need foreducation/information is, however, not arole solely for ASIC. There may becircumstances where coordinated initiativesare needed – for example, onsuperannuation.

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Our consumer education role 2

Informing consumersHow to look after your moneyAs an independent regulator, ASIC’seducation initiatives are not generally seenby consumers as being biased towardsparticular products and/or particularsuppliers. In contrast, initiatives fromsuppliers of financial products and servicesmay suffer from consumer perceptions thatthe material is not independent and/or isprimarily designed to achieve marketingobjectives.

In addition, we see that consumers areseeking independent information tocomplement the general and product-specific information that is provided byfinancial services organisations.

We play an important role in providinginformation about:

• the different types or classes of productsand services available – both basic andcomplex;

• how to use financial services andproducts, including how to compareservices and products, and how to judgequality;

• common terminology;

• how to match needs and desiredachievements with investment andother options;

• how to avoid cheats and incompetent advisers;

• how to avoid making expensivemistakes; and

• what to do if something goes wrong.

We aim to provide this education andinformation where it is most needed and ina form which will be most useful.

In order to reach as wide an audience aspossible, much of this information will betargeted to the general public. However,there will often be circumstances where itis appropriate to provide more targetedinformation. For example, some groups ofconsumers may have different needs, orsuffer from particular disadvantages,compared to others.

Scams and swindlers to avoidWe are well placed to provide informationon scams and current issues. Ourenforcement experience means that we canidentify and describe scams with credibility.We also have regular contact withgovernment authorities in other countries,and thus are likely to find out aboutoverseas scams that might be targetingAustralian consumers.

We have a long history of providingconsumer warnings about scams andcurrent problems. Our consumer alerts,Gull awards, Fido content, and Fido Newsare all designed to help consumers identifyand avoid scams.

We also provide a number of search toolsthat consumers can use to reduce the riskof falling victim to a scam. Promoting‘safety checks’ that consumers can makebefore investing money is an importantand continuing focus of our consumereducation work.

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Your rights and how to exercise themWe are responsible for enforcing consumerprotection laws in the financial servicessector and are also involved in various self-regulatory initiatives – including codes anddispute resolution schemes. We are wellplaced to provide information andeducation on consumer rights and how toexercise them.

Consumers may not want detailedinformation on every law or otherinstrument that can assist them in theirdealings with financial institutions.However, it is important for consumers toknow their basic rights, and the avenues(eg dispute resolution schemes) they canuse to help resolve complaints anddisputes.

Consumers also need to develop theconfidence to pursue their rights. Knowingwhere to look for information on relevantlegislation, codes and dispute resolutionschemes can assist development of thisconfidence.

Coordinating consumer education There is a need for better coordination ofeducation initiatives on financial services.Improved coordination should reduce therisks of gaps or duplications in theprovision of education, and also facilitatelearning about the factors that lead tosuccessful initiatives. For example,discussions between educators could helpto further define good practices and keycriteria for effective consumer education.

We are well placed to facilitate coordination of consumer educationinitiatives in the financial services sector.However, we would not seek to direct orcontrol the initiatives proposed orimplemented by other organisations. Nor would we want to add another layeronto existing forums and relationships.Instead, we see our role as about facilitating communication between thoseinvolved in providing consumer educationin this sector.

Improving financial literacyImproving financial literacy in Australiawill help consumers participate in thefinancial system in an informed way.However, this is also a huge and ongoingtask, and one that is the responsibility of anumber of different government agenciesand other organisations. We have a keeninterest in this area, and therefore want towork with other agencies or organisations(eg departments of education, industrymembers and associations, employerassociations, unions, etc) to develop andimplement appropriate initiatives designedto measure and improve financial literacy.

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ResearchWe are not a primary research agency onconsumer education. However, appropriateresearch projects can inform our educationwork and increase its effectiveness.

Our Consumer Advisory Panel (CAP) hasalready commissioned a number of researchprojects relevant to consumer education(Stocktake on Consumer Education inFinancial Services, Consumer EducationLiterature Survey and Review). We also havethe capacity to undertake or commissionrelevant research outside the CAP process.

Referral to otherorganisationsWe do not generally have the resources orthe expertise to provide detailed educationinitiatives (eg adult education courses oninvestment), or more personalisedinitiatives. However, there are manyorganisations that do provide suchinitiatives and we may be able to play auseful role in providing information toconsumers about these organisations. Weanticipate that many consumers will startwith us to meet their basic needs, and wemay therefore be in a good position toprovide timely information about theofferings of other organisations.

We will liaise closely with otherorganisations to ensure that any referralinformation that we provide is appropriate,taking into account resource and otherconstraints.

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Linking communicationand education There is a link between many of ourgeneral communication/promotionactivities (for example, our media releasesand consumer website), and our educationinitiatives. It will therefore not always beeasy or productive to clearly label anyparticular initiative as a communicationactivity or an education activity. However,both our communication and oureducation initiatives will be designed toultimately contribute to increasedconsumer understanding and knowledge offinancial services issues, thus meeting ourconsumer education goals.

What is outside our scope?In addition to defining what falls withinour education role, we have also set out theareas that are outside our scope.

In general, we consider it important thatfor us to focus on initiatives that can reachlarge numbers of consumers. We havetaken note of the fact that manysubmissions argued strongly that face toface or more personal education is likely tobe one of the most effective forms ofeducation. This is consistent with surveysand research, both here and in otherjurisdictions.

Our Investor Forums and community talkswill continue to be our main tool forproviding face-to-face education. These willcontinue to be held in both regional areasand capital cities, and we will promotethem widely. We will also continue toprovide our Infoline service, which givesconsumers and investors ‘voice-to-voice’access to us and the information that wecan provide.

However, we do not have the resources toprovide detailed face-to-face education toconsumers, through classes or educationcourses, on a consistent or regular basis.And there are other organisations –including community and consumerorganisations – that are more suited toproviding such education. Indeed, formany such organisations, it is a key facet oftheir day-to-day activities.

We do recognise that many communityand consumer organisations operate onsmall and stretched budgets. We willtherefore look at ways in which ASIC cansupport, financially or otherwise, educationinitiatives of other organisations providingface-to-face education, including forexample, by developing resources that they can use.

In addition, we do not consider that itwould be appropriate for us to beginoffering courses on investing or otherfinancial issues to consumers. There arealready many specialised educationproviders in the private and communitysectors, and numerous adult educationcourses available on financial servicesissues.

Finally, providing personalised financial advice is clearly outside the scope of our role.

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Our prioritiesOur priorities for our consumer educationwork are:

1. Retirement planning and investinggenerally;

2. Superannuation;

3. E-commerce;

4. Insurance;

5. Dispute resolution;

6. Financial literacy and financialexclusion;

7. Consumer rights; and

8. Credit.

We set these priorities by consideringtrends and key issues in financial servicesand the feedback we received from ourDiscussion Paper: Educating FinancialServices Consumers.

Trends and current issuesThe following factors were considered insetting our priority areas.

Our ageing populationThe fact that the Australian population isageing is likely to reduce the ability ofgovernments to provide governmentpensions and other financial support tothose who have retired from work. In turn,this will increase the need for consumersacross the social spectrum to provide forthemselves in retirement.

The importance and complexityof superannuation A survey that we conducted in 1999showed that many consumers did notunderstand the annual statements fromtheir superannuation fund, or did notknow how much money they had in thefund. Any expansion of the choice of fundswould further increase the need forconsumer education in this area.

Privatisations anddemutualisations Privatisations and demutualisations haveled to increasing levels of participation inshare ownership by ordinary consumers.This has come at a time when financialmarkets have generally been going throughan extended boom period, thus perhapsleading to inaccurate perceptions of therisks involved in investing in the stockmarket.

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How did we set our priorities?3

The needs of disadvantaged consumers Although many consumers find it difficultto make informed choices about financialservices, some groups of consumers sufferparticular difficulties or disadvantages intheir dealings with financial servicesbusinesses and/or have differentexperiences compared to the generalpopulation.

The Financial Services Reform legislationThese changes will lead to improvementsin consumer protection, however, to gainthe most from the changes, consumers willneed to be able to understand and use thevarious disclosure documents and otherinformation they will receive.

Our complaints and enforcementworkFor example, our experiences wherevulnerable groups in the community havebeen subject to systemic mis-selling orfraud. The consequences of such practicescan be financially devastating to consumerson low incomes, or who have marginalinvolvement with financial services, eventhough the amounts involved may berelatively small.

Our compliance and surveillance workFor example, our campaign on disabilityinsurance showed that many agents are notable to clearly explain important aspects ofthese policies.

Gaps and overlaps in consumer educationThese were identified in the Stocktake ofConsumer Education in Financial Services(described in our Discussion Paper).

Material in community languagesAs explained in the Stocktake referred toabove, there is a lack of consumereducation material provided in communitylanguages or targeted to communities fromnon-English speaking backgrounds. Thismay place these consumers at adisadvantage compared to otherconsumers.

Results from our Consumer IssuesSurvey in 1999Our Consumer Issues survey found that themain consumer issues for ASIC were superchoice and consumer empowerment; directequities; banking (disclosure of fees,banking at the fringe); financial advicefrom sources that are not trulyindependent; e-commerce; direct selling ofinsurance and banking products; insurance(especially regarding exclusions andunderinsurance); alternative disputeresolution schemes; and real estateinvestments.

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Responses to ourdiscussion paperWe have also taken into account thecomments received in response to theDiscussion Paper. Most submissionssupported the priority areas and proposedrole outlined in the Discussion Paper,however, some noted that it would bedifficult for one agency to cover such abroad range of topics.

Many submissions also provided additionalsuggestions for our consumer educationrole. For example, they suggested that weneeded:

• more direct references to the needs oflow income, vulnerable consumers. The disproportionate needs of theseconsumers should be made a key focusof the action plan;

• initiatives to develop dedicated ways forASIC to communicate with communityand consumer representatives (for example, regular meetings, phonehook-ups, and/or meetings withregional offices);

• a continuing education program thataddresses consumer concerns – forexample, where to obtain financialadvice, investment risks involved, needto take an active role in investmentdecisions, etc.;

• less focus on insurance and banking issues, which are already well known; and

• a focus on areas of importance to abroad range of consumers – investmentbasics, banking products,superannuation, savings, scams, redress,and retirement planning.

In terms of actual initiatives suggested inthe Discussion Paper, the following werestrongly supported by submissions:

• Scams education;

• Investment guidance – generaleducation material on investment issuesand options;

• Banking guidance – to help consumersidentify key features of products andkey questions to ask when choosingproducts;

• Education about new technologies infinancial services;

• Community intermediaries – trainingand/or providing resources;

• Print media coverage – includingincorporating relevant issues in‘women’s’ magazines, lifestylemagazines, general entertainmentmagazines;

• Broadcast media coverage of financialservices issues and stories;

• Reference sheets/guides on consumercodes and ADR schemes;

• Incorporating material into seminarsand publications by Centrelink’sFinancial Information Service;

• Education material on mortgagebrokers; and

• Young consumers and World ConsumerRights Day.

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What we will focus onOur priorities for consumer education wereset out at the beginning of this Section.While the detail of how we will approacheach of these 8 subject areas is still beingdeveloped, some of the issues we will focuson are set out below. They incorporatemany of the initiatives suggested in ourDiscussion Paper, Educating FinancialServices Consumers and in the responses tothat paper. The list is not intended to beexhaustive and those issues listed aresubject to a mid strategy review and a need to retain sufficient flexibility to beresponsive to emerging issues. Some of theprojects listed here are discussed in greaterdetail in Section 4 of the strategy.

Retirement planning andinvesting generallyFor many people, when they retire is thefirst time in their life that they will have asignificant sum to invest. If consumersdon’t have basic skills and knowledge toassist them with investment decisions,particularly where large sums are involved,things can and do go wrong. Theconsequences can be devastating. Ourexperience over the last decade has taught usthat the focus of our consumer educationin this area should be on such issues as:

• How to get good financial advice. This may include considerationsrelating to how to choose an adviserand how to understand theremuneration of advisers.

• How to identify and avoid scams.

• Information about solicitors’ mortgage schemes.

• What to do with lump sum payouts (eg from redundancy, superannuation,inheritance, divorce etc).

• Using the new disclosure documentsintroduced by the FSR legislation.

SuperannuationBecause of the importance of superannuationto the financial well being of consumers intheir retirement, superannuation will be aparticularly strong focus of our educationstrategy. To maximise our effectiveness inthis area, especially in terms of the timelydistribution of material, we will be looking topartner with other organisations for some ofour superannuation education initiatives.The types of superannuation issues we arelikely to focus upon include:

• What to look for when choosing orchanging a superannuation fund –including how to use the new disclosuredocuments introduced by the FSRlegislation and understanding the feesassociated with superannuation andtheir impact.

• How to read, understand and use asuperannuation statement.

• Information and warnings aboutaccessing superannuation beforeretirement.

E-commerceE-commerce developments in the financialservices sector have the potential toprovide consumers with huge advantagesin terms of convenience and savings. For consumers to access these advantages,however, they need to have confidence inthe systems. This means understandingany risks and how to minimise them andunderstanding their rights. This is an areawhere we will need to remain extremelyflexible so that we have the capacity torespond to new developments. At thistime, however, issues that we are planningeducational activities in relation to include:

• consumers’ rights under the EFT code;

• using and cancelling direct debitauthorities; and

• account aggregators – what theconsumer risks are, how to reduce themand how to make an informed choice.

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InsuranceWe see certain perennial problems in theinsurance area. These include such issuesas consumers not adequatelyunderstanding what is and isn’t covered bya policy or their duty of disclosure as wellas problems associated with the missellingof certain types of policies. Oureducational work in the insurance field willfocus upon such issues.

Financial LiteracyCreating a financially literate community isa long term agenda item which won’t becompleted during the life of this strategy.That said, we see this as an essential goal ofour consumer education work. In additionto the more general education projectsdiscussed here, financial literacy projectswe will be focussing upon over the nextfew years include:

• participating in research to measurefinancial literacy;

• stage one of our schools project whichis designed to understand whatfinancial literacy education is currentlyincluded in curricula and, if necessary,the processes for influencing curriculadevelopment; and

• demystifying terminology in thefinancial services.

Consumer rightsRights are significantly weakened ifconsumers are unaware of the rights thatthey possess and how to exercise them. Wewill have a continual focus on educatingconsumers about their rights, includinghow to complain when things go wrongand where to complain to.

CreditThe new financial services reformlegislation will result in credit beingcovered by the ASIC Act. To highlight ournew credit role we will undertake a numberof credit related education initiativesincluding in relation to:

• mortgage / finance brokers;

• margin lending; and

• debtor harassment.

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Overview Our education strategy has 3 parts – (i)preferred delivery mechanisms, (ii) specificnew initiatives we intend to implement,and (iii) research and coordinationinitiatives.

We have spent some time developing ourviews on the delivery mechanisms that weintend to use. We expect to use a variety ofdelivery mechanisms for each priority issuewe have identified, and we will choose themost suitable mechanism(s) for each topicas we develop our plans further.Consultations with the relevant targetgroups and other information we receiveon effective delivery mechanisms1 will helpus to finalise particular initiatives.

Some initiatives in our strategy will requirea relatively short time to develop andimplement. Others will requiresubstantially longer time frames fordevelopment and implementation, andsome of these may involve a number ofseparate stages. In addition, we expect thatwe will develop and implement someinitiatives in partnership with otherorganisations.

Our strategy is ambitious. However, webelieve that, subject to resource constraints,we will be able to achieve the bulk of theinitiatives described in this paper, as well asthose to be developed, over the next 3 to 4years. We prefer to set an ambitiousprogram so that our priorities are clearlyestablished. However, we will also need tobuild some flexibility into our planning inorder to respond to new issues or projectsthat become more relevant or topical. Wedo not expect to undertake all of theinitiatives simultaneously.

In addition to those initiatives we conductourselves, we will also take upopportunities to provide input into theconsumer education initiatives of otherorganizations including relevant industryand government education projects.

We will continue to consult with relevantorganisations as we develop and implementparticular initiatives. In particular, we arecommitted to ensuring that we provideappropriate opportunities for consumer andcommunity organisations to have inputinto the implementation of our strategyand the development of particularinitiatives. We will liaise with consumerand community organisations about themost effective ways to facilitate theirinvolvement.

When undertaking each education projectwe will devote time to planning, includingidentifying our target audience andappropriate delivery strategy. We will useour best endeavours to ensure that anymaterials we prepare are accurate and aredesigned to be easily understood by theirintended audience as well as relevant to theneeds of that audience. Where we partnerwith other organizations in an initiative wewill take steps to ensure that theindependence of our advice is notcompromised. Finally, subject to resources,we will seek to evaluate and test theeffectiveness of at least our bigger projectsand will invite feedback on how we havegone from interested parties.

1 For example, we have commissioned the University of Technology, Sydney to conduct a literature search and review ofconsumer education research. This review will distil experiences about effective consumer education methods.

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Main activities and delivery mechanisms 4

Delivery mechanismsOur approachWe will seek to understand thecharacteristics and needs of the targetgroup and use a mix of formats anddistribution mechanisms to ensureeducation activities are effective.

Fido, our consumer website, will continueto be our primary vehicle for tellingconsumers about financial products andservices, scams, safety checks, currentissues, and other matters. We will continueto promote and improve Fido.

Where appropriate, Fido material will alsobe suitable for printing and distributionthrough other means. We also intend thatFido content be suitable for recycling orrepackaging in education activitiesinvolving different delivery channels.

However, although use is growing, there aresome consumers who rarely use theInternet. For example, consumers who areolder, in rural and remote areas, on lowincomes, or from non-English speakingbackgrounds are reported to have relativelylow levels of use of the Internet.2

To meet the needs of these consumers, wewill continue to produce and developrelevant written material (eg brochures orfact sheets), but will carefully consider themost effective ways to distribute theinformation.

We will also consider providinginformation in community languages. For example, we’ve suggested a campaignon the right to complain, targeted atcommunities from non-English speakingbackgrounds, and for multi-lingual fact sheets.

We will also work with the media andcommunity intermediaries to ensure thatour messages and education initiativesreach our target audiences.

We identify four types of deliverymechanisms:

• internet;

• media;

• external liaison; and

• publications,

and explain below how we will use them.

Internet

Fido, ASIC’s consumer website

Fido (Financial Information DeliveredOnline) is ASIC’s consumer website(www.fido.asic.gov.au). Fido was launchedin March 2000 and already has around40,000 hits each month.

A large number of consumers have accessto, and regularly use, the Internet, whetherat home, at work, at Internet cafes, and/orat community facilities such as librariesand community centres. Young people, inparticular, are familiar with the Internet,and are much more likely to use it thanolder Australians.3 (The ‘Young Investor’section of Fido is one of the most visitedsections, offering us a wonderfulopportunity to educate people at a youngage about investing and superannuationand their rights and responsibilities asconsumers of financial products andservices.) The Internet is an easy, relativelycheap, and efficient means of deliveringinformation and searching our databases.

The Internet is also an efficient way ofdistributing information to community andconsumer workers – who then pass it on totheir stakeholders. They can do this in twoways: by handing out paper copies of ASIC

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2,3 See for example, Australian Bureau of Statistics, Use of the Internet by Householders, Australia, Catalogue No 8147.0,November 1999 and 2000.

website material to people who do nothave Internet access and by putting linksfrom their website to Fido. ASIC Infolinestaff also encourage callers who haveInternet access to visit Fido.

Other websites, including financialinstitutions, regional sites, superannuationfunds, news sites, professionalorganisations and at least one Australianembassy overseas, have links to Fido fortheir visitors.

As explained above, we therefore intend touse Fido as our primary vehicle fordelivering information on financialproducts and services, scams, safety checks,current issues, and other matters. We arecontinuing to improve Fido and offer newfeatures. We will also ensure that, whereappropriate, the material that is availableon Fido is also suitable for printing anddelivery through other means.

In terms of content, we are focusing onimproving existing and expanding contenton the priority areas listed in Section Three.

We will also examine ways of increasingthe profile of Fido and directing traffic tothe site.

Fido News, a monthly e-bulletin

Fido News was launched in March 2001.FIDO News:

• warns consumers about recent scams;

• tells consumers when we’ve issuedconsumer alerts; and

• provides the latest tips and informationabout investing in shares and managedinvestments, insurance,superannuation, and depositing money.

Fido News is a handy service for peoplewho don’t visit Fido regularly.

While subscriptions are still at relativelylow levels (compared to the number ofvisitors to the website), they are increasingrapidly. We will continue to develop andimprove Fido News and promote itsavailability. We will also directly contactrelevant journalists to alert them to thisnew service.

Media

Advertising campaign based on “The Fido Files” or similar

Our experience suggests that consumers areinterested in “real life” stories, rather thanhypothetical or theoretical discussions. Thisis why initiatives like the Gull Awards arepopular.4 Through hearing about theexperiences of others, consumers can gainan understanding of typical problem areas.This in turn may lead to an awareness ofpotential traps and the importance ofobtaining more information in thefinancial services sector.

We intend to explore the feasibility of anadvertising campaign that could be basedaround a series of 4 – 10 different stories ofreal life scams – the “Fido Files". Thecampaign would include tips to avoid theparticular scams referred to, and woulddirect consumers to Fido and Infoline formore information.

The campaign would be supported byproviding additional information torelevant media outlets, includingnewspapers, lifestyle and general interestmagazines, money commentators, andothers.

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4 The Gull Awards section of Fido is a collection of true stories about outrageous financial scams. We encourage people toalert us to Gulls, and we award a $50 prize to people who nominate the best Gulls. Gull stories receive good newspaperand radio coverage, and serve to remind consumers about scams and how to avoid them. The Gull awards also encouragecommunity participation in our work.

One possibility is to develop a campaignbased around advertising on publictransport – for example, by placingadvertising panels in buses aroundAustralia. This may be an effective way tocapture the attention of consumers who arenot necessarily looking for informationabout financial services at the time, butmight remember the Fido name for futurereference. The relative merits of this formof advertising over other options will,however, be assessed before we commit toany form of advertising.

‘Consumer tips’ columns

Consumers nowadays get much of theirinformation from the print, radio andbroadcast media. These sources areparticularly important for attracting theattention of consumers who might notnormally seek out specific information onfinancial services, but may be in theprocess of making or reviewing a financialdecision.

We will therefore develop a proposal for aconsumer tips and/or consumer advicecolumn in relevant, high-circulationpublications, including those with differentreadership profiles. We will also explore thepossibilities of providing relevant materialfor television and radio programs.

In addition, we will continue to developappropriate relations with the media toensure that financial services issues areincluded in the most widely accessed media– including newspapers, current affairs andlifestyle programs, popular magazines andregional publications.

Consumer Alerts

We regularly release ‘Consumer Alerts’which warn consumers about topicalproblem areas and/or educate them aboutcommonly misunderstood areas/issues inthe financial sector. We aim to releaseapproximately 4-6 consumer alerts eachyear, although this may vary depending onthe issues that are current.

Consumer alerts are issued via mediarelease, and are available through Fido.

External liaison

Community intermediaries

There are many community intermediariesthat might provide the first point of call forconsumers with a concern in relation tofinancial services. These intermediaries maynot necessarily be consumer advocates orpeople who are familiar with consumerprotection issues. Instead, they might bemigrant resource workers, communitycentre staff, workplace or unionrepresentatives, or information and referralworkers in general community centres.

Submissions to the Discussion Paper andour own research suggest that some groupsin the community prefer to seekinformation on financial services issuesthrough personal contact. It is thereforeimportant that such communityintermediaries know at least the sources ofinformation or referral for queries anddisputes about financial services.

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We will consult with relevant consumerand community groups to identify theneeds and priorities for these workers, andto identify the most effective way ofproviding information and assistance thatwill enable them to assist, educate, andadvocate for, their constituents. This mightbe through:

• conducting seminars / training sessionswith community workers – explainingconsumer issues and rights in financialservices;

• developing a kit on financial servicesissues for community workers; and/or

• including information about financialservices issues in existing communityworker resources.

The fact sheets that we intend to developmay also be relevant to this project.

Infoline

Infoline is our principal call centre forinformation, regulatory and enforcementactivities. It performs a vital role as a firstpoint of contact for consumers, andcomplements our electronic delivery ofinformation through Fido.

Infoline staff distribute publications,provide general advice, and refer callerswith more detailed queries to appropriatesources, both within and outside ASIC.

Providing content for existingcommunity and government courses

There are a range of courses already run inthe community that might usefully includefinancial services information, and thusimprove financial literacy in adults. Oftenthese courses are targeted towardsconsumers who might have particulardisadvantages when dealing with financialservices issues or who might have lowlevels of financial literacy.

We intend to liaise with relevantorganisations to assess the possibilities forincorporating financial services educationinto the existing courses in the community.Where we identify appropriateopportunities, we will work with theorganisations concerned to incorporaterelevant education and information onfinancial services issues and skills, and toprovide appropriate resources and support.

The types of courses where financialservices information might be usefullyincluded could be:

• courses on English as a Second Language;

• living and parenting skills;

• job preparation (eg run by Centrelink,youth centres);

• migrant resource centre programs;

• senior citizens programs; and

• workplace programs (eg run by unions).

Investor forums and presentations to community groups

Investor forums are an effective way toprovide face-to-face education andinformation to large groups of consumers.Our forums are well attended, and providea good starting point for consumerswanting to learn more about financialissues and how to protect themselves fromscams and frauds.

We will continue to organise InvestorForums in both regional areas and capitalcities, and will use the forums to promotethe availability of information throughFido and other sources.

Our Regional Commissioners and otherstaff also regularly give presentations tocommunity groups. Again, these are animportant part of our consumer educationwork, and we will continue to respond torequests for such presentations as resourcespermit.

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Publications

Fact sheets

Comments from community groups andothers suggest that fact sheets on relevanttopics can be a useful way to promote andsupport education initiatives. Fact sheetsthat are short and punchy can be madeavailable on the Internet for viewing orprinting by consumers, intermediaries,teachers, and others. They can be used:

• by individual consumers, to help themwith their decision making;

• by caseworkers and communityadvisers, to provide to clients toreinforce the information provided;

• by community educators, to incorporateinto relevant education sessions;

• by teachers, to support classroomactivities; and

• by ASIC staff, to support Investorforums and talks to community groups.

Stand-alone fact sheets can, if clearlywritten, be suitable for translation intoother languages in appropriatecircumstances.

Fact sheets also lend themselves to easilybeing targeted to specific consumer groups.

In the UK, the Financial Services Authority(FSA) has released a series of guides todifferent products and issues (eg the FSAguide to making a complaint, the FSA guideto financial advice). According to the FSA,these publications have been well received.

We propose to issue a series of simple, one-page fact sheets on relevant topics forconsumers. The fact sheets will have apractical theme, and will focus on issuessuch as: how to compare products orproviders; knowing what questions to askand what to do with the answers; how tocomplain, etc. We hope that this practicalapproach will make the fact sheets relevant

to the time when consumers are makingdecisions, thus increasing the likelihoodthat the information will be absorbed.

We will work with community groups andothers to ensure that the topics covered bythe fact sheets are appropriate and todevelop suitable distribution opportunities.We will also consult on the need to providerelevant fact sheets in other languages (seebelow).

Developing fact sheets will be an ongoingproject. We will aim to develop 4 factsheets each year for the next 3 years.

Multi-lingual library of fact sheets

In addition to developing fact sheets inEnglish, we intend, over time, to develop aresource library of fact sheets in relevantcommunity languages. Again, we will workwith relevant community organisations tochoose appropriate topics and to ensurethat translations are appropriate and topicsare not duplicating existing work. (Thetopics may not necessarily be the same asthose used for the fact sheets in English.)

We plan to develop at least one fact sheetin community languages each year, butmay develop more depending on budgetaryconsiderations. However, there is likely tobe a tension between the number of factsheets that we can produce, and thenumber of languages each fact sheet can betranslated into. For the 2001-2002 financialyear, we propose, subject to consultation,developing a fact sheet on how tocomplain about financial products and services.

We may be able to link this work with aproject to provide fact sheets on credit anddebt issues in community languages. TheConsumer Credit Legal Centre (NSW) andthe Macarthur Legal Centre are currentlyimplementing this project.

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Distribution of consumer publications

Our two main consumer publications are‘Don’t Kiss Your Money Goodbye’ and‘Super Decisions’. These publications aredistributed through relevant industryassociations and their members, and arealso available on Fido in ‘soft copy’.

We will continue to promote thesepublications (and any new ones) and tolook at developing even more effectivemeans of distribution, so that they areprovided to consumers at the time theyneed the information.

As discussed later in this paper, plannednew publications include a plain languageguide to the EFT Code, and a short guideon ‘How ASIC can help you’.

New initiativesDuring the life of our consumer educationstrategy, we intend to implement a range ofinitiatives to cover the priority areaspreviously mentioned. We have not yetidentified or planned all of these initiatives,however, we have identified someinitiatives, and some of these are describedbelow.

Plain language summary of EFT CodeTo support the revised EFT Code (whichcommences in April 2002), we will developa plain language summary of the Code forconsumers, advisers, and others.

This will be available through our Internetsite and through Infoline. We will providecopies of the brochure to ADR schemes todistribute to complainants. We also intendto work with financial institutions andtheir associations to explore other ways ofdistributing the information (for example,by co-branding the document, and havingit available in branches and call-centres).

Insurance education forIndigenous communitiesAs a result of an enforceable undertakinggiven by an insurance company in 2000,some funds have been provided to prepare,produce, and distribute educative materialsin insurance targeted to indigenousconsumers.

We have already begun talking withrelevant experts about the most effectiveway to use these education funds.

Glossary of terms and types offinancial productsFido currently includes links to plainlanguage definitions to a number of theterms used on the site. However, we intendto expand this service and develop a stand-alone glossary of common terms infinancial products and services, with plainlanguage definitions and examples. Wherepossible, we will continue to provide a linkto the relevant part of the glossary wherethe relevant term is found in Fido text. Wemay also look at whether pop up boxescould be used to explain relevant termswhilst the consumer is viewing othersections of Fido.

We will also explore ways to target thisinformation to consumers who do not haveaccess to, or regularly use, the Internet.

“How ASIC can help you” –general publicationWe intend to develop a short brochureexplaining our role, and the services andinformation that we can provide to bothconsumers and the businesses that weregulate.

The brochure would also provideinformation on where to go for moreinformation.

We understand that developing a brochurealone is insufficient to draw it to theattention of consumers, and we will ensurethat it is distributed in a way that supports

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our other education initiatives. Forexample, we will look at distribution:

• by ASIC staff at Investor Forums andcommunity meetings;

• by ASIC staff at stalls at public shows etc;

• to community intermediaries – inconjunction with an ASIC presentationor other personalised contact;

• to libraries and other public /community venues – in conjunctionwith an ASIC presentation or otherpersonalised contact;

• by Infoline staff in appropriatecircumstances;

• to electorate offices for distribution toconstituents in relevant circumstances.

Working with others to deliver superannuationeducationEducation about superannuation issues is a priority area for us, and it is also likelyto be a priority area for the AustralianTaxation Office and other organisations. It will be important that there is acoordinated response to these issues, andwe therefore want to work with othersto ensure that appropriate educationinitiatives are developed.

Financial literacy in schoolsproject, Stage 1: Survey ofexisting financial servicesconsumer educationA key priority for our work on improvingfinancial literacy will be to encourage theprovision of financial services education tochildren and teenagers through schooleducation. Targeting initiatives towardschildren in schools can often also have awider impact – for example, children maydiscuss homework or projects with othermembers of their family.

We hope to develop a long-term project, inconjunction with other organisations andagencies, which will ensure that childrenhave a reasonable level of financial literacyby the time they start having to make theirown financial decisions.

The first stage of this project will be to gainan understanding of the extent to whichpersonal finance education is alreadyprovided in schools in Australia, and of thedifferences between jurisdictions. Weintend to work with relevant agencies toreview curricula and other material toassess the current provision of personalfinance education in schools, as well as toidentify the processes or procedures forpromoting change (if needed). During thisfirst stage we will also examine the extentto which financial literacy information isincorporated in curricula overseas and,where it is, how this is done.

Once this survey is complete, we will be ina better position to assess what change, ifany, is needed, and the role that ASICshould play in facilitating change.

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“Right to complain” campaignMost alternative dispute resolution schemesin the financial services sector report thatpeople from non-English speakingbackgrounds do not use the schemes to thesame extent as consumers for whomEnglish is their first language. This isconsistent with findings on the use ofcomplaints mechanisms in other areas.

We will therefore consult with the relevantschemes, Treasury, and relevant communitygroups to ascertain whether there is a needfor a campaign to inform people from non-English speaking backgrounds about theavailability of dispute resolution schemes.Such a campaign will need to be sensitiveto the barriers to access by members of thedifferent communities – for example, somecultures may discourage or finduncomfortable overt litigation orcomplaint.

If a need is identified, we will seek to makesuch a campaign a joint project thatpromotes the right to complain, ratherthan any particular scheme, and providesclear avenues for accessing the correctscheme.

We will consult closely with the relevantcommunities about the most effective wayto target the information to differentcommunities, including by providinginformation in relevant communitylanguages. We expect that our proposedfact sheet on how to complain (see above)will be a component of this campaign.

School leaver publicationsIn 2000, we developed a ‘Finance Facts’flyer that was distributed to all ACT Year 12students with their final results. Thiscontained some basic tips that wereparticularly relevant for those leavingschool and starting work and/or tertiaryeducation.

Other jurisdictions also produce bookletson general consumer issues that aretargeted to school leavers.

We intend to work with the relevanteducation and Fair Trading / ConsumerAffairs agencies in the States and Territoriesto ensure that school leavers (at all levels)receive basic information about financialservices that are relevant to the decisionsthat will be facing them.

We may do this by distributing a separatepublication (for example, the Finance Factsflyer) or by providing content for schoolleaver publications developed by the Stateand Territory agencies.

Campaign for classified advertisersUnfortunately, the financial services sectoris not immune from businesses thatdistribute misleading or deceptiveadvertising. Particular areas of concerninclude the advertising of investments andinvestment seminars that promise ‘get richquick’ investment strategies.

One way to reduce the incidence ofmisleading or deceptive advertisements isto give classified staff the information andskills to recognise potential problems andto develop policies on refusing to publishillegal or borderline advertisements.

We intend to work with the relevantindustry association to develop a campaignto draw the attention of classifiedadvertising staff to this issue, and to helpthem develop appropriate policies forrejected advertisements. This initiative willinclude a resource that enables staff toidentify problem areas.

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Coordination and researchThis section describes our coordination andresearch initiatives. However, it is possiblethat additional research projects could beadded once these current projects havebeen completed.

Consumer education bulletin boardIn 2000, we launched the FinancialInformation Directory – an online directoryof consumer education resources producedby government, industry, consumer groupsand others.

We intend to complement the Directory bydeveloping a bulletin board or discussionforum, where those providing consumereducation in financial services can:

• notify of upcoming projects;

• seek partnerships for developingconsumer education material;

• exchange views on the effectiveness ofconsumer education initiatives.

There are some preliminary issues –including that of moderating content –that would need to be resolved before wecould formally commit to hosting such aservice.

Financial Information DirectoryThe online Financial Information Directorywas launched in November 2000, and wasdeveloped with the assistance of theSecurities Institute. The Directory providesinformation about over 300 consumereducation resources provided bygovernment, industry, and consumergroups, and many of the resources listed inthe Directory are available on the Internet.

The Directory is a useful tool forconsumers, consumer advisers, andsuppliers of education resources:

• Consumers can use the directory to findinformation produced by a range oforganisations.

• Consumer advisers and communityworkers can use the directory to findinformation that they can use in theirwork, or that they can provide to theirclients.

• Education providers can use theDirectory to identify whether there areany gaps in provision of material,whether someone else has alreadyproduced material that they intend toproduce, and/or to identify possibleorganisations for joint projects.

We plan to conduct an update of theDirectory later this year, and will continueto explore ways to promote the availabilityof the Directory in the community.

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Benchmarking financial literacyThere is currently a paucity of informationabout the level of financial literacy in thecommunity. In our Discussion Paper, weflagged the possibility of initiating a projectto measure and survey current levels offinancial literacy. We have since beeninformed of the possibility that a similarproject might be undertaken by a privatesector organisation. If this project proceeds,we hope to be able to provide appropriateinput and support to the project.

Literature survey and review ofconsumer education researchDuring 2001, our Consumer Advisory Panel(CAP) commissioned a research project tosurvey and review research on consumereducation. The aim of the project is to:

• survey and collect existing research onconsumer education issues, includingpublished and unpublished material;

• review the existing research to isolatethe messages and lessons that may berelevant for the development andimplementation of ASIC’s consumereducation strategy, including lessonsabout the factors that make aneducation campaign effective and anybest practice guidelines;

• identify whether there is a need forASIC to conduct or commission anyfurther research on consumer educationissues, and if so, what that researchshould cover.

The resulting report is expected by the end of 2001.

FeedbackFeedback from our Discussion Papersuggested that a variety of formats,distribution methods, and targetingmethods could be used. Most submissionsspecifically noted that it is important tochoose the right format, distributionmethod, and targeting method dependingon the needs, interests and characteristicsof the target audience.

Feedback also highlighted the importanceof aligning the distribution and formatwith the common processes used formaking the relevant financial decision, egin conjunction with a planner or adviser.This will assist in delivering education atthe time that consumer needs to make orreview a decision

A summary of the main points raised infeedback is on page 27.

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Commentators on ourdiscussion paperWritten comments on the EducatingFinancial Services Consumers: DiscussionPaper were received from the followingorganisations and individuals.

Association of Superannuation Funds ofAustralia Limited

Australian Competition and ConsumerCommission

Australian Consumers’ Association

Australian Retirement Fund Pty Ltd

Australian Retirement Income StreamsAssociation Limited

Australian Shareholders’ Association

Care Inc. Financial Counselling Service

Commonwealth Bank of Australia

Consumer Affairs Division, Department ofthe Treasury

Consumer Credit Legal Centre (NSW) Inc.

Consumer Credit Legal Service (Vic)

CPA Australia

Department of Family and CommunityServices

Financial Information Complaints Service

Financial Planning Association of Australia

Gordon Renouf (Consumer Consultant)

Institute of Actuaries of Australia

Institute of Chartered Accountants

Insurance Council of Australia Limited

Learning Circles Australia

Money Skills Pty Limited

More Than Just Talk

National Information Centre on RetirementInvestments

National Insurance Brokers Association ofAustralia

NRMA Insurance Limited

Plum Financial Services Ltd

Securities Institute of Australia

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Appendices5

Format and distribution methods This appendix provides a summary of themain suggestions made in submissions tothe Discussion Paper in response toquestions on format and distributionmethods.

InternetSubmissions supported the view that theInternet could be an effective distributionmechanism for information, and alsosuggested that it was important to developstrategies to drive traffic to ASIC’s internetsite (eg hyperlinks from other sites).Submissions noted that the Internet alsohas the potential to be a very effectivemechanism for distribution of relevantinformation to community workers (eg factsheets in English and communitylanguages).

However, it was recognised that somegroups may have little interest in, or accessto, the Internet, and that Internet shouldnot be the sole mechanism used fordelivering consumer education.

Written materialA number of submissions suggested thatwritten material could be effective inappropriate circumstances. For example,when used in conjunction with back upsupport via telephone; when provided asan adjunct to a direct service (eg a seminar,training session, or other face to faceactivities); or in response to a specificquery.

It was also suggested that written materialin community languages would often bewell received, as there is so little material incommunity languages available. However,direct translation of material in English israrely satisfactory, and it is important toconsider the target group’s level of literacyin their first language.

A further situation where written materialmight be appropriate is when it is carefullydesigned and distributed to a well-definedgroup – for example, street magazines andcomic books may be an effective way totarget young consumers.

MediaA number of submissions suggested thatthe media was an effective tool forconsumer education, especially forachieving broad based outcomes. Onesubmission suggested that print media wasparticularly effective for older consumers.

Suggested strategies for using the mediaincluded providing a regular column tomainstream and specialist media outlets onconsumer education, and deliveringwarning about possible pitfalls throughhuman-interest stories, infotainment, anddrama.

Advertising in relevant media might also beeffective – for example, by providing acontact number for written information, orby copying the techniques of scamsters tograb the attention of readers.

The importance of targeted media was alsohighlighted by a number of submissions.For example, youth media and youthevents can be effective mechanisms forproviding information to young people.

Similarly, ethnic media – newspapers, radio,newsletters, etc – can be used effectively totarget consumers from non-Englishspeaking backgrounds.

IntermediariesA number of submissions suggested thatcommunity and other intermediaries couldbe used effectively for distributing orchannelling information to consumers.Community intermediaries are often a firstport of call for consumers with a problem,and working with intermediaries canmaximise the effectiveness of theinformation provided, as well as thenumber of people that can be reached.

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Workplace representatives may also beeffective intermediaries in the delivery ofconsumer education.

Another option might be to providerelevant resources to be used in the contextof informal education already used in thecommunity (eg living and parenting skillscourses, migrant resource centre programs,senior citizens programs, etc).

However, it is important to ensure thatintermediaries are independent, and also totake into account the time and resourceconstraints facing consumerrepresentatives, service delivery agencies,and other community intermediaries. Also,intermediaries often see consumers onlyafter a problem has emerged.

It is also important to recognise that theremay need to be some education delivereddirectly to the target group, eg to alertthem to the availability of the service.

Another submission suggested that it wouldbe most effective to partner withorganisations that are already servicing thetarget audiences in a way that allows ASICsourced information to retain itsindependence.

Video presentationsVideo presentations, for example, throughopen learning channels, were suggested asbeing useful for consumers with lowerliteracy levels.

Learning circles / discussion guidesIt was suggested that learning circles anddiscussion guides were a good way toincrease understanding and facilitateparticipation and discussion on financialservices issues, especially for complexmatters. Participants also learn from theprocess of discussion. In addition, it wasthought that some people might beunresponsive to teaching environmentsthat imply a power imbalance.

Learning circle processes also have thepotential to target groups facing particularbarriers to accessing mainstream consumereducation programs (eg young people,people from non-English speakingbackgrounds, women, and older people).

Other suggestionsOther suggestions for effective format anddistribution mechanisms included:

• seminars and talks by qualified speakers;

• relevant magazines or newsletters;

• 0055 consumer advice numbers;

• audio cassettes;

• advertising on milk box cartons.

Targeted initiatives forvulnerable groupsIn relation to targeting vulnerable groups, astrong theme emerging from thesubmissions was that there was nouniversal ‘right way’ to meet theireducation needs. Instead, initiatives needto be designed in conjunction withrelevant community groups ororganisations that represent or support themembers of those groups. It is important tohave direct involvement and ownership bystakeholders, and also to use existingcommunity organisations and networks fordelivery and distribution of consumereducation material and messages.

It is also important to recognise anypotential blocks to effective educationdelivery to the target group. For example,some immigrant communities may havesignificant cultural differences compared tothose born in Australia, or may havesuffered recent trauma and/or have Englishlanguage difficulties.

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© Australian Securities and Investments Commission 2001GPO Box 4866 Sydney, NSW 1042www.fido.asic.gov.auASIC Infoline: infoline@asic.gov.au, phone: 1300 300 630

Find all ASIC’s financial tips andsafety checks for consumers andinvestors at www.fido.asic.gov.auOrder copies of our publications Don’t KissYour Money Goodbye and Super decisions: aguide through the superannuation maze throughASIC’s Infoline.

Email: infoline@asic.gov.au or Phone: 1300 300 630

The Australian Securities and InvestmentsCommission enforces company andfinancial services laws to protectconsumers, investors and creditors.

We are an independent Commonwealthgovernment body, responsible forconsumer protection in shares and otherfinancial investments including managedfunds, superannuation, insurance anddeposit taking.

We regulate and inform the public aboutAustralian companies, financial markets,financial services organisations andprofessionals who deal and advise ininvestments, superannuation, insuranceand deposit taking.

The Australian Securities and InvestmentsCommission Act 2001 requires us to

• uphold the law uniformly, effectivelyand quickly

• promote confident and informedparticipation by investors andconsumers in the financial system

• make information about companies andother bodies available to the public

• improve the performance of thefinancial system and the entities within it.

We work with other financial, consumerand law enforcement bodies in Australiaand internationally.

ASIC at a glance

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