Empowering Tomorrows Consumers Consumer Protection & Financial Literacy Sue Rutledge Global Coordinator, World Bank PARTICIPANTS: PLEASE SIT WITH CONSUMER ORGANIZATIONS FROM YOUR GEOGRAPHIC REGION

Empowering Tomorrows Consumers Consumers International World Congress May Hong Kong Consumer Protection & Financial Literacy Sue Rutledge Global Coordinator, World Bank

Program for Europe & Central Asia Region started 2005 Global Program launched November 2010 World Bank loans of $28 million Ongoing projects of $144 million Donor funding from Dutch BNPP, Japanese PHRD, Russian Financial Literacy/Financial Education Fund, Swiss SECO, UK DFID, USAID Global Program on Consumer Protection & Financial Literacy 3

Strategy for Country Programs Baseline Household Survey of Financial Literacy & Consumer Behavior Action Plan to Implement Recommendations Diagnostic Review of Legal & Regulatory Framework Implementation Program 4 Follow-up Household Survey Feedback Loop Input

Implementation Programs Action Plans -In pipeline Household Surveys -In pipeline Diagnostic Reviews -In pipeline Projects Underway

33 countries have requested assistance Detailed diagnostic reviews completed in 12 countries Household surveys in 4 countries Action plans in 3 countries Implementation underway in 3 countries Planned activities in 14 countries Armenia, Azerbaijan, Bosnia & Herzegovina, India, Kazakhstan, Malawi, Nicaragua, Pakistan, Philippines, Russia, South Africa, Tajikistan, West Bank/Gaza, Zambia Status of Country Programs 6

7 Initial Results of Country Programs First Financial Education Strategy (2007) Consumer Protection Department at CNB (2008) Financial Arbiter to cover all financial sector (2009) Czech Republic New regulation of financial intermediaries (2010) Banking Associations ombudsman (2007) and new financial ombudsman (2010) Slovakia Central Banks Consumer Protection Unit (2009) Steering group on consumer protection (2010) Azerbaijan MoFs evaluation of institutional arrangement (2010) Industry association implemented recommendations (2010) Lithuania Inter-institutional working group on consumer protection & competition, including Reserve Bank (2011) Malawi

Main Stakeholders GOVERNMENT Ministries (e.g. Finance, Economy, Education) Public agencies (e.g. consumer protection, data protection, competition) Councils (e.g. consumer protection, education) FINANCIAL SUPERVISORS Financial supervisory agencies Central Bank Financial consumer protection agency Compensation schemes INTERNATIONAL COMMUNITY Donors Regional organizations Standard setters International associations REDRESS MECHANISMS Ombudsman Arbitration Mediation, conciliation Courts CIVIL SOCIETY Consumer associations Debt counseling Foundations Academia Media FINANCIAL INDUSTRY Industry associations Training centers Financial institutions (incl. distributors) Financial infrastructure (e.g. credit bureaus) 8

Ins Banking Insurance Private Pensions Securities Non-Bank Credit, incl. MFI Good Practices for each sector focus on o Consumer disclosure o Business practices o Complaints & dispute resolution o Financial literacy Credit Reporting All Formal Financial Services covered by Good Practices 9

o Collect and publish case studies and other data on consumer complaints about financial services o Publish stories showing how consumers can exercise their legal rights o Publish comparable financial offers o Provide glossary of common financial terms and concepts o Maintain a hotline of advice for financial consumers o Go to court on behalf of financial consumers o Advocate for improved consumer protection in financial legislation Some Ideas on how Consumer Organizations can Help 10

Develop organization charts with defined roles Draft five-year strategies Prepare annual budgets Have annual financial statements audited by independent auditor Establish track record of impact in helping financial consumers Provide advice to government consumer protection agencies How can Consumer Organizations become Eligible for World Bank Funding? 11

Empowering Tomorrows Consumers Consumers International World Congress May Hong Kong World Bank Global Program on Consumer Protection & Financial Literacy Sue Rutledge - Global Coordinator