Helping consumers and investorsAn ASIC Better Regulation Initiative

Today, consumers face more financial choices and complexity than ever before. Financial literacy is increasingly recognised as animportant life skill, and while many people prefer to rely on someoneelse’s advice, it’s often difficult to assess that advice and know who to trust.

As the national consumer protection regulator for financial services,the Australian Securities and Investments Commission (ASIC) can help you. This guide explains:

● our approach to consumer education

● where you can go to get help

● other aspects of our consumer protection role.

It also updates our Consumer Education Strategy 2001–04.

5 How we help you

6 Our approach to consumer education

8 Where to get help

15 Other aspects of our consumer protection role

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The Australian Securities and InvestmentsCommission (ASIC) is responsible for promoting theconfident and informed participation of consumersand investors in the financial system.

Our aim is to foster a financially literate community,where Australian consumers can make informeddecisions about financial products and services,understand their rights and responsibilities, andidentify and avoid scams and swindles. We do this through a strategic program of education,information, compliance and enforcement, designed to promote integrity in the marketplace.

While we cannot give people specific advice aboutwhat to do, we can provide impartial and unbiasedinformation and comparison tools that are free fromcommercial interests. By using the information weprovide, consumers are in a better position to maketheir own decisions, know what to look out for andwhat questions to ask.

What we offerAs a consumer or investor, you can access free,independent information about money mattersthrough our dedicated consumer website atwww.fido.gov.au. Use FIDO to help find lost money,or FIDO’s calculators to compare products, testadvice and help plan your financial future.

You can also ask us for help or information throughour Infoline on 1300 300 630 or visit our FIDOCentre at 120 Collins Street, Melbourne.

How we help you

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Other ways you’ll benefit from what we do include:

● catching up on our latest consumer tips andwarnings in the media or on our website

● getting a free copy of our easy-to-readconsumer booklets (also available in a rangeof languages)

● being involved in our consumer educationcampaigns

● taking advantage of our work in partnershipwith other consumer and Governmentagencies

● talking to us at money expos and otherspecial events about the issues that affect you.

You can also complain to us about misconduct orillegal activity in financial products and services.

More about Better RegulationOur Better Regulation initiatives aim to make ourregulation more transparent, accessible and easier towork with. So far we have published:

● a booklet which summarises our BetterRegulation priorities, what we have done todate and our plans for the future

● a Service Charter setting out what you canexpect when you deal with us and how longit will take to do things

● ASIC: a guide to how we work, explainingwhat we do, how we approach issues, howwe consult with stakeholders and how weare accountable.

You can find these documents and more about ASICat www.asic.gov.au.

We help you become better informed and moreconfident about using financial products andservices by providing:

● warnings about the latest financial scams

● budgeting, savings and moneymanagement tools and tips

● financial planning and investing basics

● information about your rights andresponsibilities

● information about financial products andservices

● information about the risks associated with investing.

We also provide interactive tools, such as calculators,that allow you to check advice, compare productsand see how your decisions could affect your future.

Our approach to consumer education

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In deciding what issues to focus on, we consider:

● the risks to you—potential or actual—whichmay be avoided or mitigated by warnings,information or education

● whether there are gaps in informationprovided by other agencies

● trends emerging from intelligence wegather—for example, through ourcompliance work or the complaints wereceive

● new financial products and services on the market

● advice from consumer representatives,including our Consumer Advisory Panel

● feedback from industry, Government andother stakeholders

● new Government policy or changes toexisting policy.

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FIDO (www.fido.gov.au)

FIDO, our dedicated consumer website,gives you independent and topicalfinancial information and tools. Someinformation is also available in audio filesyou can download and listen to at yourconvenience.

Infoline (1300 300 630)

Infoline answers your queries or registerscomplaints about financial products orservices.

FIDO Centre (120 Collins Street, Melbourne)

Visit us to pick up consumer informationor use a FIDO terminal.

Financial tips and warnings in the media

Our consumer alerts, columns andcommunity radio programs get themessage out through the media.

Consumer booklets

You’ll find a wealth of information in ourfree, easy-to-read guides on moneymatters.

Expos and other events

At these events we meet you face-to-faceand discuss your interests and concerns.

Education campaigns

Our targeted campaigns focus on specialcommunity issues and concerns.

Complaints

If you get into trouble, you can complainto us about misconduct or illegal activityin financial products or services.

Partnerships

We work with industry and consumergroups, educators and other Governmentagencies.

Here’s how our messages about money matters reach you.

FIDO (www.fido.gov.au)Our consumer website is an important source offinancial information and tips for consumers andinvestors, as well as teachers, journalists andGovernment agencies.

The information on the website is unbiased anddeals with current financial issues and events. In 2005–06, FIDO had over 780,000 visits.

You can print out all the information on FIDO asfact sheets. If you cannot access FIDO, call ourInfoline on 1300 300 630 and we will print off and send you the information you need.

Interactive toolsFIDO has interactive features and practical tools,such as calculators, to help you make decisionsabout investments and financial products. You’ll find calculators on:

● superannuation

● risk and return

● reverse mortgages

● compound interest

● retirement income stream products.

You can also test how well you understand moneymatters with FIDO’s quizzes—for example, can youspot and avoid a potentially dangerous investment?

To try out these interactive tools, go towww.fido.gov.au/calculators andwww.fido.gov.au/quiz.

Where to get help

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Online searches and safety checksOn FIDO, you can:

● search for unclaimed money that you orsomeone you know may have in forgottenbank accounts, life insurance or shares

● check whether a financial services businessyou are thinking of doing business with islicensed

● search for information relevant to your stagein life or a financial turning point—such asbuying a home or retiring from full-time work

● search for consumer reports and booklets by ASIC.

FIDO NewsOver 13,000 people currently subscribe to FIDONews, our free e-newsletter. FIDO News keeps you up-to-date on the latest scams and any newconsumer booklets or reports.

To subscribe, go to www.fido.gov.au/FIDOnews.

Infoline (1300 300 630)Call our Infoline for information about:

● financial services and products

● your rights as a consumer or investor

● how to get a copy of our consumer booklets (or information from FIDO)

● how to complain about companies andservices

● policy and procedures for fundraising,licensing, disclosure and takeovers.

Our Infoline is available from 9am to 7pm AustralianEastern Time, Monday to Friday. In 2005–06, weresponded to 770,000 calls.

FIDO Centre (120 Collins Street, Melbourne)Visit our FIDO Centre in Melbourne to pick upcopies of our consumer booklets, access the FIDOwebsite or speak to our customer service staff.

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Financial tips and warnings in the mediaConsumer alerts For many people, the media is an important source of information about money matters. We regularly issue ‘consumer alerts’ for radio, TV and newspapers with:

● financial tips and information—from simplebudgeting and saving to financial planningand investing

● warnings about financial scams or rip-offs to avoid.

We also produce columns from our Chairmancovering a range of issues to help consumers.

Community radioWe have developed a series of programs forcommunity and local radio based on our popularYour Money booklet. These programs give practicaltips about money matters, warn you about things to look out for, and tell you how to get moreinformation.

In 2006, we distributed the programs to local andcommunity radio stations around Australia, many in rural and regional areas. The programs are alsoavailable as audio files on the FIDO website.

Consumer bookletsYou can get free copies of our consumer booklets by calling Infoline on 1300 300 630, or print them out from the FIDO website atwww.fido.gov.au/publications.

You can also pick up copies of our booklets throughCentrelink’s Financial Information Service, and frompublic libraries in some states.

In 2005–06, we distributed 314,000 consumerbooklets, as well as 1.4 million copies of Super Choicesin partnership with the Australian Tax Office.

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You Can ComplainA guide to making an effectivecomplaint about a financialproduct or service. (Alsoavailable in Arabic, Chineseand Vietnamese.)

Your MoneyA guide to managing yourmoney, making smarterdecisions and avoidingexpensive mistakes. (Alsoavailable in Arabic, Chinese,Greek, Italian, Turkish andVietnamese.)

Getting AdviceA guide to finding the rightfinancial adviser and advicethat works for you.

Super and Us MobA fact sheet for Indigenouspeople that explains howsuperannuation works, what you are entitled to as an employee and howsuperannuation helps your family.

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Dealing with Book Up: A Guide and Dealing withBook Up: Key FactsResources for people workingon developing responses to‘book up’ in Indigenouscommunities.

To The Max and In theDriver’s SeatBooklets about financial issuesfaced by young people—suchas managing the costs ofmobile phones, car financeand insurance, budgeting,credit cards and first-timeemployment.

Moola TalkA comic-style booklet aboutfinancial issues faced byIndigenous people in regionaland remote areas—such asprotecting your PIN, dealingwith door-to-door salesmen,being smart about insurance,and ‘book up’.

Dealing with DebtA guide to coping with your debts, including your rights andresponsibilities (produced with the ACCC).

Super ChoicesA guide to understandingand making superannuationdecisions. (Also available in Arabic, Chinese, Korean, Russian, Turkish and Vietnamese.)

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Education campaignsIf an issue affects a specific group in the community,we will run a targeted education campaign toaddress or raise awareness about it. Here are a fewexamples of current campaigns.

Resources for Indigenous Australians We have produced education and informationresources specifically for Indigenous Australians, inparticular for people working to solve the problemsof ‘book up’ in remote communities. (‘Book up’ isshort-term credit which usually involves theconsumer handing over their key card and PIN to astorekeeper or other trader.)

We also employ Regional Areas Campaign Officerswho:

● investigate complaints affecting consumersin regional and remote communities,particularly Indigenous communities

● provide information and education resourceswhen visiting communities.

For more information, go towww.fido.gov.au/indigenous.

Enhancing the financial education of our defence force We are working with the Australian Defence Force to develop a program to deliver enhancedfinancial education to our defence force personnelacross Australia.

High school poster competitionWe run a poster competition for high schoolstudents to encourage them to think about moneymatters. At this age, many young people will soonreceive their first income from part-time work andwill need to start making financial decisions.

To enter the competition, students must design aposter and slogan that conveys a consumerprotection or financial literacy message.

The competition started in the Northern Territory in 2003 and recently extended to the ACT, withsupport from both education departments. Itreflects our strong commitment to financial literacyeducation in schools.

For more information about our resources for youngpeople, go to www.fido.gov.au/young.

Affinity fraud education campaignWe are planning an education campaign about thedangers of affinity fraud. Affinity fraud refers toinvestment scams that prey on a certain community,such as a religious or sporting group, an ethniccommunity or the elderly. The fraudsters are groupmembers (or claim to be) or they enlist respectedleaders to spread the word about the scam.

Our campaign will target particular groups andgroup leaders with warnings about the dangers ofinvesting solely on the advice of a fellow communitymember, and reinforce our messages about thenature of investing and risk/return.

For information and warnings about financial scams,go to www.fido.gov.au/scams.

Expos/special eventsTalking to consumers is an important part of ourconsumer protection role. To hear about theproblems and issues you are dealing with, our staff:

● attend industry and consumer expos around Australia to meet you and answeryour questions

● speak at conferences and events at therequest of community groups, schools and consumer organisations.

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PartnershipsWe know that delivering effective consumer education,improving financial literacy and protecting the integrityof the marketplace needs to be a collaborative effort.Wherever appropriate, we partner with otherorganisations to develop and distribute educationprograms and products for a wider audience, or workwith industry on compliance issues.

Our partners are usually other Government agencies,industry associations or consumer and communityorganisations, rather than individual financialinstitutions.

Here are some examples of recent partnerships:

● We are a partner of the Financial LiteracyFoundation for the Australian Government’snew Understanding Money website andresources.

● We’ve worked with the Australian Consumers’Association to conduct ‘shadow shopping’campaigns that replicate the experiences ofreal consumers who are shopping for advice.

● With the Australian Competition andConsumer Commission (ACCC), wedeveloped a guide about rights andresponsibilities for consumers in debt.

● Centrelink’s Financial Information Service and the Financial Planning Association helpdistribute some of our consumer booklets.

● We ‘train the trainer’ on consumer issues,including working with financial counsellorson matters such as superannuation.

● With the Australian Taxation Office, wedeveloped Super and Us Mob, our educationmaterial for Indigenous employees aboutsuperannuation.

● NSW and Qld Offices of Fair Trading, WA Department of Consumer andEmployment Protection, SA Office ofConsumer Affairs and Australian Bankers’Association helped produce our educationresources about ‘book up’ for Indigenouscommunities.

ComplaintsYou might be the victim of misconduct orillegal activity in financial products andservices. If this happens, you can complain to us.

Your complaints:

● tell us which people, companies,products and issues are causingproblems for consumers, investors and creditors

● suggest targets for our consumereducation, surveillance and inspections

● help us select cases for possiblecriminal or civil action.

Our National Assessment & Action team lookcarefully at all complaints we receive and assistwherever possible. In 2005–06, we received12,075 complaints.

You can lodge a complaint by fax, email orpost. For more information, go towww.fido.gov.au/complain.

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Other aspects of ourconsumer protection role

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Consumer policy

We develop policy aimed at protectingconsumers, and provide input aboutconsumer issues for Government policydevelopment.

Consumer research

We research issues affecting consumers offinancial products and services, and usethis research to inform our policy,education and compliance work.

Some of our consumer protection work is less visible but just as important.

Compliance and campaigns

Where needed, we conduct targeted campaignsto help change industry practice and raiseindustry standards to benefit consumers.

For example, in 2005 we publishedGetting home insurance right: a reporton home building insurance as part of acampaign on underinsurance followingthe ACT bushfires in 2003. This reporthas already had an impact on homeinsurance being offered to consumers.

Industry codes of conduct

We work with industry to develop orupdate codes of conduct that provideconsumers with important protections.

Dispute resolution

We approve independent externaldispute resolution schemes which helptens of thousands of Australianconsumers resolve their financial servicesdisputes each year. Almost all financialservices providers must be a member ofone of these approved schemes.

Consumer liaison

We regularly liaise on a formal andinformal basis with stakeholders whorepresent consumers’ interests. OurConsumer Advisory Panel includesrepresentatives from a range of consumerorganisations. It meets every quarter toadvise ASIC on issues affecting consumers.

Enforcement

Where we find serious breaches of thelaw, we can take civil, administrative orcriminal action.

© December 2006 Australian Securities and Investments Commission (ASIC)